Off-price retailer posts strong Q1

As many mall-based specialty retailers continue to struggle, off-pricers continue to flourish and expand. And Burlington Stores is no exception.



Burlington's net income in the quarter, ended April 29, increased to $52.4 million, or $.73 per diluted share, which beat Wall Street expectations of 70 cents. In the year-ago period, the retailer reported net income of $37.5 million.



The company’s revenue rose 5% to $1.35 billion. The increase just missed analysts’ forecast of $1.36 billion. Same-store sales rose 0.5%



Burlington, which operated 596 stores at the end of the quarter, expects to add 30 net new stores in its fiscal year. The retailer has said it plans to eventually expand to 1,000 locations.



“We are pleased with our expansion in operating margin as well as our 39% increase in adjusted net income per share in the first quarter," said Tom Kingsbury, CEO, Burlington, which operates 596 stores. "As previously disclosed, our sales performance was negatively impacted by the delayed tax refunds experienced in February. Importantly, momentum built throughout the quarter with combined March and April comparable sales rising 4.5%. It is worth noting that May is off to a solid start.”



Looking out to the rest of 2017, which has an additional operating week, the chain expects total sales to increase in the range of 7.3% to 8.1%, including 1.4% from the 53rd week. Same-store sales are expected to increase in the range of 2% to 3% for the balance of the year resulting in a full year comparable store sales increase of 1.6% to 2.4% on top of the 4.5% increase during fiscal 2016. It is also on track to open 30 new stores, according to the company.