Home / Knowledge / News / Apparel/Garments / Q2FY15 EBITDA zooms 23.8% at apparel retailer Burlington
Q2FY15 EBITDA zooms 23.8% at apparel retailer Burlington
11
Sep '14
Adjusted EBITDA zoomed 23.8% year-on-year at off-price retailer of high-quality branded apparel and NYSE-listed Burlington Stores, Inc. in the second quarter ended August 2, 2014.

Burlington Stores said its adjusted EBITDA increased 23.8% or $11.2 million in second quarter of 2014 from $58.1 million in second quarter of 2013.

Sales growth, SG&A leverage and gross margin expansion led to a 70 basis point expansion in adjusted EBITDA as a percentage of net sales in second quarter of 2014, as compared to the second quarter of 2013.

Burlington was also able to reduce steeply its adjusted net loss to $0.9 million or a negative $0.01 per share in the period under review against net loss of $13.6 million last year or negative $0.19 in the same quarter last year.

Net sales increased 8.3% year-on-year to $1,043.6 million, which includes a 4.7% hike in comparable store sales which follows a comparable store sales increase of 7.8% in the 2013 second quarter driven by improved execution of the retailer’s off-price business model.

Gross margin expanded by 50 basis points to 38.2% in the second quarter of 2014 from 37.7% in the second quarter of 2013, which Burlington noted, more than offset 40 basis point rise in product sourcing costs included in SG&A expenses.

SG&A expenses without considering product sourcing costs and advisory fees, as a percentage of net sales was 29.0% against 29.7% in the second quarter of 2013 driven by improved leverage in store payroll, store expenses and other SG&A expenses.

Depreciation and amortization expense, exclusive of net favourable lease amortization too decreased $0.4 million to $34.0 million in the thirteen weeks to August 2, 2014.

Interest expense decreased $7.8 million to $25.5 million from last year from interest savings related to principal payments made over the last twelve months on its Holdco Notes and term loan.

Burlington was also able to reduce merchandise inventories at the end of second quarter of 2014 to $711.5 million versus $748.3 million at end of second quarter of last year.

According to Burlington, the decrease was primarily driven by a comparable store inventory decrease of 18% as a part of the ongoing initiative to reduce inventory levels, increase inventory turnover and ultimately drive incremental sales through continually improved product offerings.

This decrease, the retailer added, was partially offset by a $41 million increase in pack and hold purchases and inventory related to the opening of 20 net new stores since August 3, 2012.

For the third quarter of 2014, Burlington expects net sales to increase in the range of 6.4% to 7.4% and adjusted net income per diluted share in the range of $0.09 to $0.12 compared to an adjusted loss per pro forma share of $0.05 in the third quarter of 2013.

The apparel retailer also announced that it will open 17 new stores and close one existing store resulting in a total store count of 539 at the end of the third quarter. (AR)

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Ikea

Textiles | On 26th Apr 2017

Ikea’s product sourcing from India to double by 2020

Ikea, the global home furnishing giant from Sweden, plans to double...

Textiles | On 26th Apr 2017

CITA to add insufficiently available fabric in CAFTA-DR

The Committee for the Implementation of Textile Agreements (CITA) has ...

Courtesy: SKF

Textiles | On 26th Apr 2017

SKF brings predictive maintenance for machinery to India

SKF India, a global supplier of bearings, seals, mechatronics,...

Interviews View All

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search