Burlington, New Jersey – In the third quarter, Burlington Stores saw a significant increase in sales, but comparable store sales were weak.
In addition to the 12% growth in the previous quarter, total sales increased 11% to $2.5 billion. Compared to previous year’s Q3 increase of 6%, comp increased by 1%.
“We had a great start to our third quarter comp trend, but as the weather warmed up starting in mid-September, our sales momentum slowed. About 15% of sales in the third quarter were in cold weather categories, according to CEO Michael O’Sullivan.
Same-store sales increased 4% when cold weather categories like coats, boots, and fleece were excluded. He said this was “consistent with the trend that we have seen in our business since March.”
“November is off to a great start,” Sullivan continued.
New Burlington stores accounted for the majority of the company’s Q3 growth. This year, the company has opened 147 new locations, including 31 relocations and 116 new stores. The off-price anticipates finishing the fiscal year with 101 net new stores, the majority of which will be in Burlington’s 25,000-square-foot prototype, in addition to the anticipated closure of 15 stores.
According to O’Sullivan, “we are making dramatic progress in transforming our chain.”
In their first year of operation, new stores bring in roughly $7 million in sales, and those that launched this year are performing far better than anticipated.
In 2025, the firm intends to open 100 net new stores.
The gross margin rate as a proportion of net sales for the quarter that ended on November 2 was 43.9%, up 70 basis points from 43.2% during the same period last year. While freight expenses improved by 20 basis points, the merchandise margin increased by 50 basis points, mostly due to higher markup and decreased markdowns.
Net income increased to $91 million, a nearly 86% increase.
