BURL - Earnings call transcript Q1 2025

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Operator

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to Burlington Stores, Inc.

First Quarter 2024 Earnings and Webcast. [Operator Instructions]

I would now like to turn the conference over to David Glick, Senior Vice President. ahead. go Please

David Glick

of and with in operator, XXXX everyone. appreciate & of our We quarter quarter leases. XXXX Thank the Beyond acquisition exclude conference good of call participation impact discussion indicated, otherwise today's results. expenses fiscal for to everyone's the operating first associated you, certain Unless morning, results the discuss first Bath Burlington's Bed

and Executive today Officer; our and Chief are Financial our Wolfe, presenters Officer. Our Chief EVP Michael Kristin O'Sullivan,

I Michael, transcribed, to like over this of without may call available the turn X, We call third of be by I listeners call until inform not our replay XXXX. that this appear be take recorded would in that call A Before parties. to broadcast will no transcripts the June inaccuracies expressed responsibility may permission. or for

the the discuss Burlington are by measures release. Please materially and expectations, projected and for that a non-GAAP included in operations and all Such XX-K projected GAAP the discuss certain subject copyrighted remarks are concerning press financial we Stores. Remarks that filings today the that in expressly today's basis. to are from strategies, to of made we Q&A which on results continuing risks financial company's in the measures other of incorporated objectives, with statements. that note such are future herein may are this fiscal in Reconciliations reference. XXXX, SEC, today by including differ are trends Actual and or those results expectations uncertainties call are described events, follows today and forward-looking those Our results uncertainties. on risks

Michael. here's Now

Michael O'Sullivan

QX to I topics will I your results talk year Good you we and thank will finally, happy to through cover I guidance. XXXX our financial and morning: about QX over our Then for full respond Kristin David. that, our I will firstly, I joining on would us. the you, QX our questions. comment to details outlook. walk and secondly, discuss to will of everyone, updated guidance; our After X results; be will morning, hand to this Thank like

Okay.

Let's sales believe to results. is indicator quarter compared to other sales. total the first happening that about I'm for start with growth We best with retailers total is talk our market share. what proxy going

quarter total Our that first was grew QX total compared top growth the of XXXX. of on sales XX% versus QX to in by sales of XX% XXXX,

stores. ended this XX line stores with quarter are we X,XXX driver of the QX, In New a growth. stores new top key and added net

year. net track We open XXX are on stores new to this

other X% This Comp is QX year's The for driver sales X%. sales store growth. comp growth of plus comp last flat sales store to increased of the versus was of top on sales first store increase X% top line quarter sales of guidance comp our store X%.

XXXX. as we was As tax had sales our winter February slower disruptive trend versus March weather was to this in that attributable of the we our described last refunds than We X, believe earnings anticipated. well of on February pace softer as call

timing As in refunds, discussed to we sensitive is refunds specifically our shopper past, to credit. income the of have the tax earned lower-income core related tax

In the Easter X-months regular particularly to price these refunds trend look improved to it at sales combined. Similar Sunday, quarter, a sales very quarter combined, normalize, of comp of expect, is the solid comp strong. selling to as April our began fourth increased tax the might you for X%. our the sales unfolded. period was As our trends March, our the timing important Because

for are selling it the responding than was is the sales. rates they X%. decrease as double-digit level assortments clearance offset great are positive that finding March, and April regular price our X% shoppers well in This the our period, healthy. stores. to shows of a more in priced a These very values regular It growth For whole, positive quarter was and comp growth

comment turn in I for strong I to year, to profit our Before our outlook on QX. the the and quarter growth like would second full

basis increased margin over up and our EBIT XX% a points, Our robust adjusted was XXX year. EPS last

will Kristin a well guidance. performance partially this margin moment, favorability timing. this margin expense drivers As was There in strong of But of our and major adjusting for earnings our X driven even after expansion. were explain was by this, ahead

very our ago, regular This lower Firstly, mentioned turns as I was faster drove strong. price a markdowns. moment selling and

was major on driver second efficiency initiatives. The faster-than-expected progress chain our supply

from strong by this seeing results program. early we are are We the that encouraged

Okay.

