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Burlington Stores, Inc. (BURL - Free Report) has reported impressive fourth-quarter fiscal 2023 results, wherein sales and earnings beat the Zacks Consensus Estimate. Also, both top and bottom lines grew year over year.
Burlington Stores, Inc. Price, Consensus and EPS Surprise
Burlington Stores has reported adjusted earnings of $3.66 per share, surpassing the Zacks Consensus Estimate of earnings of $3.28. The bottom line rose 23.6% from $2.96 in the year-ago quarter.
Total revenues of $3,126.4 million beat the Zacks Consensus Estimate of $3,039 million and increased 13.9% from the prior-year quarter. The company’s comparable store sales jumped 2% from the year-ago period.
Image Source: Zacks Investment Research
Margins
The gross margin was 42.6% in the reported quarter, up 190 basis points (bps) from fourth-quarter fiscal 2022. Notably, we expected the gross margin to increase 130 bps year over year in the quarter under review. The merchandise margin increased 140 bps and freight expenses declined 50 bps.
Adjusted selling, general and administrative (SG&A) expenses rose 20.9% year over year to $716.9 million in the fiscal fourth quarter. Adjusted SG&A expenses, as a rate of sales, was 23%, increasing 130 bps from fourth-quarter fiscal 2022. We estimated adjusted SG&A expenses, as a rate of sales, to increase 90 bps year over year in the fourth quarter.
Product sourcing costs came in at $210.3 million, up from $187 million in the year-ago quarter.
Adjusted EBITDA increased 21.1% from the fourth quarter of fiscal 2022 to $414.4 million. The adjusted EBITDA margin increased 80 bps to 13.3% in the quarter under review. Adjusted EBIT was $327.1 million, up from $273.7 million in the year-ago quarter. The adjusted EBIT margin was 10.5%, increasing 50 bps from the fourth quarter of fiscal 2022.
Other Financial Aspects
The company ended the reported quarter with cash and cash equivalents of $925.4 million, long-term debt of $1,394.9 million, and stockholders’ equity of $996.9 million. BURL exited the fiscal fourth quarter with $1,634 million of liquidity, including $925 million of unrestricted cash and $709 million available under its ABL facility.
Burlington Stores ended the quarter with $1,409 million of outstanding total debt, comprising $937 million under its term loan facility, $453 million of convertible notes and no borrowings under its ABL facility.
Burlington Stores bought back 605,311 shares for $103 million under its share repurchase plan in the fiscal fourth quarter. As of Feb 3, 2024, BURL had $500 million remaining under its current share repurchase authorization.
Outlook
For the first quarter of fiscal 2024, comps are expected between flat and a 2% rise, whereas it reported a 4% rise in the year-ago period. The adjusted EBIT margin is likely to grow 20-60 bps from the prior-year quarter’s reading and the adjusted EPS is forecast between 95 cents and $1.10.
The anticipated adjusted EBIT margin and adjusted EPS figures exclude the impacts of incremental expenses of $8 million or 9 cents per share, respectively, associated with the acquired Bed Bath & Beyond lease.
For fiscal 2024, comparable sales are anticipated to increase 0-2%, whereas it reported a 4% increase in fiscal 2023. Net sales are expected to grow 9-11% year over year.
The adjusted EBIT margin (excluding the impacts of expected incremental expenses of 9 million related to the recently acquired Bed Bath & Beyond leases) is expected to increase 10-50 bps for the fiscal year. Adjusted earnings per share (EPS) are envisioned to be $7.00-$7.60, whereas it reported $6.06 in the previous fiscal year. The expected adjusted EPS excludes the impacts of incremental expenses of 11 cents per share related to the acquired Bed Bath & Beyond leases.
In fiscal 2024, management intends to open 100 stores and projects a capital expenditure, net of landlord allowances, of $750 million. Net interest expenses are expected to be $43 million, whereas the effective tax rate is likely to be 27%.
Over the past three months, this Zacks Rank #3 (Hold) stock has gained 25.4% compared with the industry's growth of 21.4%.
Stocks to Consider
Some better-ranked stocks are Deckers Outdoor Corporation (DECK - Free Report) , Casey's General Stores, Inc. (CASY - Free Report) and Grocery Outlet Holding Corp. (GO - Free Report) .
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 38.6% and 15.7%, respectively, from the fiscal 2024 reported figures. DECK has a trailing four-quarter average earnings surprise of 32.1%.
Casey's operates convenience stores. The company has a Zacks Rank #2 (Buy) at present. CASY delivered an earnings surprise of 13.4% in the last reported quarter.
The Zacks Consensus Estimate for Casey's current fiscal-year earnings implies growth of 12.1% from the fiscal 2023 reported number. CASY has delivered a trailing four-quarter earnings surprise of 17.8%, on average.
Grocery Outlet is a high-growth, extreme-value retailer of quality, name-brand consumables and fresh products. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year earnings and sales indicates growth of 9.4% and 9.4%, respectively, from the prior year’s reported figures. GO has delivered a trailing four-quarter earnings surprise of 17%, on average.
