Burlington Stores raised its sales outlook for the year as the off-price retailer reported strong sales and earnings in its third quarter.
Total sales for the third quarter ended November 3, 2018, increased 13.7% to $1.6 billion. New and non-comparable stores contributed an incremental $128 million in sales during the quarter. Comparable store sales increased 4.4%.
Net income increased 71% over the prior year period to $77 million, or $1.12 per diluted share versus $0.65 last year. Adjusted net income increased to $83 million, or $1.21 per diluted share, versus $0.70 last year.
Tom Kingsbury, CEO, Burlington, said, “We are very pleased with our third quarter results, driven by our 4.4% comparable sales increase, 13.7% overall sales growth, and an 80 basis point adjusted EBIT margin improvement. These sales and margin results drove a 73% increase in adjusted EPS in the third quarter, well ahead of our guidance. I would like to thank our store, supply chain and corporate teams for contributing to these strong results.”
In terms of its guidance, Burlington said it raised its sales outlook for the fiscal year, expecting total sales to increase in the range of 10.9% to 11.2%, excluding the 53rd week impact in 2017. This assumes shifted comparable store sales to increase in the range of 2% to 3% for the fourth quarter of fiscal 2018, resulting in a full year shifted comparable store sales increase of 3.4% to 3.7%.