Burlington’s tough 12 months began out being tougher than anticipated

Burlington’s tough 12 months began out being tougher than anticipated

Burlington, N.J. – Burlington Shops was anticipating a troublesome first quarter, and it obtained one.

Up in opposition to 20% comp progress from 2021, the off-pricer had deliberate for a mid-teens comp decline. Precise outcomes fell in need of that, with comp down 18%.

“The most important driver of this gross sales miss was that inventories have been too low and unbalanced in February and March,” mentioned CEO Michael O’Sullivan. “We raised stock ranges in the course of the quarter, in-line with final 12 months, and this drove an enchancment in our comp development.”

The corporate’s three-year geometric comp stack was -6% in February, -2% in March, and +5% in April.

Regardless of sequential enchancment over the course of the quarter, Burlington’s gross sales development stays weak. Comps in Might have been much like these April.

“We had anticipated that 2022 could be a tough 12 months in retail, however the financial setting, particularly the influence of inflation on decrease revenue consumers, is having a larger influence than we had anticipated,” he mentioned. “We now have lowered our outlook for gross sales.”

O’Sullivan famous that financial slowdowns traditionally have benefitted off-price retailers as customers commerce down searching for worth.  Burlington is already seeing a considerably elevated provide of off-price merchandise availability, “and we really feel that our conservative gross sales plan and powerful liquidity place us nicely to make the most of this chance.”

Merchandise inventories have been $1,257 billion vs. $768 million on the finish of final 12 months’s first quarter, up 64%. Comparable retailer inventories elevated 2%. Reserve stock was 50% of whole stock on the finish of the primary quarter in comparison with 35% on the finish final 12 months’s Q1.

Burlington Stores Inc. Q1 results

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