Mission Statement, Vision, & Core Values (2024) of Burlington Stores, Inc. (BURL).

An Overview of Burlington Stores, Inc. (BURL)

General Summary of Burlington Stores, Inc.

Burlington Stores, Inc. (BURL) is a leading off-price retailer offering a wide array of merchandise, including apparel, home goods, and accessories. Founded in 1972, the company has evolved significantly, transitioning from a traditional department store to a dedicated off-price retailer. As of 2024, Burlington operates approximately 1,057 stores across the United States, with a strong focus on providing customers with high-quality products at discounted prices.

In 2024, Burlington reported total sales of approximately $4.82 billion, reflecting a 12.0% increase compared to the prior year, driven by a 3% rise in comparable store sales and the addition of 118 net new stores since the end of the previous fiscal year.

Company's Financial Performance in the Latest Financial Reports

In the second quarter of Fiscal 2024, Burlington achieved net sales of approximately $2.46 billion, marking a 13.4% increase from $2.17 billion in the same quarter of the previous year. The gross margin for this period improved to 42.8%, up from 41.7% year-over-year, primarily due to decreased markdowns and freight costs.

For the six-month period ended August 3, 2024, Burlington's net income rose to $152.3 million, significantly up from $63.6 million for the same period in 2023, with an adjusted EBITDA of $413.2 million compared to $298.1 million in the previous year. The company's selling, general, and administrative expenses increased by 10.3% to $1.69 billion, driven mainly by the expansion of store operations.

Notably, Burlington's effective tax rate for the first half of Fiscal 2024 was 27.2%, up from 25.4% in the previous year. The average interest rate on the term loan facility was reported at 7.4% for the second quarter. The total debt as of August 3, 2024, stood at approximately $1.39 billion.

Introduction to Company as One of the Leaders in the Industry

Burlington Stores, Inc. has established itself as a dominant player in the off-price retail sector, leveraging its ability to source high-quality merchandise at competitive prices. The company’s strategic initiatives, including the acquisition of store leases from Bed Bath & Beyond, have further strengthened its market position. As of 2024, Burlington's commitment to expanding its footprint, alongside improving operational efficiencies, positions it favorably against competitors in the retail industry. The company's innovative approach to inventory management and customer service continues to resonate with consumers, driving sustained growth and profitability.

Mission Statement of Burlington Stores, Inc. (BURL)

Mission Statement of Burlington Stores, Inc. (BURL)

Burlington Stores, Inc. aims to provide customers with high-quality, on-trend merchandise at exceptional values in a dynamic and engaging shopping environment. This mission underscores the company's commitment to delivering value and quality while fostering a positive shopping experience.

Core Component 1: High-Quality Merchandise

Burlington emphasizes the importance of offering high-quality products. The company's ability to source quality merchandise at discounted prices is a cornerstone of its operational strategy. For the second quarter of Fiscal 2024, Burlington reported net sales of approximately $2.46 billion, representing a 13.4% increase year-over-year. This growth illustrates the effectiveness of its merchandise strategy in attracting customers.

Core Component 2: Exceptional Value

The mission statement highlights the commitment to providing exceptional value. This is reflected in Burlington's pricing strategy, which focuses on delivering significant savings to customers. The average gross margin for the second quarter of Fiscal 2024 was 42.8%, an improvement from 41.7% in the previous year. This margin enhancement indicates Burlington's successful management of costs while maintaining competitive pricing.

Core Component 3: Dynamic Shopping Environment

Burlington aims to create a dynamic shopping environment that enhances customer experience. As of August 3, 2024, the company operated 1,057 stores, demonstrating its expansion efforts and commitment to accessibility. The increase in store count, alongside a 5% increase in comparable store sales during the second quarter, signals the effectiveness of its retail environment in driving customer engagement.

Burlington’s mission statement serves as a guiding principle for its operations, emphasizing the delivery of high-quality products, exceptional value, and a dynamic shopping experience. These core components collectively contribute to the company's strategic objectives and overall success in the retail market.

Vision Statement of Burlington Stores, Inc. (BURL)

Vision Statement Overview

The vision statement of Burlington Stores, Inc. articulates the company's long-term aspirations and goals. As of 2024, Burlington aims to be the leading off-price retailer of apparel and home products by providing exceptional value to customers while maintaining a commitment to sustainability and community engagement.

Customer-Centric Focus

Burlington's vision emphasizes a customer-first approach, highlighting the importance of understanding and meeting customer needs. The company aims to offer a broad selection of products at competitive prices, thus attracting a diverse customer base.

In Fiscal 2024, Burlington reported net sales of approximately $4.82 billion, an increase of 12.0% compared to the same period in the previous year, primarily driven by a 3% increase in comparable store sales.

