Burlington Stores to open 100 stores in 2024; posts strong holiday results

Burlington Stores reported strong fourth-quarter results that topped expectations and issued upbeat sales guidance for its current fiscal year.

In a statement, chairman and CEO Michael O’Sullivan noted that the company hit a major milestone in 2024, opening its 1,000th store, and significantly strengthened its pipeline for new store openings through its acquisition of Bed Bath & Beyond leases. Burlington expects to open approximately 100 net new stores in 2024. 

Total revenue increased 14% to $3.12 billion for the 14-week period ended Feb. 3 (compared to the 13-week period comprising the year-ago quarter). On a 13-week basis, total sales rose 9%  to $2.98 billion, while comparable store sales edged up 2%.  

Net income rose to $227.5 million, or $3.53 per share, on a 14-week basis from $185.2 million, or $2.83 per share, in the 13-week year-ago period.   On a 13-week basis, adjusted net income, excluding approximately $4 million of costs related to the acquisition of Bed Bath & Beyond leases, was $238 million, or $3.69 per share.  versus $194 million, or $2.96 per share in the prior-year period. . 

Gross margin improved to 42.6% from 40.7%. 

For the full year, total revenue increased to $9.708 billion from $8.64 billion in the year-ago period. 

“Our performance in the fourth quarter exceeded our guidance,” stated CEO Michael O’Sullivan. “This completed a strong year for our business. On a 52-week basis, comparable store sales grew 4%, adjusted operating margin improved 130 basis points, and adjusted EPS increased 46%.”

Looking ahead, O’Sullivan, citing “uncertainty in the external environment,” said the company is planning business flexibly, and is  ready to chase if the sales trend is stronger.

“Although it makes sense to be cautious in the short term, we are very excited about the long-term outlook for our business,” he said. “As discussed in November, we believe we have the potential to reach $16 billion in total sales and $1.6 billion in adjusted operating income in the next five years.”

For fiscal 2024, Burlington expects to open approximately 100 net new stores.  It forecasts adjusted earnings of $7.00 to $7.60 per share, with total sales growth of 9% to 11%.  Capital expenditures, net of landlord allowances, are expected to be approximately $750 million.

At the end of its fiscal year, the company operated 1007 stores in 46 states, Washington D.C. and Puerto Rico, principally under the name Burlington Stores.