Missed Q1 earnings, dismal outlook, CFO appointment: Q1 highlights from Burlington stores

  • Burlington Stores, Inc. BURL announced first-quarter FY22 sales fell 12% year-on-year to $1.93 billion, missing the consensus of $2.04 billion.
  • Same store sales decreased 18%.
  • Gross margin contracted by 230 basis points Y/Y to 41%.
  • Total costs and expenses fell 3.5% year-on-year to $1.9 billion.
  • Adjusted EBIT was $59 million versus $237.88 million a year ago. Adjusted EBITDA fell 57.3% to $125.4 million.
  • Adjusted EPS of $0.54 missed analyst consensus of $0.65.
  • The company held $633.6 million in cash and cash equivalents as of April 30, 2022.
  • “The main driver of this lost sales was that inventory was too low and out of balance in February and March,” CEO Michael O’Sullivan said.
  • He continued, “We had anticipated 2022 to be a tough year in retail, but the economic environment, particularly the impact of inflation on low-income shoppers, is having a bigger impact than expected. We have lowered our sales outlook.
  • Outlook: Burlington awaits fiscal year 22 Adjusted EPS of $6.00 to $7.00 versus Street View of $7.20.
  • It sees FY22 comparable store sales decline from -9% to -6%, on top of the 15% increase during FY21.
  • For the second quarter, BURL expects adjusted EPS of $0.18 – $0.31 vs consensus $1.07.
  • Appointment of the financial director: BURL has appointed Kristin Wolfe as Chief Financial Officer, effective on or about August 1, 2022. As previously announced, the employment of John Crimmins, the company’s current Chief Financial Officer, will end on August 31, 2022.
  • Price action: BURL shares are trading down 1.47% to $154.00 premarket when last checked on Thursday.
  • Photo Via Wikimedia Commons

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