outlook Let on second for quarter. the the to me move

X%. guidance for they our comp this most a are remain could Our be reasons cautious. on there But based to We QX upside trends, of to that is forecast. recognize couple to flat recent

Firstly, expect that we and at trend our and April we catch-up March in that, driven by point, believe the strong tax refunds, this tailwind abate. was could some

past X%. the been quarters growth plus X comp our Secondly, has each of for

we guidance able a that calling quarter, receipt picked keep flow reasonable comp nice X%. chase be our it. QX as job stronger So up to out these the chase the trends turned our and and chain March rapidly first I sales. guidance, it our supply worth confident teams is to to to ramping merchandising to April, in am EBIT in did feels that will trend this plus be out If than It up

our hope comp reiterate, we do guidance So to is X% to to but better. QX X%,

will At of point, for outlook now raising further I sales are of the this in the XXXX, based the me start our full few provide X%. and full on pleased our Let guidance this comp That very on first our a the year margin to trends Kristin our strength and to performance. year at our with margin on flat moments. Reflecting to our margin our are remainder for quarter EPS. maintaining we adjusted details am and said, segue we year. performance, underlying earnings

I'm the even rest more of in excited are the QX of us. positioned year. and for about opportunity longer-term We well the front

our believe over sales we our profit. X-years, almost That XXXX operating before, operating As that next income we billion. grow can $X.X $XX we have Xx to to and our billion is discussed the

to Now will who for our turn guidance. details the outlook first and year our I like over quarter Kristin? to on our call XXXX Kristin, share QX updated financial more results, would full

Kristin Wolfe

everyone. Michael, and good you, Thank morning,

Okay.

now high move of the details guidance. to Let's grew on XX% results. our of quarter both grew sales the first our comp and sales at Total X%, end

points in expense chain of increased supply significantly last timing of gross $X higher guidance. The were Our expanded in compared drivers expansion share and adjusted adjusted a per approximately of both margin a much earnings basis ahead EBIT QX shift versus better-than-expected last and XX% to year, margin the XXX year leverage million margin, improved of expenses.

chain a were basis favorability to rates were million, Product came as sales, XXXX, increase selling, XX walk rate margin gross savings from last chain. of was the price Let details. due through in sourcing There X strong points was versus faster the expenses of driven points to and XXX XXX basis a XX lower by margin initiatives. quarter freight basis merchandise due year. primarily $XXX cost $XXX costs and supply regular decreasing of leverage. the first basis basis of versus points lower turns this in of increase points inventory me XX percentage which this This first XX.X%, The drivers supply point an leveraged generated for million quarter markdowns. Freight

partly to distribution productivity the than by most And and benefited we $X on driven First timing made between progress significantly, costs and was QX & Beyond QX. Adjusted of we center initiatives. the basis year. secondly, This SG&A related rent our were and last higher expenses leases. QX Bath faster-than-expected of dark XX receipts from other million Bed in points

these X.X%, store XXX last QX points, primarily by year basis expenses, margin with for to basis was XX increase deleverage XX was Excluding driven of points SG&A higher adjusted investments EBIT compared guidance increased in XX an payroll. basis than points.

well quarter, first the end of in Beyond the million store expenses approximately Bath pretax $X.XX. was high below share of quarter comparable guidance range were leases. associated X% above Bed the was At with the per $X and earnings of exclude & adjusted XXXX. This end our to the $X.XX, our $X.XX result inventories the of range which Our

our year. our total inventory inventory XX% versus was While of reserve XX% last

the happy reserve. of and with we are that have the quality in We the merchandise very values

quarter, stock. $XX repurchased we common the million in During

million In the XXXX. XX end store first net the we the closing. of share openings, of count of quarter, store and X,XXX new XX XX This quarter, our new opened of included our on stores. repurchase August $XXX we remaining end XX at had the As first to expires in that bringing quarter relocations the stores, authorization

open in We new net continue to XXX fiscal XXXX. to expect stores

year. Now turn back the year, the half for will to fiscal our second the and quarter the outlook full of I

flat of earnings We guidance are our maintaining to X%. comp outlook increasing full and up year sales our

