Burlington Stores Inc (BURL) Q1 2024 Earnings Report

- Burlington Stores reported solid QQ1 2024 results with total sales of $2.361B, up 11% year over year, and comp store sales increasing 2% versus guidance of flat to up 2%. The March–April period delivered stronger momentum (combined comp up 4%) as tax refunds normalized and inventory receipt timing was better, aided by a deliberate shift to flow receipts later in the quarter. Regular-price selling grew 4% for the quarter (6% in March–April), helping faster inventory turns and reduced markdowns.
- Profitability surprised to the upside: gross margin rose 120 basis points to 43.5%, supported by merchandise margin up 90 bps and supply chain leverage (~70 bps, excluding a ~$9M timing shift). EBIT margin expanded 170 bps to 5.7%, and adjusted EPS came in at $1.42, well above the guided range, aided by timing benefits and strong gross margin. The quarter also featured aggressive capital allocation: $63M of share repurchases and a remaining $442M repurchase authorization.
- Management raised full-year guidance and maintained a comp outlook of flat to up 2%, while stepping up expectations for margin and earnings. Full-year revenue is guided to grow 8–10% (slightly below prior 9–11% range due to later store openings), with full-year adjusted EBIT margin up 40–60 bps and EPS of $7.35–$7.75. Q2 guidance remains flat to +2% comps and 9–11% total sales growth, with Q2 EPS guided to $0.83–$0.93 (roughly offset by a ~$0.09 “timing” headwind from Q1). The company continues to target long-term growth of $16B in revenue and $1.6B in operating income over the next five years.
- Burlington is navigating higher leverage in its balance sheet but preserves liquidity and a sizable buyback program, while executing a strategic real estate plan that includes approximately 150–200 store relocations/closures over five years. The Bed, Bath & Beyond lease integration remains a one-time drag in 2024 but is largely behind the company moving forward.