It was a mixed first quarter for Burlington Stores, as the off-price retailer saw its net sales increase while net income declined.
Total sales increased 7.3% to $1.629 billion, while comparable store sales increased 0.1%. New and non-comparable stores contributed an incremental $121 million in sales during the quarter.
Net income decreased 5.8% to $78 million, or $1.15 per share versus $1.20 per share last year, and adjusted net income decreased 2% to $85 million, or $1.26 per share, versus $1.26 last year. The slight decrease in adjusted net income was driven primarily by higher freight expense and deleverage on fixed expenses, the company said.
For the second quarter of fiscal 2019, the company expects total sales to increase in the range of 8% to 9%; and comparable store sales to increase 1% to 2%.
Tom Kingsbury, CEO, Burlington, said, “While our first quarter sales results came in at the low end of our expectations, our disciplined expense management enabled us to exceed the high end of our recently updated adjusted earnings per share guidance. Although we saw strength in our children’s apparel, baby depot and home businesses, we remain very focused on improving our underperforming ladies apparel business. We were also pleased to be able to return $123 million to our shareholders through share repurchases during the first quarter.”