making guidance fiscal addition, full openings, to of a now increase of timing outlook due to of [ our up to We of slightly our now an original XX% expect to from new are $X.XX, to modest up to ] adjustment total expected of store full adjusted In XX basis X% later sales translates to growth the strong by increase for $X.XX year, range adjusted and per the earnings fiscal margin XX%. full EBIT adjusted $X per of for performance, points, on original to year XX share quarter original margin just below guidance our X% our updated This XX our first margin basis our points. Based are an to we guidance $X.XX. earnings increase year. guidance increasing share for financial from to XX our to we an

to earnings a QX the in approximately points This XX QX. Consistent increase sales per prior and total to from quarters, from expenses to expansion For $X.XX we up associated from leases negative acquired X% which the would Beyond of increase share Bed $X.XX. a an versus of to approximately impact & $X.XX This of excludes are expenses margin the second quarter, basis recently of $X.XX, the includes of XX operating this timing quarter XXXX. plus flat to up Bath translates second to with of with guidance guiding of X% comp result guidance for XX%.

turn compared the comp half and this plus now assumes an $X.XX outlook back increase and X%, and X% of total in to $X.XX, increase earnings X% be of last of For the basis year. I XXXX, to the to of range sales to per EBIT share of points, to XX% sales X% store flat to call XX Michael. increase fiscal to X% back will to to an margins

Michael O'Sullivan

Kristin. Thank you,

X points discussed me that this key morning. we've recap Let

sales growth growth Firstly, our X% April combined. are X% for and quarter quarter, comp March, comp growth XX% the with for total sales sales we growth in pleased QX. the sales for

faster-than-expected by and our and supply we These earnings price from also strong margins merchandise Secondly, progress higher selling, initiatives. lower our results. pleased by faster on with very markdowns QX and driven are driven terms regular to margin were leading chain

Thirdly, positioned our are that this chase. updating comp QX and over maintaining guidance call our but raising X% flat like strong we full We very year for for to are are may results. to would questions. recent And be well finally, to QX. earnings trends, to our plan we recognize the we given I With that, your of reflect guidance turn now ahead conservative our

Operator

from first Instructions] comes line Matthew JPMorgan. question [Operator of the Your Boss with

Matthew Boss

quarter. nice a on Congrats

elaborate impacted you far could So may then May? the of refunds you your factors seeing could you're such have some the of through Michael, walk in through sales first on comp And as on so the trend tax what the trend? quarter, comment progression that

Michael O'Sullivan

thank you the Well, for Matt, question.

was clear I February the think X% was minus I and X%. month-by-month X a was comp comp. up be may just April numbers. it plus March if a easier

make Now the adjust to important March for April Easter. of it's sense those timing of numbers, to and

year, many day less Easter year are April our in of this points are stores year. that XXXX. year more worth within like Sunday. X March to that last this Sunday retailers, And This closed had on X month. stores with selling means shift versus selling Our fell X March April X selling That is had of day comp day compared and a each Easter

and what adjust then in that a you timing through pickup then momentum Easter trend see continued versus in you of the February, April. is March So strong the Sunday, for if

the So the refunds. major believe driver this of major with we -- timing of trajectory the that tax month-by-month

long that fell our the made seasonal in last that of of early eventually timing and at But trend. markdowns we've with adjust slowing store this a we there's last By react to past, that we the our able to sales benefit was of level. date. a catch February, selling with those decision quarter. store refunds, faster those slow are sensitive a refunds said, our happy tax QX may And core those read up, deliberate of month. that of trends contributed to other levels. about receipts way timing that quarter As is to say the say explained lower part -- gave would but been it to lower mix we last sales we credit. did especially we not sales. the In until more customer There than the there I'd is to merchandise I I effectively They a correlates business the income question real turns, The and were in a May a by income the trend. to chance the to of And tax off adjust is earned And say behind one is good for season to momentum data. we in allocation your us still the year's based able March. end guess start. factor that stronger I year, think inventory receipts at have to and is that trending the This of very the were go how later have upon monthly in later, would contributed year. did month timing receipts.

