Burlington Stores Reports 6% Revenue Growth and Increased Net Income in Q1 Fiscal 2025

Burlington Stores, Inc. reported a significant increase in financial performance for the first quarter of Fiscal 2025, ending May 3, 2025. The company achieved total revenues of $2.504 billion, a 6.0% increase from $2.362 billion in the same period last year. Net income rose to $100.8 million, or $1.60 per share, compared to $78.5 million, or $1.23 per share, in the prior year. This growth in profitability was attributed to higher sales and improved gross margin rates, which increased to 43.8% from 43.5% year-over-year.

In terms of operational changes, Burlington opened 14 new stores during the quarter, including four relocations, while closing three stores, bringing the total store count to 1,115 across 46 states, Washington D.C., and Puerto Rico. The company plans to continue its expansion strategy, targeting approximately 100 net new stores over the next five years. The increase in store count contributed to a 6.1% rise in net sales, primarily driven by the addition of 94 new stores since the end of the first quarter of Fiscal 2024, although comparable store sales remained flat.

Burlington's costs and expenses also saw notable changes. The cost of sales as a percentage of net sales decreased to 56.2%, down from 56.5% in the previous year, reflecting improved merchandise margins. Selling, general, and administrative expenses increased by 5.2% to $868.1 million, primarily due to the expansion of the store base. The company reported impairment charges on long-lived assets of $0.5 million, a decrease from $8.2 million in the prior year, indicating improved asset management.

The company’s liquidity position showed a decrease in cash and cash equivalents, which fell to $371.1 million from $742.3 million a year earlier. Burlington utilized $623.6 million in cash during the quarter, compared to $183.0 million in the same period last year, largely due to increased capital expenditures related to supply chain improvements and new store openings. The company has $748.2 million available under its ABL Line of Credit, with $100 million drawn as of the end of the quarter.

Looking ahead, Burlington Stores remains focused on enhancing its operational efficiency and profitability through various strategic initiatives, including optimizing inventory levels and improving supply chain efficiencies. The company acknowledges potential challenges from macroeconomic conditions, including inflation and consumer spending patterns, but remains optimistic about its growth trajectory and market opportunities.