Shares of Burlington Stores Inc. rose 7.8 percent in midday trading after the company posted first-quarter results that exceeded guidance.
For the three months ended April 30, net income rose 46 percent to $37.5 million from $25.7 million, while total revenues rose 8.2 percent to $1.29 billion from $1.19 billion. For the quarter, net sales rose 8.4 percent to $1.28 billion from $1.18 billion while comparable-store sales gained 4.3 percent.
The company said that on an adjusted basis, net income rose 32.5 percent to $41.6 million, or 57 a share, compared with 41 cents a year ago. Wall Street was expecting 48 cents on revenues of $1.27 billion.
Tom Kingsbury, chief executive officer, said, “Our performance was highlighted by an 8.4 percent increase in net sales, a 4.3 percent increase in comparable store sales and an 80 basis point expansion in adjusted earnings before interest, taxes, depreciation and amortization margin driven by the ongoing traction and successful execution of our off-price operating model.”
The company also said that gross margin improved by 35 basis points to 40.1 percent in the quarter, which offset a 20 basis point increase in product sourcing costs.
Burlington raised full year fiscal 2016 guidance, and now expects adjusted diluted earnings per share at between $2.68 to $2.78, from prior guidance of between $2.62 to $2.72, for the year ending Jan. 28, 2017. Diluted EPS for fiscal 2015 was $2.31.
The retailer also said it expects net sales to rise in the range of 7.1 percent to 7.6 percent, with comps to increase between 3 percent to 3.5 percent.
For the second quarter ending July 30, the company guided adjusted diluted EPS to between 20 cents to 23 cents. That’s compared with 19 cents a year ago. Net sales are expected to rise 6.3 percent to 7.3 percent, with a comps gain of between 2.5 percent to 3.5 percent.