Matthew Boss

then Kristin. follow-up for Great. And maybe a

upside you walk of out first excluding you on saw your of shift. that you just then margin why? drivers and first expense operating shift, Could and And first shifted quarter quarter any color in quarter? the that on the additional Just the the just the the could through margin provide expenses

Kristin Wolfe

primarily does have thanks for around QX was we expansion, did XXX accounting a margin from into benefit yes, XX first to and our of about the expansion Overall, And or expense include year, which points terms points Matt, adjusted of after basis points. for quarter timing margin our last above of XX XXX EBIT strong question. versus QX of guidance basis last versus quarter a the first And $X expenses. million in points the That's out about timing, year. increased basis QX. the basis XX of worth this well

give let drivers. the were really little shift. X a more on There expense So me detail

was chain, which driven factors. supply X receipts. approximately was piece in was first The timing This by the The represented of $X million. biggest

then center, of in associated with which there the QX So be shifted were some receipts -- distribution start-up expected Jersey that to QX. to And opens New some we expected new expenses as second processed in opening we our secondly, the quarter planned.

freight. The to QX SG&A and into marketing timing $X They quarter, the expenses. of benefit shifted of out of that about second in the second includes This first of items. expenses and factor in the out expense the timing finally, was approximately was was There spend from QX $X quarter then of timing. And was QX, and that the there that then shifted on $X with million fall. SG&A receipt select another shifted and freight and miscellaneous million associated million into items

QX out fall. total, into $X timing $X million and into shift of and QX expense of QX, So million included out shifting and in the

a those of points XX So higher and as of leverage points of SG&A, spend. excluding and in margin of deleverage mentioned, freight, payroll XX the given part increase then XX looking namely of at to the partly by XX these turns and points expenses the depreciation quarter, leverage expenses, was of and really lower chain the offsetting secondly, basis margin, this basis in timing then faster I your there, basis driven in items leverage and by primary XXX also on was markdowns; CapEx supply expanded net basis merchandise points in inventory in leverage store of question, X And due factors: points. first, basis a as EBIT

Operator

Next Fargo. question comes Ike from Wells the line of with Boruchow

Irwin Boruchow

trend. questions. Great Two

you that unpack Michael, little the just -- consumer And And bit know of if guys there. for First spoke bit. we lot have Michael, you I of about kind could little a ties low-end a more. a

lot pretty quarter. consumer. in guys the like we've booked volatility that nicely trend and So It you looks heard a in noise that of

that with are guys [indiscernible] to of what you seeing So is, the there? And I then exactly with do that you my base consumer did today? exactly question what guess cohort outperform

Michael O'Sullivan

the for you question. Thank

a saying Let sophisticated But is we framework, and slightly very all deal have And feeling to that income a all this tend read hard by of I deal who is X but groups, main a our the size, incomes right tend larger environment into higher the off lower want who me start and and those segments not shop income are consumers, choices. be think just need we more very not to segments: external -- that groups assessment now. economic divide shoppers income world have both shoppers pressure. price. lower family is to income know financial the

and deal we've as the needs us. to very is especially shopper at Now need important a points And that on value, brands. opening said price shopper before, moderate

of So those about X XXXX, other is appears referenced of say, were view in those stabilized. actually But -- for over noise that last of rearview may mirror. noise, quarters, rear cost phenomenon the be we pandemic concerns the income and, a those discretionary consumers. in they living crushed those We [ in that this, kind to have and point, sort can higher felt In and think are investor since at those our certainly demographic benefits. in words, the lower-income really that's of that era shoppers end combination the then, by the that you ] point, concerns a set lower-income this would concerns this I overblown. your question, of We mostly -- that think at

and in is of February, bouncing not with yet. the seem way But assessment at they lower any situation not XXXX. our were inflation is and this Now refunds that saw doesn't but down, be incomes delayed are -- the better looks that the for not back. tax customer We're that getting shrinking like end consumer to the in evidence in has worse. the real come situation saying fragile, it still They're is we that consumer the that getting

to So that the are some of find tax meant that period shopper to that come had March a the Number coming in last in great and really X to shoppers think back in that to factors as that pockets. April, your there strong our lower-income one, place refunds money their trend. explain catch-up explain years, has question, how value. I that in In extra appreciate Burlington couple trend

that natural have they it's to spend. extra So to would some when they come us money

somewhat second at The from they trade brands helping those of for shopping think to were look as XXXX, more we're feeling that that factor seeing to impact believe especially the that our in is off-price pinch. in stores, customers selling, income comp down the that's now felt But unrelated are higher perhaps shoppers. we that's It insulated and our demographic could us. tap We moderate support high to at we're that lower we they price benefiting also points, is shoppers traffic better on income had from good means When savings into. excess of if it that believe value. -- trend. In inflation, we search

