Burlington Stores, Inc. (BURL): history, ownership, mission, how it works & makes money

A Brief History of Burlington Stores, Inc.

Company Overview

Burlington Stores, Inc. (NYSE: BURL) is a national off-price retailer that offers a wide range of merchandise, including apparel, home goods, and other consumer products. The company operates over 900 stores across the United States and has gained recognition for its value proposition, catering primarily to budget-conscious consumers.

Financial Performance

As of August 3, 2024, Burlington Stores reported net sales of approximately $4.82 billion for the first half of Fiscal 2024, representing an increase of 12.0% compared to $4.30 billion during the first half of Fiscal 2023. This growth was driven by a 3% increase in comparable store sales and the addition of 118 net new stores since the end of the second quarter of Fiscal 2023.

Key Financial Metrics

Debt and Liquidity

As of August 3, 2024, Burlington Stores had total debt obligations of approximately $1.38 billion, which includes $929 million under its Term Loan Facility and $453.2 million of Convertible Notes. The average interest rate on the Term Loan Facility was reported at 7.4% for the second quarter of Fiscal 2024.

Cash Flow and Capital Expenditures

During the six-month period ended August 3, 2024, Burlington Stores used $362.3 million in investing activities, primarily due to capital expenditures related to new store openings and supply chain improvements. The company expects to spend approximately $750 million in capital expenditures for Fiscal 2024, including around $340 million on store-related expenditures.

Recent Developments

In Fiscal 2023, Burlington acquired 64 store leases from Bed Bath & Beyond, with plans to open the remaining stores in the third quarter of Fiscal 2024. This acquisition has significantly impacted the company’s operational footprint.

Stock Performance

Burlington Stores has been actively repurchasing shares, with 581,746 shares repurchased for $124.6 million during the first half of Fiscal 2024. As of August 3, 2024, the company had $380.5 million remaining under its share repurchase authorization.

Conclusion

As of 2024, Burlington Stores continues to navigate the competitive retail landscape effectively, leveraging its off-price model to drive sales growth and enhance shareholder value.

A Who Owns Burlington Stores, Inc. (BURL)

Major Shareholders

As of 2024, the major shareholders of Burlington Stores, Inc. (BURL) include institutional investors and company insiders. The following table outlines the top shareholders and their respective ownership percentages:

Insider Ownership

Insider ownership is also significant in Burlington Stores, Inc. The following individuals are noted for their substantial shareholdings:

Stock Performance

Burlington Stores, Inc. has experienced varying stock performance over the past year. The current stock price is approximately $225.00 as of August 2024, reflecting an increase of 20% year-to-date.

Recent Transactions

In recent months, Burlington Stores has engaged in share repurchase programs, enhancing shareholder value. The following table summarizes the share repurchase activity:

Burlington Stores, Inc. (BURL) Mission Statement

Corporate Mission Statement

Burlington Stores, Inc. is dedicated to providing customers with high-quality, branded apparel at affordable prices. The company aims to deliver a compelling shopping experience by offering a wide selection of merchandise, including clothing, footwear, and home goods, while maintaining a focus on exceptional customer service.

Recent Financial Performance

As of the second quarter of Fiscal 2024, Burlington Stores reported significant financial growth. The company achieved net sales of approximately $2.46 billion, an increase of 13.4% compared to the same period in the previous year. This growth was primarily driven by a 5% increase in comparable store sales and the addition of 118 net new stores since the end of the second quarter of Fiscal 2023 .

Key Financial Metrics

Sales and Store Expansion

Burlington Stores has been actively expanding its footprint, opening 76 new stores in the first half of Fiscal 2024. The total store count reached 1,057 locations as of August 3, 2024. The company plans to open approximately 100 net new stores for the entirety of Fiscal 2024 .

Capital Expenditures and Investments

For the six months ended August 3, 2024, Burlington Stores reported capital expenditures of approximately $360.1 million, with an estimated total of $750 million planned for the fiscal year.

Share Repurchase Program

As of August 3, 2024, Burlington Stores had repurchased 581,746 shares of its common stock for a total of $124.6 million under its existing share repurchase program, which has an additional $380.5 million remaining for future buybacks.

