Burlington boosts profit; will open 25 stores

Burlington, N.J. – Aided by reductions in areas such as interest expense, debt extinguishment and stock option modification, Burlington Stores Inc. more than doubled its net income to $25.69 million in the first quarter of fiscal 2015 from $11.77 million the same period a year earlier. The company plans to open 25 stores during fiscal 2015.



Burlington Stores also announced it will raise wages for all full time and part-time employees with at least six months of service to $9 per hour, and named Jennifer Vecchio as executive VP/chief merchandising officer.



Net sales rose 5% to $1.18 billion, from $1.13 billion. Same-store sales climbed 0.8%.



Vecchio spent 14 years at Ross in merchandising from 1997 to 2011, most recently as executive VP of merchandising for men’s and kids. She has consulted with Burlington since January 2014.



Looking ahead, Burlington Stores expects efficiencies to offset expenses associated with the wage increases so it will result in a P&L-neutral event. During the full fiscal year, the retailer anticipates net sales to rise 6%-7% and same-store sales to grow 2%-3%. For the second quarter, Burlington Stores expects net sales to rise 7%-8% and same-store sales to increase 3%-4%.



“While our same-sales were positive for the ninth consecutive quarter, we were negatively impacted by the timing of IRS tax refunds, lower markdown sales due to significantly less markdown inventory, increased store closures due to weather, and receipt flow issues in three key Easter businesses,” said Tom Kingsbury, chairman and CEO. “With that said, I am optimistic about our business as comparable store sales have accelerated and we are in a great inventory position to take advantage of the many opportunities we see in the market place.”



In other activities, the board of directors authorized a $200 million share buyback program.