Fresh start for Burlington in 2015
After posting stronger than expected holiday sales, Burlington Stores Inc. has named a new chief financial officer.
Marc Katz, formerly the company’s EVP of merchandise support and information technology, is replacing Todd Weyhrich, who retired this month.
“We are extremely excited to have Marc Katz as our next CFO,” Burlington CEO Thomas A. Kingsbury said. “Marc has driven a number of key priorities, including a near doubling of our inventory turns and building the planning and allocation infrastructure that has enabled our improved execution of the off-price model. Marc has demonstrated deep financial expertise and a strong ability to drive cost and efficiency across the business, which will be a tremendous asset as we continue our efforts to expand our operating margins.”
The off-price retailer also said it has increased sales and earnings guidance for the January quarter, citing better-than-expected sales for the holiday season. Burlington expects same-store sales to increase 5% to 5.5% in the quarter, compared with the previous outlook of 3% to 4%. The company projected net sales to rise 9.6% to 10.1%, above its previous estimate of 7.2% to 8.2% growth. The company expects to report earnings, excluding items, of $1.30 to $1.32 a share, up from a previous view of $1.25 to $1.28.
For the period ended Nov. 1, sales at existing locations increased 5.2%, topping the company's September estimate for 3% to 4% growth. Net sales rose 8.7% to $1.16 billion. Overall, the company posted a loss of $34.2 million, compared with a loss of $16.9 million a year earlier. But the quarter included an income-tax charge of $24 million, compared with $7.7 million a year earlier.
Burlington operates a national chain of off-price retail stores offering ladies’, men’s and children’s apparel and accessories, home goods, baby products and coats. The company currently has 503 stores in 44 states and Puerto Rico.
Burlington has experienced a turnaround in recent years, with sales rebounding following the financial crisis and the company returning to public markets last October.