Conclusion

Through its strategic initiatives, Burlington Stores continues to enhance its market presence while delivering value to its customers and shareholders. The company's mission to provide high-quality products at affordable prices remains at the core of its operations.

How Burlington Stores, Inc. (BURL) Works

Company Overview

Burlington Stores, Inc. (BURL) operates as a national off-price retailer of apparel and home products. As of August 3, 2024, the company operates 1,057 stores across the United States and Puerto Rico, offering a wide selection of branded and designer merchandise at discounted prices.

Financial Performance

For the second quarter of Fiscal 2024, Burlington reported net sales of $2,461.2 million, an increase of approximately 13.4% compared to the same period in the prior year. The increase was driven by a 5% rise in comparable store sales and the addition of 118 net new stores since the end of the previous fiscal year.

Operational Efficiency

Burlington's operational strategy focuses on efficient supply chain management and cost control. Selling, general and administrative (SG&A) expenses decreased as a percentage of net sales due to improved product sourcing costs and supply chain efficiencies. These initiatives contributed to a decrease in overall costs and an increase in profitability.

Capital Expenditures

For the first half of Fiscal 2024, Burlington's capital expenditures amounted to $360.1 million, with projected total capital expenditures for the year expected to be approximately $750 million. This includes investments in new stores, remodels, and supply chain enhancements.

Debt and Liquidity

As of August 3, 2024, Burlington reported total debt of $1,385.8 million. The average interest rate on the Term Loan Facility was 7.4%. Liquidity remains a focus, with cash and cash equivalents of $659.9 million, allowing the company to manage its operational and capital needs effectively.

Store Expansion and Strategy

Burlington plans to continue its aggressive expansion strategy, aiming to open approximately 100 net new stores during Fiscal 2024. The company also emphasizes a flexible buying strategy, allowing it to respond quickly to changing market conditions and consumer preferences.

Tax and Income

Income tax expense for the second quarter of Fiscal 2024 was $25.9 million, with an effective tax rate of 26.0%. This reflects an increase in pre-tax income compared to the previous year.

How Burlington Stores, Inc. (BURL) Makes Money

Business Model

Burlington Stores, Inc. operates as an off-price retailer, providing a wide range of merchandise, including apparel, home goods, and accessories at discounted prices. The company focuses on offering brand-name products at significant savings, targeting value-conscious consumers.

Revenue Sources

The primary source of revenue for Burlington Stores is through the sale of merchandise in its stores. For the six months ended August 3, 2024, Burlington reported net sales of approximately $4.82 billion, which represents a 12% increase compared to the same period in the prior year .

Comparable Store Sales Growth

Comparable store sales increased by 3% for the first half of Fiscal 2024, and by 5% in the second quarter compared to the same quarter of the previous year .

Cost of Sales

For the first half of Fiscal 2024, the cost of sales was approximately $2.73 billion, representing 56.8% of net sales, a decrease from 58.0% in the prior year .

Gross Margin

The gross margin increased to 43.2% for the six months ended August 3, 2024, up from 42.0% in the prior year, driven primarily by decreased markdowns and freight costs .

Selling, General and Administrative Expenses (SG&A)

SG&A expenses totaled approximately $1.69 billion for the first half of Fiscal 2024, representing 35.1% of net sales, a decrease from 35.6% in the previous year .

Net Income

Burlington Stores reported net income of $152.3 million for the first half of Fiscal 2024, up from $63.6 million for the same period in the prior year .

Adjusted EBITDA

Adjusted EBITDA for the six months ended August 3, 2024, was approximately $413.2 million, compared to $298.1 million in the same period of the previous year .

Store Expansion

As of August 3, 2024, Burlington operated 1,057 stores, with plans to open approximately 100 net new stores during Fiscal 2024 .

Capital Expenditures

Burlington Stores expects capital expenditures of approximately $750 million in Fiscal 2024, including approximately $340 million for new stores and remodels .

Share Repurchase Program

During the first half of Fiscal 2024, Burlington repurchased 581,746 shares of common stock for $124.6 million, with $380.5 million remaining under its share repurchase authorization .