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Category: Stock Market and Burlington
Date: 27 November 2019 Stock Price: $225.97 We take a look at the 3rd quarter earnings for their 2019 fiscal year of Burlington Stores Inc an off-price fashion retailer with over 600 stores in 35 states.
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About Burlington Stores Inc.
Burlington Stores, Inc., headquartered in New Jersey, is a nationally recognized off-price retailer with Fiscal 2018 net sales of $6.6 billion. The Company is a Fortune 500 company and its common stock is traded on the New York Stock Exchange under the ticker symbol “BURL.” The Company operated 691 stores as of the end of the second quarter of Fiscal 2019, inclusive of an internet store, in 45 states and Puerto Rico, principally under the name Burlington Stores. The Company’s stores offer an extensive selection of in-season, fashion-focused merchandise at up to 60% off other retailers' prices, including women’s ready-to-wear apparel, menswear, youth apparel, baby, beauty, footwear, accessories, home and coats.
Overview of Burlington Stores' 3rd quarter 2019 earnings report
The data below refers to the latest quarter's data unless specified otherwise
- Total Revenue: $1.781 billion (up from $1.634 billion from the same quarter of the previous year)
- Total revenue increased by 8.9% over the last 12 months
- Cost of goods sold : $1.662 billion (up from $1.548 billion for the same quarter of the previous year)
- Cost of goods sold increased by 7.4% over the last 12 months
- Net income: $96.459 million (up from from $76.849 million for the same quarter of the previous year)
- Diluted earnings per share: $1.44 (up from $1.12 for the same quarter of the previous year)
- PE ratio of Burlington Store: 28.9
- Diluted weighted-average shares outstanding: 67.159 million (down -2.1% from 68.628 million for the same quarter of the previous year)
- Cash and cash equivalents: $140.514 million
- Cash and cash equivalents per share: $2.09
- Cash and cash equivalents makes up 0.92% of Burlington Stores current market capital
- Cash and cash equivalents makes up 2.6% of Burlington Stores total assets
- Inventories: $1.004 billion (up from $1.056 billion for the same quarter of the previous year)
- Inventories makes up 18.2% of Burlington Stores total assets
- Inventories declined by -5.2% over the last year
- Total shareholders' equity of Burlington Stores Inc.: $391.588 million
- Shareholders' equity per share: $5.83
- Burlington Stores is trading at 38.7 times its stockholders equity per share
- Accounts receivable: $117.493 million (up from $86.069 million for the same quarter of the previous year)
- Accounts receivable makes up 2.1% of Burlington Stores total assets
- Accounts receivable grew by 36.5% over the last year
- Cash generated from operations (for the 9 months of fiscal 2019): $476.873 million
- Cash generated from operations per share (for the 9 months of fiscal 2019): $7.10
Burlington Stores' management commentary on the results and earnings guidance
BURLINGTON, N.J., Nov. 26, 2019 (GLOBE NEWSWIRE) -- Burlington Stores, Inc. (NYSE: BURL), a nationally recognized off-price retailer of high-quality, branded apparel at everyday low prices, today announced its results for the third quarter ended November 2, 2019.
Michael O’Sullivan, CEO, stated, “We are pleased with our third quarter results, driven by a solid 2.7% comparable store sales increase, which was up against our most challenging comparison of the year, a 4.4% quarterly comparable store sales increase in Fiscal 2018. Overall we generated an 8.6% sales increase, which resulted in a 90 basis point increase in Adjusted EBIT margin, and a 28% increase in Adjusted EPS, well ahead of our guidance. In addition, our disciplined inventory management continued through the third quarter, as our comparable store inventory decreased 4%, enabling us to continue to take advantage of the abundant values available in the marketplace.”
Michael O’Sullivan, CEO, stated, “We are pleased with our third quarter results, driven by a solid 2.7% comparable store sales increase, which was up against our most challenging comparison of the year, a 4.4% quarterly comparable store sales increase in Fiscal 2018. Overall we generated an 8.6% sales increase, which resulted in a 90 basis point increase in Adjusted EBIT margin, and a 28% increase in Adjusted EPS, well ahead of our guidance. In addition, our disciplined inventory management continued through the third quarter, as our comparable store inventory decreased 4%, enabling us to continue to take advantage of the abundant values available in the marketplace.”
Share Repurchase Activity
Full Year Fiscal 2019 and Fourth Quarter 2019 Outlook
For Fiscal 2019 (the 52-weeks ending February 1, 2020), the Company now expects:
For the fourth quarter of Fiscal 2019 (the 13 weeks ending February 1, 2020), the Company expects:
- During the third quarter, the Company repurchased 223,009 shares of its common stock for $43 million. As of the end of the third quarter, the Company had $482 million remaining on its current share repurchase authorization.
