Burlington Stores reported strong second quarter results, as the off-price retailer saw a jump in sales, comps and net income.
In the second quarter ended July 29, total sales increased 8.6% over the prior year period to $1.36 billion. This growth was driven by an increase of $70 million from new and non-comparable stores, as well as a 3.5% increase in comparable store sales. The 3.5% comparable store sales increase was on top of a 5.4% increase in the second quarter of fiscal 2016.
Net income increased over the prior year period to $47 million, or $0.66 per diluted share versus $0.28 last year, and adjusted net income increased to $51 million, or $0.72 per diluted share versus $0.39 last year. These improvements were driven primarily by top line growth and margin expansion, share repurchases since the end of the second quarter last year, and the $7 million benefit from the adoption of the new share-based compensation accounting, the company said.
Tom Kingsbury, CEO, Burlington, stated, “We are extremely pleased to report strong second quarter results, driven by a 3.5% comparable store sales increase, which was on top of a 5.4% comparable increase in last year’s second quarter. Our overall 8.6% sales growth, along with our 140 basis point adjusted operating margin improvement, enabled the company to drive an 85% increase in adjusted EPS in the second quarter, well ahead of our guidance. Our inventories are fresh, we are well positioned for back to school, and we have significant open-to-buy entering the third quarter as opportunities remain plentiful.”