Burlington Coat Factory Investments Holdings, Inc. and its operating subsidiaries, a nationwide retailer based in Burlington, New Jersey, announced its results for the third quarter and year to date periods ended October 27, 2012.
Third Quarter Fiscal 2012 Operating Results
Comparative store sales increased 2.1% and total net sales increased 7.7% to $967.9 million for the three months ended October 27, 2012 compared with last year.
Adjusted EBITDA for the quarter was $54.5 million and, as a percentage of net sales, decreased 90 basis points to last year. The decrease was primarily the result of a planned decrease in gross margin rate, partially offset by a reduction of selling and administrative expenses as a percentage of net sales. We expect to deliver our full year gross margin rate in line with our historical results.
Year to Date Fiscal 2012 Operating Results
Comparative store sales increased 1.8% and total net sales increased 7.4% to $2,814.5 million for the nine months ended October 27, 2012 compared with last year.
Year to date Adjusted EBITDA was $155.1 million and, as a percentage of net sales, decreased 70 basis points to last year. The decrease was primarily the result of a decrease in gross margin rate and the impact of certain investments aimed at improving the execution of our buying model and our customers’ shopping experience, which began in the third and fourth quarters of Fiscal 2011. Selling and administrative expenses as a percentage of net sales was 33.7% for the nine month periods in both years.
Tom Kingsbury, President and Chief Executive Officer stated, “We continue to be pleased with our sales and inventory management performance. While our year to date Adjusted EBITDA result is slightly below last year, we believe the investments we are making are in the best long term interests for our company. I would like to thank our store and corporate team, as well as the vendor community, for our year to date results.”
Burlington Coat Factory is a nationally recognized retailer of high-quality, branded apparel at everyday low prices. The Company currently serves its customers through its 500 stores, inclusive of its online store, in 44 states and Puerto Rico.
