Sales, costs hurt Burlington Coat
August 25, 2003,
Hurt by a losing trifecta of falling same-store sales, eroding margins and higher costs, second-quarter profits at Burlington Coat Factory Warehouse Inc. were slashed by more than two-thirds, falling by 69.4 percent, to $2.7 million from $8.9 million last year.
Through its Luxury Linens unit, Burlington is the nation's 13th largest home textiles retailer, slightly ahead of Macy's East, with $273 million in home fashions sales last year.
Average gross margin contracted by 20 basis points, or two-tenths of a percentage point, to 39.3 percent from 39.4 percent a year ago. Doing even more damage, costs climbed higher by 60 basis points, or six tenths of a percentage point, to 35.8 percent of sales from 35.2 percent a year ago. Measured in absolute dollars, costs increased by 2.8 percent, to $217.8 million from $211.8 million the preceding year, pulling about $6.0 million away from the bottom line.
Interest expense more than doubled in the period, climbing by 116.9 percent, to $681,000 from $314,000.
Burlington Coat Factory Warehouse Inc.
|Qtr. 5/31 (x000)||2003||2002||% chg|
|Oper. income (EBIT)||20,640||25,233||-18.2|
|Per share (diluted)||0.06||0.19||-68.4|
|Average gross margin||39.2%||39.4%||—|
|Oper. income (EBIT)||156,212||146,216||6.8|
|Per share (diluted)||1.46||1.50||-2.7|
|Average gross margin||37.5%||37.4%||—|
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