Irwin Boruchow

can helpful. And Very more Kristin, if one it. Got sneak then in. I

a just the quarter? to efficiencies I upside exactly Is that a Just come Can there guess drivers unpack is, this that what chain little Just in -- you more? possible the come? first that quarter? And more there more to efficiencies quarter is some to Is onetime referenced are you of to thing first those that the just the led follow-up benefiting in in supply bit a then you. there?

Kristin Wolfe

we're We costs of Great. supply sales. were driving terms that's a chain Ike, down question. good by progress in as of the encouraged percentage making a

labor we expense which we're of points, QX, savings. talked Excluding streamline in shift dollars merchandise number before, cost ultimately that engineering-oriented place I than had our reduce leveraged is to that a talked save shared in more meaningful improvements. supply supply reduce process about improvements chain, have and we time where And about targeting productivity chain I've just XX basis initiatives touches, in These DCs. planned. in operations, Industrial are we've process,

we that originally the We the have are margin we've of come? we to this, believe -- as leverage of Yes, faster were kind these from expected. higher basis a XXXX of this basis and around opportunity of margin your XXX the there more in balance using is from will sales That's we'd supply on, we independent of coming points XXX found about said continued basis a to we meaningful And EBIT X% points EBIT about bit you part quarter, as we freight expect with to the X baseline. lower know, follow-up first next points opportunity merchandise chain And question -- half margin. XXX and years. over of come the is of we than come harvesting from savings believe

feel we chain. we've items, first like those line So supply all of demonstrated in particularly X good quarter the progress on

Operator

Next America. question with comes Bank line Hutchinson from the Lorraine of of

Lorraine Maikis

increasing their see peers way a this have drive strategy? March, I'm this to on if as an as you your about you also comps. said risks be talked might opportunity any Do Michael, update curious this? well. you to for any have mix And of you In off-price brand

Michael O'Sullivan

we do increase generally, mix opportunity Yes, our of we you. to from elevate hear our to to assortment. see more see opportunity an And Good Lorraine. an actually, brands.

say, your we're that fact, the role of play me the of strategy. just addressing sort part risks last with brands limits the about year. And would some like spend or the But in already a let also, business. more, of the our lean the that question sportswear. minute that back talking about plan half In we in opportunity seeing in I that businesses approach of into success But to

component perception and brands value. drive Now by most far just customers' of quality critical of is price Fashion, But one Brands course, are thing are important. the the off-price, value. in of value. also

going it. the quality in clearance to the going You wrong, can have run. or fashion, the a buy isn't the It's end are if great to the but customer brand, up price

styling depends that price a the point second time that and brand And defining sensitivity. to on spent customer merchants also of depends of out the retailers on they're may calculus important, that. is I value are but one make then in better, And whole their different rack executing our and why be the upon good, best lot should planning plays other depending their the just category own and that for strategy. Again, customer and the our role brands The piece add profile. that's

Okay.

of all where context, with So as talk opportunity. that we see me about let

on we I value. said need that do emphasize, an continue I job to income we to store, this more to earlier, we trade know think very better As to do job customers. brands. walk with deals think drawn We those it shoppers. in those believe me When be they're economy, to all low-income in do drive shoppers the we that deal excellent an are intend great we to shoppers on or -- likely down sales can But when continue we important now focused more let higher excellent slightly do -- shopper. comes a with And we also our

more as So year, get of our see those runs. the in further we brands you'll into

maybe as selectively where up let works and reinforcing matter. Now brands we'll you'd that finish expect, the But businesses in point. really it by where do me

continue and trade-down going shoppers this deal we're We'll an So for go to end as a we this deliver opportunity, need our core see as after well. to strategy.

