Burlington Stores (BURL) Tops Q1 EPS by 9c, Slight Miss on Revenues; Raises FY17 EPS Outlook

Burlington Stores (NYSE: BURL) reported Q1 EPS of $0.79, $0.09 better than the analyst estimate of $0.70. Revenue for the quarter came in at $1.35 billion versus the consensus estimate of $1.36 billion.

GUIDANCE:

Burlington Stores sees FY2017 EPS of $3.86-$3.96, versus the consensus of $3.90.

Full Year Fiscal 2017 and Second Quarter 2017 Outlook

For the full Fiscal Year 2017 (the 53-weeks ending February 3, 2018), the Company now expects:

• Total sales to increase in the range of 7.3% to 8.1%, including 1.4% from the 53rd week;
• Comparable store sales 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;
• Interest expense of approximately $57 million;
• Adjusted Net Income per Share in the range of $3.86 to $3.96, utilizing a fully diluted share count of approximately 71.3 million, as compared with $3.24 in Fiscal 2016. This includes an expected benefit from the 53rd week of approximately $0.04 per share, and an anticipated increase of approximately $0.10 per share resulting from the recent change in accounting rules for share-based compensation.
• Adjusted EBITDA margin expansion to increase 50 to 60 basis points;
• To open 30 net new stores; and
• Net Capital Expenditures of approximately $200 million.

For the second quarter of Fiscal 2017 (the 13 weeks ending July 29, 2017), the Company expects:

• Total sales to increase in the range of 6.7% to 7.7%;
• Comparable store sales to increase in the range of 2% to 3% on top of a 5.4% increase during the second quarter of Fiscal 2016; and
• Adjusted Net Income per Share in the range of $0.46 to $0.50, inclusive of $0.02 benefit from the recent accounting change for share-based compensation and utilizing a fully diluted share count of approximately 71.2 million shares, as compared to $0.39 last year.

Raises Fiscal Year 2017 Earnings Outlook

• On a GAAP basis, total sales rose 5.0%, net income increased 40%, diluted net income per share rose 40% and merchandise inventories decreased 10%
• On a Non-GAAP basis,
• Comparable store sales increased 0.5%
• Adjusted EBITDA increased 13% to $137 million, 70 basis points as a percent of sales
• Adjusted Net Income per Share rose 39% to $0.79 (inclusive of the change in accounting rules for share-based compensation)
• Comparable store inventory decreased 7%

For earnings history and earnings-related data on Burlington Stores (BURL) click here.

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