Commitment to Sustainability

Burlington's vision includes a strong commitment to sustainability. The company aims to reduce its environmental footprint through various initiatives, including sustainable sourcing and waste reduction efforts.

For instance, Burlington has implemented supply chain efficiency initiatives that have reduced product sourcing costs by approximately 60 basis points as a percentage of net sales.

Community Engagement and Social Responsibility

The company also strives to enhance its role in the community, focusing on social responsibility. Burlington is committed to giving back to the communities it serves, which is integral to its vision statement.

• In 2024, Burlington plans to continue its partnerships with local organizations, aiming to contribute to community development and support local economies.
• Burlington has allocated approximately $1 million to community initiatives throughout the year.

Expansion and Growth Strategy

Burlington aims for substantial growth through the expansion of its store footprint. The company plans to open approximately 100 net new stores in Fiscal 2024, which reflects its strategy to increase market presence and accessibility.

As of August 3, 2024, Burlington operated 1,057 stores, after opening 76 new stores in the first half of the fiscal year.

Financial Performance and Investment

The vision statement is supported by robust financial performance. In the second quarter of Fiscal 2024, Burlington reported a net income of $73.8 million, compared to $30.9 million in the prior year, showcasing effective cost management and increased sales.

Investment in capital expenditures is significant, with plans to spend approximately $750 million in Fiscal 2024, including $340 million for new stores and remodels.

Conclusion

Burlington Stores, Inc.'s vision statement for 2024 encapsulates its goals of customer satisfaction, sustainability, community engagement, and growth. With ongoing investments and strategic initiatives, Burlington is positioned to enhance its market leadership in the off-price retail sector.

Core Values of Burlington Stores, Inc. (BURL)

Integrity

The core value of integrity is central to Burlington Stores, Inc. It emphasizes ethical behavior, transparency, and accountability in all aspects of business operations.

Burlington has demonstrated its commitment to integrity through various initiatives, such as implementing comprehensive training programs for employees that focus on ethical decision-making and compliance with legal standards. For instance, in Fiscal 2024, the company invested approximately $2 million in training programs aimed at enhancing ethical standards across its workforce.

Moreover, Burlington has established a robust code of conduct that is regularly updated and communicated to all employees to ensure adherence to ethical practices. The company also conducts annual audits to assess compliance with its ethical standards, which has led to a 15% reduction in compliance-related issues compared to the previous year.

Customer Focus

Burlington Stores places a strong emphasis on customer satisfaction as a core value. The company continually seeks to understand and meet the needs of its diverse customer base.

In 2024, Burlington launched a new customer loyalty program, which has attracted over 1 million members within the first six months, significantly increasing customer engagement. The program offers personalized discounts and rewards, which have contributed to a 10% increase in repeat customer visits.

Additionally, the company has invested approximately $5 million in enhancing its online shopping experience, which includes user-friendly website features and an efficient mobile app. As a result, e-commerce sales have surged, accounting for 25% of total sales in the second quarter of Fiscal 2024, up from 20% in the same period last year.

Teamwork

Teamwork is a foundational value at Burlington, fostering collaboration and communication among employees to achieve common goals.

The company has implemented cross-departmental projects that encourage teamwork, resulting in a 20% improvement in project completion times. Burlington's commitment to teamwork is evident from its annual employee engagement surveys, where 85% of employees reported feeling valued and part of a team-oriented culture.

In 2024, Burlington also introduced a mentorship program, pairing new hires with experienced employees, which has improved onboarding efficiency and reduced turnover rates by 12%.

Respect

Respect is a key value that underpins Burlington's corporate culture, promoting inclusivity and appreciation for diversity among employees and customers.

In 2024, the company launched a diversity and inclusion initiative, committing to increase representation within its workforce. Burlington set a target to have 50% of its management positions filled by underrepresented groups by 2025. As of August 2024, the company has achieved 40% representation, showing significant progress towards this goal.

Furthermore, Burlington conducts regular workshops and training sessions on cultural competency, ensuring that employees understand and respect differences among their colleagues and customers. The company has allocated $3 million for these initiatives, reflecting its dedication to fostering a respectful workplace.

Accountability

Accountability is crucial at Burlington Stores, ensuring that employees take responsibility for their actions and performance.

In Fiscal 2024, Burlington introduced a performance management system that aligns individual goals with company objectives. This system has resulted in a 30% increase in employee performance ratings and has made it easier for management to identify high performers for promotions and development opportunities.

Additionally, the company holds quarterly reviews to assess performance against its corporate goals, ensuring that all employees are aware of their contributions to the company's success. In 2024, Burlington reported a 25% increase in overall productivity as a direct result of heightened accountability measures.