Lorraine Maikis

including first what enabled and XQ? for increase outlook strong is the much expected. of than quarter through? calling balance expect the about seeing for we why in was better And we the then, 'XX, And unique kind should we XQ that the such was flow of not same the the EBIT year? that first balance Obviously, fiscal Also, in aren't margin Kristin, margins. the XQ in What quarter of performance

Kristin Wolfe

call-outs Lorraine, and to about in supply thanks I clearance merchandise couple had levels second a months for turns leverage drive was make. we just strong are a and few turning strong really better want had chain margin our helped to I performance and question. the question, margins faster Certainly, QX, of we than quarter, ago. But expected as your to spoke there the lower

out in expenses shifted of have we First, $X million about into which of $X shifted million QX. that QX,

negative the chain around costs. quarter. quarter, coming So add some online in our in in New modest center basis quarter, training given the in EBIT point second on And XX a be Jersey the addition, this impact deleverage that's start-up second having newest in margin which supply will and will distribution

Now that offset supply about this QX. the initiatives the we chain be just by supply likely productivity chain, will leverage in that I in than more expect and but will talked temper

standpoint. last X% week X%, a half to QX The a a the then sales year And most your trading XX%. is total has growth to growth November the Fall XXrd we there to impact. year, essentially where on impact on growth of is question, week for are QX total in in acute week lower planned sales XXrd a week the from January as guidance sales compared last our back year X% of for to slightly than full

and due share total think detail we'll for on on more margin you QX now, about our as Now QX But the mind guidance the QX, will QX to -- impact improvement margin XXrd in which will thereby than call that QX QX. in keep August. and will QX modeling for sales be versus which impact, week impact calendar growth for relative higher QX the

Operator

John Next Cowen. TD question comes line from the Kernan of with

John Kernan

that. chance the David you And into a become after the there tailwind keep top through. margin year? just here. any nice in the Michael, QX, David, on as Kristin, freight driver job just Is rest margin line a headwind to continue follow-up looks a year? for margin was of let's further get like the flow for Kristin, It it freight and the will margin it be a on theme the quick

Kristin Wolfe

we question. the rates we majority do to freight basis was the specific and XX diesel landed. rates back see due appreciate expense domestic freight of contracts, John, way saw the FY I cost receipts. year. fuel with unlikely have. Great. where to tailwind transportation-related leverage we're the we to of basis drive continue this discussed. -- leverage of latest addition, XX in fuel as in XXXX. pleased leverage And We're as previously pleased points, through But in have all favorable the savings about quarter, of the we've points expense, Freight our continue first here. initiatives leverage finalized to recently But and We the were to round with freight to of due of timing described, freight freight was should become all We expect a to to get modest we 'XX begun

John Kernan

the What's current on in repurchase balance the the impact QX. model. converts Got to if can release, tricky retiring share for or program the convertible sheet be also today's liability wondering in David, become sometimes the any to pretty looks there's Just stock plan our accounting these? they've count, just it. on notes like

David Glick

John. asked good about you converts, Thanks, the Glad question. Appreciate.

Before your on current $XXX with our the I directly, $X.X about million talk ABL just I our We question in quarter about We our want in feel to very borrowings cash. liquidity. had about liquidity. total We good answer no liquidity. ended billion and

the yes, last would we've EBITDA few would grow, of years. Getting they as hopefully debt with we're on the continues improvement seen over a ratios our comfortable levels, we notes, the became that liability. total our current stay Secondly, your expect trend question really on to XXXX and convertible our to leverage healthy

there's quarter, XXXX. of this that April outstanding mature $XXX end of As the million in

amount reduce of new the while we notes out that to John, converts recall, on transaction million was sheet, you in December allowing go extended purposely to outstanding to it the $XXX and time, our converts XXXX. our convertible And amend balance XXXX referenced, XXXX, extend intention an convert to you million in maturity. the total of the and $XXX If we did at ultimately

