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Feb 01

Burlington Q4 2024 Earnings Report

Burlington reported strong Q4 2024 results, with a 10% sales increase and 6% comparable store sales growth.

Key Takeaways

Burlington Stores reported Q4 2024 revenue of $3.27 billion, a 10% increase on a 13-week basis. Comparable store sales grew 6%, exceeding guidance. Net income rose to $261 million, with diluted EPS of $4.02, while Adjusted EPS was $4.13, a 12% increase. Gross margin improved to 42.9% due to higher merchandise margin and lower freight costs. The company ended the quarter with $994 million in cash and repurchased 218,443 shares for $61 million.

Total sales increased 10% on a 13-week basis to $3.27 billion.

Comparable store sales rose 6%, exceeding guidance of 0% to 2%.

Adjusted EPS increased 12% to $4.13, driven by higher sales and margin expansion.

The company repurchased 218,443 shares for $61 million in Q4.

Total Revenue
$3.27B
Previous year: $3.13B
+4.7%
EPS
$4.13
Previous year: $3.69
+11.9%
Comparable Store Sales
6%
Total Stores
1.11K
Gross Profit
$1.4B
Previous year: $1.12B
+25.5%
Cash and Equivalents
$995M
Previous year: $873M
+14.0%
Total Assets
$8.77B
Previous year: $7.27B
+20.6%

Burlington

Burlington

Forward Guidance

Burlington expects continued sales growth in FY 2025, targeting a 6% to 8% increase in total sales and 0% to 2% comparable store sales growth. The company plans to open 100 new stores and increase Adjusted EBIT margin by up to 30 basis points.

Positive Outlook

  • Total sales expected to increase by 6% to 8% in FY 2025.
  • Comparable store sales projected to grow 0% to 2%.
  • Plan to open approximately 100 net new stores.
  • Capital expenditures expected to be around $950 million.
  • Adjusted EPS projected between $8.70 and $9.30.

Challenges Ahead

  • Uncertain macroeconomic environment could impact consumer demand.
  • Adjusted EBIT margin increase expected to be modest (0 to 30 basis points).
  • SG&A expenses may rise due to store expansions and strategic investments.
  • Higher capital expenditures may impact near-term free cash flow.
  • Potential risks from supply chain disruptions and inflationary pressures.