For its third quarter, Burlington Stores, Inc. reported a total sales increase of 30 percent compared to the third quarter of fiscal 2019 to 2,300 million dollars, while comparable store sales increased 16 percent.
Commenting on the third quarter results, Michael O’Sullivan, the company’s CEO, stated: With Total Sales up 30 percent in Q3, and up 32 percent YTD, clearly we are taking significant market share. As predicted, freight and supply chain headwinds pressured margins in Q3. We fully expect these headwinds to moderate over time and, as they do, this should generate very attractive off-price buying opportunities as well as significantly lower expenses.”
Highlights of Burlington Stores’ Q3 and nine months results
Gross margin rate was 41.4 percent versus 42.4 percent for the third quarter of fiscal 2019, a decrease of 100 basis points. Net income was 14 million dollars or 20 cents per share against 96 million dollars or 1.44 dollars per share for the same quarter of fiscal 2019. Adjusted net income was 93 million dollars or 1.36 dollars per share versus 103 million dollars or 1.53 dollars per share.
Adjusted EBITDA was 205 million dollars compared to 192 million dollars in the third quarter of 2019, a decrease of 190 basis points as a percentage of sales. Adjusted EBIT was 140 million dollars, flat versus the third quarter of fiscal 2019, a decrease of 180 basis points as a percentage of sales.
For the first nine months, the company’s total sales increased 32 percent compared to the first nine months of fiscal 2019. Net income increased 11 percent to 287 million dollars or 4.21 dollars per share, an increase of 10 percent.
Adjusted EBIT increased 49 percent or 186 million dollars compared to the first nine months of fiscal 2019, to 561 million dollars, an increase of 100 basis points as a percentage of sales. Adjusted net income of 402 million dollars was up 44 percent against the prior period, while adjusted EPS was 5.89 dollars compared to 4.15 dollars in the prior year period, an increase of 42 percent.