we the upfront rating we we're $XXX I that your socialized So as on liquidity next principal back $XXX comfortable year, bought noted year. proxy last completed [ about with which question April. earnings given strategy as the agencies we And year you transaction million And we viewed million on year. you this of might we QX referenced, our that or share million for ] QX the we between as of buybacks, a retiring our transaction. Getting year's hand -- sort to this authorization. $XXX last last of current stock of the very strong price level before reasonable indicated heart press just remaining and last call with have buybacks. that And target cash we that release, Since million a the of on expect, we buybacks was convert the in about of used completed in probably $XXX is this

as cash know look, liquidity only flow planned. value intention given what share we be, So our our that assuming consistently would it have to shares performance to we as as approach generate our would repurchases. to continues well back in And as expect financial well, we we that not buy in a but our consistent continue XXXX shareholders strong XXXX

Operator

Next question the with Roach Brooke Sachs. Goldman comes from line of

Brooke Roach

their And that announced have on these Michael, reducing several your strategy Burlington? What is reaction? retailers or price equation. they're recently sharpening and could impact what lower have value or prices

Michael O'Sullivan

Brooke, for the thank you question.

sharpening reducing about retailers of feel prices. does recently a talked It have right. like back or their rolling You're number

to retailer, off-price critically value important an As relative is us.

pay pretty to in we competitors why a That close think shape. what we few I good there So are are are reasons attention said, saying.

Firstly, years. many the retailers last over few raised prices their

Now having roll some that the to are prices. we consumer In it's retailers not back, not contrast, that surprising have raised their that is back. prices pushing

In for customer are the than under fact, The our that our X now end ago. since core that is retails reason has economic pressure were average they significant been of lower XXXX. years

stay sharp to very, on value. had we've So very

a starting So I in like position. strong already value very from feel words, other we're

are other merchants left in department the styles, assortments, and specialty and the and our what's through in not our looking Secondly, e-commerce the week. what's looking stores, working retailers. they're clearance prices, rack. stores the at websites what's Off-price every stores, They're competitors'

have As adjustment. it's merchandising if moment a respond that means better turning. than we had very before X.X, ago, I make visibility on we what's mentioned with can how well ever an we our and need floor to quickly into we've That

taking in at markdowns. higher in and values may The later some And the need gross case further worth It's record fewer guidance, that to value room calling reported we've But of third case we already even discussed that build we pass room historic we guidance Burlington. along to we're thing this and quarter final make first to order that those XX.X% have that and is driving sharpen a today I'd even in than for We the margin is our turning stronger. the say we year favorability produce out within markup for left in shoppers. XXXX. that margins our there. QX more our to faster by need think today It's QX have we've favorability

Brooke Roach

helpful. really That's

on to the that given margin the regular selling on for you move on year, from and elaborate you the of merchandise expectations throughout trend takes relative can on point year? mark on Kristin, versus last the year-on-year price puts as some clearance For

Kristin Wolfe

talked we forward little feel bit an have opportunity opportunity And than and part a to there's turn. faster higher you Sure. faster markdowns. faster certainly lower No, we Higher about sales of on I'd slower like some the that's going first margin opportunity on question. feel Maybe quarter thereby that Go inventory margin. still of margin of say the earlier. it's merch as of think part a looking opportunity based really that turn and feel like improved saw turn on margin basis clearance, with an in but faster like peers turns, -- do forward, turn continue good drive markdowns. We of we not lower there's opportunity independent as much that's -- our XXX lower seeing do faster a merchandise merch at there points that, I to a markup, turn. We

Operator

the Next from question Alex line comes Straton Stanley. of Morgan with

Alexandra Straton

openings. Just firstly, into new to I store dive wanted

to customers you you then And open you're these taking think up you stores, if are customers attracting from? you are, do Burlington. think who new do new you As

Michael O'Sullivan

question. that's Alex, great a

remarks, QX growth As up of versus total we versus growth XXXX. the mentioned of XX% QX top XXXX in versus XX% on prepared QX that -- in was positive of was itself sales And XXXX.

