Net sales for the fourth fiscal quarter ended January 31, 2015 at NYSE listed and off price apparel retailer, Burlington Stores lifted 11.3 per cent from a year earlier quarter.
Burlington said its net sales increased 11.3 per cent year over year or $151.1 million to $1,485.4 million in the fourth fiscal quarter.
“This growth includes a 6.7 per cent hike in comparable store sales, as well as a rise of $66.9 million from new and non-comparable stores,” the retailer said in a press release.
Gross margin expanded by 50 basis points to 42.2 per cent from 41.7 per cent in the fourth quarter of previous fiscal, partially offset by a 40 basis point increase in product sourcing costs.
SG&A, less product sourcing costs, the impact of a non-recurring legal charge and advisory fees, as a percentage of net sales was 24.3 per cent as against 24.6 per cent in the same quarter of last fiscal.
According to Burlington, the reduction was primarily driven by reductions in store payroll and advertising, partially offset by higher incentive compensation accruals.
Other revenue/income increased $3.3 million reflecting a $3.2 million settlement of a class action lawsuit relating to credit card interchange fees.
“This one time, nonrecurring settlement was anticipated when the Company issued its press release with updated guidance on January 9, 2015,” Burlington added.
Adjusted EBITDA grew 15.6 per cent or $30.3 million to $225.1 million with a 60 basis point expansion in adjusted EBITDA as a percentage of net sales.
Depreciation and amortisation expense, exclusive of net favourable lease amortisation ascended $1.8 million to $36.9 million.
Interest expense declined $12.4 million from last year to $15.0 million, driven by interest savings related to the debt refinancing in August 2014 and principal payments made during fiscal 2014.
Adjusted tax expense was $64.3 million compared with $51.3 million last year and the adjusted effective tax rate was 37.1 per cent compared to 38.8 per cent in corresponding quarter of last fiscal.
Adjusted net income in the reporting quarter totaled to $108.9 million or $1.43 per share as against $81.0 million or $1.07 per share.
Tom Kingsbury, chairman said, “The fourth quarter marked an outstanding finish to a strong year of growth for Burlington Stores.”
“Our consistent sales growth at increasing rates of profitability continues to demonstrate the power of our enhanced off price model and the strong execution of our strategies,” he added.