Full Year Fiscal 2019 and Fourth Quarter 2019 Outlook
For Fiscal 2019 (the 52-weeks ending February 1, 2020), the Company now expects:
- Total sales to increase in the range of 8.8% to 9.1%, on top of a 10.7% increase in Fiscal 2018; this assumes comparable store sales to increase in the range of 2% to 3% for the fourth quarter of Fiscal 2019, resulting in a full year comparable store sales increase of 2.1% to 2.4% on top of the 3.2% increase during Fiscal 2018;
- Depreciation and amortization, exclusive of favorable lease costs, to be approximately $210 million;
- Adjusted EBIT margin to be up approximately 10 to 20 basis points vs last year;
- Interest expense of approximately $51 million;
- An effective tax rate of approximately 20%;
- To open 51 net new stores, and invest approximately $310 million in Capital Expenditures, net of landlord allowances; and
- Based on third quarter results, Adjusted EPS in the range of $7.28 to $7.33, utilizing a fully diluted share count of approximately 67.3 million, as compared to Fiscal 2018 net income per share of $6.04 and Fiscal 2018 Adjusted EPS of $6.44. This outlook excludes an expected $0.05 per share impact of management transition costs.
For the fourth quarter of Fiscal 2019 (the 13 weeks ending February 1, 2020), the Company expects:
- Total sales to increase in the range of 9% to 10%;
- Comparable store sales to increase 2% to 3%;
- An effective tax rate of approximately 24%; and
- Adjusted EPS in the range of $3.12 to $3.17, which assumes a fully diluted share count of approximately 67.1 million, as compared to Fiscal 2018 fourth quarter net income per share of $2.70 and Fiscal 2018 fourth quarter Adjusted EPS of $2.83. This outlook excludes an expected $0.03 per share impact of management transition costs.
Burlington Stores Inc (NYSE: BURL) stock price history
The image below obtained from Google, shows the stock price history of Burlington Stores Inc. over the last 5 years. And its been a pretty good time for Burlington stockholders with it increasing significantly over the last 5 years. 5 years ago the stock price of Burlington Stores was around $45 a stock and currently its trading at $225.897 a stock. That's a very strong return of 402% provided to Burlington Stores Inc over the last 5 years. And no investor will say no to those kinds of returns.
The stock is also trading at a lot closer to its 52 week high of $229.39 than it is to its 52 week low of $136.30, which is a clear indication that the short term sentiment and momentum of the stock is positive. And this is supported by the fact that Burlington stock jumped 8.5% following the release of their latest earnings report.
The stock is also trading at a lot closer to its 52 week high of $229.39 than it is to its 52 week low of $136.30, which is a clear indication that the short term sentiment and momentum of the stock is positive. And this is supported by the fact that Burlington stock jumped 8.5% following the release of their latest earnings report.
Recent coverage of Burlington
The extract below covers the latest regarding Burlington as obtained from TheStreet.com
Burlington (BURL - Get Report) posted a strong quarter and raised guidance, as the company was able to keep its inventory slim, while some other retailers aren't doing the best job at that. The stock rose 1.32% to $211 a share Tuesday.
Earnings per share came in at an adjusted $1.55 for the third quarter of 2019, beating analysts estimates of $1.41. Total revenue slightly missed Wall Street's expectations, coming in at $1.775 billion versus $1.78 billion. The slight revenue miss was a result of 7 temporary store closures. But the all important same-store-sales came in at 2.7%, beating estimates of 2.6%. Management raised full year 2019 EPS guidance to a range between $7.28 and $7.33, up from a previous ballpark of $7.14 and $7.22. The biggest key was reducing inventory. Higher inventory can add too much supply, damaging the company's ability to maintain strong pricing.
Read the full article here
Burlington (BURL - Get Report) posted a strong quarter and raised guidance, as the company was able to keep its inventory slim, while some other retailers aren't doing the best job at that. The stock rose 1.32% to $211 a share Tuesday.
Earnings per share came in at an adjusted $1.55 for the third quarter of 2019, beating analysts estimates of $1.41. Total revenue slightly missed Wall Street's expectations, coming in at $1.775 billion versus $1.78 billion. The slight revenue miss was a result of 7 temporary store closures. But the all important same-store-sales came in at 2.7%, beating estimates of 2.6%. Management raised full year 2019 EPS guidance to a range between $7.28 and $7.33, up from a previous ballpark of $7.14 and $7.22. The biggest key was reducing inventory. Higher inventory can add too much supply, damaging the company's ability to maintain strong pricing.
Read the full article here
Burlington Stores Inc. (NYSE: BURL) latest stock valuation
So what are Burlington Stores Inc. stock worth based on their latest earnings report? Our valuation models gives a target price (full value price) of $156.40 per Burlington Stores Inc. stock (up slightly from our 2nd quarter 2019 earnings review valuation for Burlington Stores). We therefore feel the stock of Burlington Stores is overvalued
We usually recommend that long term fundamental or value investors to enter a stock at least 10% below our target price (full value price) which in this case is $156.40. So a good entry point would be around $140.80 or below. We expect to see the stock pull back from current levels to closer to our target price in coming weeks and months.
We usually recommend that long term fundamental or value investors to enter a stock at least 10% below our target price (full value price) which in this case is $156.40. So a good entry point would be around $140.80 or below. We expect to see the stock pull back from current levels to closer to our target price in coming weeks and months.
The next earnings release of Burlington Stores
It is expected that Burlington Stores will release their 4th quarter and full fiscal 2019 earnings report towards the end of February 2020