Burlington Stores Q4 Adj Profit Tops View, Revenues Meet

(RTTNews) - Off-price retailer Burlington Stores, Inc. (BURL), which went public in October 2013, reported Thursday a profit for the fourth quarter that declined from last year, despite revenue growth, reflecting higher income tax expenses.

Pro Forma adjusted earnings per share topped analysts' expectations, while quarterly revenues matched their estimates. The company also provided earnings guidance for the first quarter and full-year 2014, below Street view.

"We are extremely pleased with our results in the fourth quarter and for the full year, given our strong sales and bottom line performance," President and CEO Tom Kingsbury said in a statement.

The Burlington, New Jersey-based company reported net income of $63.58 million for the fourth quarter, lower than $67.95 million in the prior-year quarter.

Excluded certain items, adjusted net income for the quarter was $81.02 million, compared to $82.41 million in the year-ago quarter. Pro Forma adjusted net income per share was $1.07, compared to $1.15 last year.

On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $1.03 per share for the quarter. Analysts' estimates typically exclude one-time items.

Total revenues for the quarter increased to $1.34 billion from $1.33 billion in the same quarter last year, and matched eight Wall Street analysts' consensus estimate of $1.34 billion.

Net sales grew 1.3 percent to $1.33 billion from $1.32 billion in the prior-year quarter, which included about $54 million associated with additional 53rd week. Comparable store sales for the quarter increased 4.0 percent.

Gross margin for the quarter expanded 30 basis points, primarily due to improved merchandising margins, and selling and administrative expenses, exclusive of advisory fees, as a percentage of net sales increased 20 basis points to 28.0 percent from last year. Meanwhile, income tax expense increased to $41.19 million from $35.83 million last year.

Looking ahead to the first quarter of fiscal 2014, the company expects adjusted earnings in a range of $0.19 to $0.23 per share, on projected comparable store sales growth of 2 to 3 percent. Analysts expect the company to report earnings of $0.23 per share and revenues of $1.14 billion for the quarter.

For fiscal 2014, Burlington Stores expects adjusted earnings in the range of $1.25 to $1.35 per share, on anticipated net sales growth of 5.8 to 6.8 percent and comparable store sales growth of 2 to 3 percent.

Street currently is looking for full-year 2014 earnings of $1.38 per share on annual revenues of $4.74 billion.

The company also maintained its previously introduced long term targets, on an annual basis, of comparable store sales growth of 2 to 3 percent and adjusted Net income growth of more than 20 percent.

"We remain focused on delivering great value, brands and freshness to our customers every day as well as executing our growth initiatives to improve comparable store sales, expand our retail store base and enhance our operating margins in Fiscal 2014 and beyond," Kingsbury added.

BURL closed Wednesday's regular trading session at $25.90, up $0.19 on a volume of 0.54 million shares.