Mon, Mar 17, 9:18 PM (34 days ago)
**Summary of Burlington Stores, Inc. (BURL) 10-K for the fiscal year ended February 1, 2025:** **Financial Performance:** - **Revenue:** $10.6 billion, up 9.3% year-over-year (YoY) driven by 101 net new stores and a 4% increase in comparable store sales. - **Net Income:** $503.6 million, up 48.9% YoY, primarily driven by higher sales and increased gross margin rate. - **Earnings per Share (EPS):** $7.91 basic and $7.80 diluted, up from $5.25 and $5.23, respectively, in the previous year. - **Gross Margin:** 43.2% of net sales, up from 42.5% in the previous year, driven by higher merchandise margins and improved freight costs. - **Operating Expenses:** $3.5 billion, up 7.9% YoY, primarily driven by 101 net new stores opened since the end of the previous fiscal year. - **Capital Expenditures:** $843.9 million, including $334.9 million for store expenditures and $384.8 million for supply chain initiatives. **Strategic Overview:** - **Store Expansion:** 1,108 stores in 46 states, Washington D.C., and Puerto Rico. Plans to open approximately 100 net new stores in the fiscal year ending January 31, 2026. - **Product Categories:** Diversified product categories including women's apparel, menswear, youth apparel, baby, beauty, footwear, accessories, home, toys, gifts, and coats. - **Supply Chain:** Six distribution centers and multiple warehousing facilities to support distribution centers. **Future Outlook:** - **Growth Plans:** Aiming to operate 2,000 stores over the long term, with an average of about 100 net new stores per year for a total of 500 net new stores over the five-year period from Fiscal 2024 through Fiscal 2028. - **Operational Flexibility:** Focus on improving operational flexibility, optimizing markdowns, and challenging expenses to drive operating leverage. - **Merchandising Capabilities:** Investment in training, coaching, improved tools, and reporting to strengthen vendor relationships and source great merchandise buys. **Risk Factors:** - **Economic Conditions:** Uncertainty in macroeconomic and geopolitical environments, inflationary pressures, and consumer spending habits. - **Competition:** Increased competition from other retailers, including off-price retailers and discount stores. - **Seasonality:** Higher sales and net income in the second half of the year, influenced by back-to-school and holiday seasons and weather conditions. - **Supply Chain:** Disruptions in the distribution network could cause delays in delivering inventory and significantly disrupt business. - **Cybersecurity:** Potential disruptions in operations and financial losses due to cyber-related attacks. **Financial Condition:** - **Debt Obligations:** $1.7 billion in debt, including $1.2 billion under the Term Loan Facility and $453.2 million of Convertible Notes. - **Cash Flow:** Generated $69.3 million in cash flows during Fiscal 2024, with $863.4 million in net cash provided by operating activities. - **Liquidity:** $827.0 million available under the ABL Line of Credit as of February 1, 2025. **Market Position Changes:** - **Stock Performance:** Fluctuated from a high of $298.89 to a low of $174.64 in Fiscal 2024. - **Dividends:** No dividends declared or anticipated in the near term. The company retains all available funds and future earnings to fund capital expenditures and business initiatives. **Note:** This summary provides a concise overview of the key points from the 10-K filing. For a detailed analysis, please refer to the full 10-K document.