Burlington hangs tough in Q1
June 10, 2014-- Home Textiles Today,
Burlington, N.J. – Burlington Stores pushed back against the stormy winter head winds that hobbled so many other retailers during the first quarter to turn out solid sales and margin increases. Performance in home was spotty, but execs believe better days are soon coming for the department.
Housewares and luggage were the top sellers in home, with weakness in décor and home textiles. However, the 523-unit off-pricer has recently beefed up the buying team. “We feel confident we’re going to be able to capitalize on the opportunities there,” president and ceo Tom Kingsbury told analysts during this morning’s quarterly conference call. The impact should start gaining traction in the second half of the year, he added.
For the quarter ended May 3, Burlington generated net income of $11.8 million compared to a net loss in the year-ago quarter of $5.6 million. Gross margin climbed 80 basis points to 38.1% from 37.3% last year, which the company said helped offset higher product sourcing costs.
Sales grew 5.9 to $1.13 billion, with comps up 2.7% . Some $40.3 million of the sales total came from new and non-comparable stores.
Burlington plans to open 25 net new stores during the current fiscal year.
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