Burlington, New Jersey — During the second quarter, Burlington Stores Inc. achieved results that above their expectations due to high visitation and conversion rates.
On top of a 9% boost in the same quarter last year, sales increased 13% to $2.46 billion, propelled by both comp growth and new stores. The bargain chain had 1,057 sites at the end of the quarter, having added 36 net new stores.
Sales at the same store rose by 5%. During this morning’s quarterly review call, CEO Michael O’Sullivan informed investors that comp growth in both home and clothing was up single digits, in line with the chain as a whole. He claimed that seasonal classes saw particularly high sales.
Strong sell-throughs on full-price products were also observed by the company, which O’Sullivan credited to “really sharp value on out-of-the-gate pricing.” Comp was up 7% on full-price sales.
Executives stated that trade-down buyers are intensely focused on value, despite the difficulties Burlington’s core lower-class clientele continues to face. The average basket was flat despite an increase in traffic and conversion because fewer goods were added to the basket to counteract the rising AURs.
O’Sullivan stated, “As an off-pricer retailer, our playbook is to wait, read the trends, and then chase.”
Burlington increased its profitability and margin projections for the entire year today, although it kept its comparable store sales outlook for the second half at 0% to 2% to grow.
In addition to the 10% growth from the prior fiscal year, total revenues are predicted to rise by 9% to 10% for the entire year. In addition to the 4% growth in the previous fiscal year, a 2%–3% gain in FY comps is anticipated.
Burlington anticipates moving about thirty units and opening 100 net new stores this year. In their first year of operation, new stores typically bring in about $7 million in sales. According to O’Sullivan, investors were informed today that new outlets have been exceeding that criteria.
