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Burlington Stores, Inc. BURL has reported impressive fourth-quarter fiscal 2024 results, wherein both sales and earnings surpassed the Zacks Consensus Estimate. Also, both the top and bottom lines grew year over year. Consequently, BURL shares rose 8.7% at the close of yesterday's trading session.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Burlington achieved strong sales growth in the fourth quarter, driven by effective merchandising, supply-chain improvements and store operations. Earnings exceeded expectations, supported by higher sales, improved margins and operational efficiencies.
Throughout the year, the company expanded its footprint with new store openings and relocations, making significant progress toward its long-term financial goals. Also, the off-price model is well-positioned to navigate a dynamic market.
Burlington Stores, Inc. Price, Consensus and EPS Surprise
Burlington Stores, Inc. price-consensus-eps-surprise-chart | Burlington Stores, Inc. Quote
More on Burlington’s Q4 Financial Results
Burlington reported adjusted earnings of $4.07 per share, which surpassed the Zacks Consensus Estimate of $3.76. The bottom line rose 11.2% from $3.66 per share in the year-ago quarter.
Total sales of $3,277.1 million increased 4.8% from the prior-year quarter and beat the Zacks Consensus Estimate of $3,261 million. The company’s comparable store sales jumped 6% from the year-ago period. Net sales were $3,272.1 million and other revenues were $5 million.
Insight Into BURL’s Margins
The gross margin was 42.9%, up 30 basis points (bps) from fourth-quarter fiscal 2023. The merchandise margin expanded 10 bps and freight expenses improved 20 bps year over year.
Adjusted selling, general and administrative (SG&A) expenses rose 4% year over year to $745.6 million. Adjusted SG&A expenses, as a rate of net sales, were 22.8%, down 20 bps from fourth-quarter fiscal 2023. We estimated adjusted SG&A expenses, as a rate of net sales, to be 23.7% in the fourth quarter.
Product sourcing costs were $217 million, up from $210 million in the year-ago quarter.
Adjusted EBITDA increased 8.8% from the fourth quarter of fiscal 2023 to $451 million. The adjusted EBITDA margin increased 50 bps to 13.8%. Adjusted EBIT was $359.5 million, up 9.9% from $327.1 million in the year-ago quarter. The adjusted EBIT margin was 11%, up 50 bps from the year-ago quarter.
BURL’s Financial Snapshot: Cash, Debt and Equity Overview
The company ended the reported quarter with cash and cash equivalents of $994.7 million, long-term debt of $1.54 billion and stockholders’ equity of $1.37 billion. BURL exited the fiscal fourth quarter with $1.82 billion of liquidity, including $995 million of unrestricted cash and $827 million available under its ABL facility.
Burlington ended the quarter with $1.71 billion of outstanding total debt, comprising $1.24 billion under its term-loan facility, $453 million of convertible notes and no borrowings under its ABL facility.
The company bought back 218,443 shares for $61 million under its share repurchase plan in the fiscal fourth quarter. As of Feb. 1, 2025, BURL had $263 million remaining under its current share repurchase authorization.