Total sales increased 11% in the third quarter, on top of 12% sales growth last year. The major driver of this growth is our new store opening program.
— Michael O’Sullivan
03Detailed Report
BURL
Company BURL
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 21, 2026
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Executive Summary
Burlington Stores delivered a solid Q3 2024 with top-line momentum and a disciplined inventory stance that supported margin expansion despite a weather-driven comp dynamic. Total sales were $2.53 billion, up 11% year over year, driven primarily by the company’s aggressive new-store program. Comp store sales rose 1% in the quarter, but management emphasized a healthier underlying trend—stripping out the impact of unusually warm weather—the underlying comp trend was around 4% since March 2024. The company also highlighted strong margin discipline, with gross margin expansion of 70 basis points to 43.9% and an 80-basis-point uplift in adjusted EBIT margin to 5.6%, driven by higher merchant margins and supply-chain savings. Adjusted EPS reached $1.55 for Q3 (GAAP $1.43), at the high end of guidance, underscoring a high-quality margin improvement even as comps were modest. Cash generation remained robust on an operating basis (adjusted OCF of $110.4 million in the quarter), though the reported free cash flow figure in the data set appears inconsistent with capital expenditures and operating cash flow (CapEx ≈ $454.9 million; OCF ≈ $110.4 million; FCF data discrepancy noted). Burlington maintained Q4 guidance of flat to 2% comps and 5% to 7% revenue growth, while acknowledging the 53rd-week calendar could exert pressure on margin and earnings. Looking forward, Burlington reiterated a long-range plan toward $16 billion in annual sales and $1.6 billion of operating income by 2028, with net new stores target of 500 across 2024–2028 and ~100 new stores in 2025. Management also signaled ongoing investment in supply chain modernization, including a Savannah, GA distribution center (2 million square feet) planned to open in 2026, with a stated preference to own DCs where feasible. Given the external uncertainty—tariffs, tax policy, and macro conditions—the company continues to stress conservatism and the ability to chase upside. This note integrates the quarter’s financials with management commentary to provide a holistic view for investors.
Key Performance Indicators
Revenue
Decreasing
2.53B
QoQ: 2.64% | YoY: -19.05%
Gross Profit
Decreasing
1.11B
43.96% margin
QoQ: 5.22% | YoY: -11.04%
Operating Income
Decreasing
131.99M
QoQ: 23.64% | YoY: -58.76%
Net Income
Decreasing
90.60M
QoQ: 22.83% | YoY: -60.17%
EPS
Decreasing
1.43
QoQ: 23.28% | YoY: -59.49%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability:
- Q3 2024 total revenue: $2.5307B, up 11% YoY; comp storeSales: +1% (Q3); underlying comp trend ex cold-weather impact around +4% (Q3/YTD). Management attributes much of the top-line growth to new-store openings and strong back-to-school performance in the first part of the quarter.
- Gross margin: 43.9% in Q3, up 70 bps YoY, driven by 50 bps higher merchandise margin (better buying and fewer markdowns) and 20 bps freight efficiency.
- Operating margin: Adjusted EBIT margin 5.6% in Q3, up 80 bps YoY, supported by gross-margin expansion and supply-chain leverage; net leverage on SG&A declined before one-time Bed Bath & Beyond lease-related effects.
- Net income and earnings: GAAP net income of $90.6M; net income margin ~3.58%; adjusted EPS $1.55, at the high end of guidance; GAAP EPS $1.43; diluted $1.40.
- Cash flow and liquidity: Net cash provided by operating activities of $110.4M; capex of $454.9M; free cash flow data appears inconsistent with OCF and capex in the dataset (reported free cash flow of $565.4M; implied FCF = OCF - Capex ≈ -$344.6M). Management highlighted a healthy inventory position (comp-store inventories down 2% YoY) and reserve inventory up to 32% of total inventory, reflecting strong buying opportunities and value proposition.
- Balance sheet and leverage: Cash and cash equivalents of $857.8M; total debt of $5.239B; net debt of $4.381B; cash and equivalents run-rate liquidity remains solid, with total debt-to-capitalization around ~65.5% and debt-to-equity ~1.90.
- Channel and store strategy: The firm reiterated a long-range plan to end 2024 with ~101 net new stores, with ~147 gross adds including relocations; 25,000 sq ft prototype stores comprise the bulk of the pipeline. Management signaled confidence in opening 100 net new stores in 2025 and pursuing a 500 net new-store target from 2024–2028.
- Guidance and outlook: Q4 guidance remains 0% to 2% comp growth and 5%–7% revenue growth; Q4 adjusted EBIT margin expected to down 50–80 bps, with a 53rd-week calendar shift contributing to near-term pressure. For 2025, Burlington guides to high-single-digit revenue growth with flat-to-2% comps and modest EBIT margin expansion (20–30 bps at the 2% comp level; with 100 bps of comp above 2% potentially delivering 10–15 bps incremental EBIT).
- Management tone: The leadership emphasized resilience through weather volatility, strong new-store execution, and continued supply-chain productivity, while maintaining prudence in planning to “chase” upside opportunities.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.53B
-19.05%
2.64%
Gross Profit
1.11B
-11.04%
5.22%
Operating Income
131.99M
-58.76%
23.64%
Net Income
90.60M
-60.17%
22.83%
EPS
1.43
-59.49%
23.28%
Key Financial Ratios
Gross Profit Margin
Good
44.00%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Fair
5.22%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
3.58%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.07%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.28%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.17
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
1.90
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
High Growth
42.57x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
Premium
5.58x
Trading at premium to book value, reflects strong intangibles or growth
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