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Burlington Stores (BURL) Q4 Earnings & Sales Beat, Rise Y/Y
Burlington Stores, Inc. (BURL - Free Report) has reported impressive fourth-quarter fiscal 2023 results, wherein sales and earnings beat the Zacks Consensus Estimate. Also, both top and bottom lines grew year over year.
Burlington Stores, Inc. Price, Consensus and EPS Surprise
Burlington Stores, Inc. price-consensus-eps-surprise-chart | Burlington Stores, Inc. Quote
Insight Into the Headlines
Burlington Stores has reported adjusted earnings of $3.66 per share, surpassing the Zacks Consensus Estimate of earnings of $3.28. The bottom line rose 23.6% from $2.96 in the year-ago quarter.
Total revenues of $3,126.4 million beat the Zacks Consensus Estimate of $3,039 million and increased 13.9% from the prior-year quarter. The company’s comparable store sales jumped 2% from the year-ago period.
Image Source: Zacks Investment Research
Margins
The gross margin was 42.6% in the reported quarter, up 190 basis points (bps) from fourth-quarter fiscal 2022. Notably, we expected the gross margin to increase 130 bps year over year in the quarter under review. The merchandise margin increased 140 bps and freight expenses declined 50 bps.
Adjusted selling, general and administrative (SG&A) expenses rose 20.9% year over year to $716.9 million in the fiscal fourth quarter. Adjusted SG&A expenses, as a rate of sales, was 23%, increasing 130 bps from fourth-quarter fiscal 2022. We estimated adjusted SG&A expenses, as a rate of sales, to increase 90 bps year over year in the fourth quarter.
Product sourcing costs came in at $210.3 million, up from $187 million in the year-ago quarter.
Adjusted EBITDA increased 21.1% from the fourth quarter of fiscal 2022 to $414.4 million. The adjusted EBITDA margin increased 80 bps to 13.3% in the quarter under review. Adjusted EBIT was $327.1 million, up from $273.7 million in the year-ago quarter. The adjusted EBIT margin was 10.5%, increasing 50 bps from the fourth quarter of fiscal 2022.
Other Financial Aspects
The company ended the reported quarter with cash and cash equivalents of $925.4 million, long-term debt of $1,394.9 million, and stockholders’ equity of $996.9 million. BURL exited the fiscal fourth quarter with $1,634 million of liquidity, including $925 million of unrestricted cash and $709 million available under its ABL facility.
Burlington Stores ended the quarter with $1,409 million of outstanding total debt, comprising $937 million under its term loan facility, $453 million of convertible notes and no borrowings under its ABL facility.
Burlington Stores bought back 605,311 shares for $103 million under its share repurchase plan in the fiscal fourth quarter. As of Feb 3, 2024, BURL had $500 million remaining under its current share repurchase authorization.
Outlook
For the first quarter of fiscal 2024, comps are expected between flat and a 2% rise, whereas it reported a 4% rise in the year-ago period. The adjusted EBIT margin is likely to grow 20-60 bps from the prior-year quarter’s reading and the adjusted EPS is forecast between 95 cents and $1.10.
The anticipated adjusted EBIT margin and adjusted EPS figures exclude the impacts of incremental expenses of $8 million or 9 cents per share, respectively, associated with the acquired Bed Bath & Beyond lease.
For fiscal 2024, comparable sales are anticipated to increase 0-2%, whereas it reported a 4% increase in fiscal 2023. Net sales are expected to grow 9-11% year over year.
The adjusted EBIT margin (excluding the impacts of expected incremental expenses of 9 million related to the recently acquired Bed Bath & Beyond leases) is expected to increase 10-50 bps for the fiscal year. Adjusted earnings per share (EPS) are envisioned to be $7.00-$7.60, whereas it reported $6.06 in the previous fiscal year. The expected adjusted EPS excludes the impacts of incremental expenses of 11 cents per share related to the acquired Bed Bath & Beyond leases.
In fiscal 2024, management intends to open 100 stores and projects a capital expenditure, net of landlord allowances, of $750 million. Net interest expenses are expected to be $43 million, whereas the effective tax rate is likely to be 27%.
Over the past three months, this Zacks Rank #3 (Hold) stock has gained 25.4% compared with the industry's growth of 21.4%.
Stocks to Consider
Some better-ranked stocks are Deckers Outdoor Corporation (DECK - Free Report) , Casey's General Stores, Inc. (CASY - Free Report) and Grocery Outlet Holding Corp. (GO - Free Report) .
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 38.6% and 15.7%, respectively, from the fiscal 2024 reported figures. DECK has a trailing four-quarter average earnings surprise of 32.1%.
Casey's operates convenience stores. The company has a Zacks Rank #2 (Buy) at present. CASY delivered an earnings surprise of 13.4% in the last reported quarter.
The Zacks Consensus Estimate for Casey's current fiscal-year earnings implies growth of 12.1% from the fiscal 2023 reported number. CASY has delivered a trailing four-quarter earnings surprise of 17.8%, on average.
Grocery Outlet is a high-growth, extreme-value retailer of quality, name-brand consumables and fresh products. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year earnings and sales indicates growth of 9.4% and 9.4%, respectively, from the prior year’s reported figures. GO has delivered a trailing four-quarter earnings surprise of 17%, on average.