Off-price retailer Burlington Stores maintained its momentum going into the fourth quarter, showing both net income and net sales growth in the third quarter.
Net income increased to $96 million, or $1.44 per share versus $1.12 per share last year. Adjusted net income increased 25% to $104 million, or $1.55 per share vs. $1.21 per share last year. Adjusted net income and EPS exclude the previously anticipated $0.02 charge per share for management transition costs. The increase in adjusted net income was driven primarily by higher sales growth, merchandise margin improvement, leverage on product sourcing costs and SG&A, and insurance gains.
Total sales in the third quarter ended November 2 increased 8.6% to $1.77 billion, while comparable store sales increased 2.7%. New and non-comparable stores contributed an incremental $116 million in sales during the quarter. New and non-comparable store sales were negatively impacted by $9 million in lost sales from seven stores temporarily closed during the third quarter of fiscal 2019.
Michael O’Sullivan, CEO, Burlington Stores, said, “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.”