to our of those stores geographies we're long are new obviously, that a our said, been most incremental numbers a time. and presence. around That heavily already And have we for drawing customers stores. has So Burlington indicate markets where opening in

into walk intents if day. What's they're exciting our to retailer. purposes, stores Burlington others what years mother back is the it's one when are them to of many a It many that, So as in in their today, data actually walking buy is shopped the different our new. that feels and in new completely into are some our Burlington brought all into walking us. maybe ago, completely for essentially shoppers But of a they customers yes, we're like coat these seeing a stores new and

We yes, customers believe opening new program So another. store or our way that new one is to Burlington. attracting

On last of not these single there one source. part coming the would are I your from. that where is customers question, say

are macro specialty retail for market of own know share very specialty we value. department our That a like Of as losing. best that stores, customers that space formats. such off-price up course, are see heavily and the seems with level, can but And cross-shop retail large, our certain fragmented that and reasonable don't year-on-year. data, and other we We a the department share influence said, losing customer are that picking a stores, there they that are operate be at stores formats it stores some surveys we have must struggling we looking specific and from in competitive e-commerce

we the from So share, market competitors. can think, the of best I offer value, if wide is implication retail draw range for us a then we

Alexandra Straton

to relocated side, looks you'll there? quarter. of Great. Can then you the on relocate? closed or stores like just second on was how or think And a Maybe provide store on But closures. just It flip many going what more one need you additional color the you stores ultimately a do close in lot for me.

Kristin Wolfe

quarter. that XX stores On relocate It's of quarter, But or on basis, a over in net a we take gross closed new we little we close first in X,XXX good It's a means XX stores I'll a opened stores. one. question. XX number new our Kristin. of opened did the stores. Alex, We relocated or stores the which first base

the XX or we year, open to plan relocate for and about we close XXX gross stores, new approximately to stores. So plan

plan do broadly means approximately these leases the XXX to or trade more available. XXX we across in demographics. moving next that moving X into as older of centers. tertiary And or So is this be XX secondary tend out to relocate become traffic traffic over close of new to we this oversized And to several and stores over higher representative tend we're centers really to years. expect about higher locations income years in year next that what stores expire the centers We're

Operator

Yih Barclays. Next question with comes from of Adrienne the line

Adrienne Yih-Tennant

on there's expecting this? and same on the through quarter AUR, add you the let gains transition We're are how from traffic quarter-to-date? those then that UPT the comp drivers rest the Great. QX my that like and mentioned through me drove deleverage Great rate What year? deleverage start growth you maybe in QX stability of you payroll. that And May other on hearing store my some into year. on Michael, comment And congratulations. is follow-up, of the the of some and And then turnover to on retailers are can sort slowing. hourly Kristin, in average

Kristin Wolfe

I'll questions. your of Adrienne, take both

components the of on comp. was first The

increase February. And April that likes, the conversion. opening it than store quarter tells both we both think and the because drivers I drove that and that's was primary really we sees quarter, the as conversion great she first business the AUR what mix were moved quarter. in Higher as in units in metrics comp comes and period question stronger then transaction our of continued conversion quarter second of improved the down our the payroll. would you were expect, slightly due she in she traffic So up content and on Together, when the to is on conversion. in slightly. price in focus per in was comp through points were your March, and Traffic and see us transactions, the store, value total

mentioned XX driven increased So expenses, rent it's and We & in Beyond that good Bed prepared it by the Bath was dark deleverage was basis primarily question. in SG&A points, a investments store payroll. excluding remarks,

As conditions a and clean, neat, store early to thought had our were shopping improve shop. easy in to XXXX, improve we opportunity to stores experience ensure we reminder, customer

in of a SG&A can around X% back made in year, And purposeful last fall in store comp. we payroll we of lap at year. a leverage investment this you opportunity, payroll this typically, half this address we'll expect see to investment So and the beginning that the

part last and market was plan we by around for there and market-related we of store obviously, the stability a legislative approach plan think our the your We market-by-market question we're competitive approach, working. And as increases, seeing a to also market be to seems for, but tend I take increases. wage wages.

Operator

Dana Telsey Telsey last comes line Group. the with Advisory Our from of question

Dana Telsey

or they Congratulations now? the Bed on Are on the How Bed results. questions. they saw update & open Beyond the that Bath X $X.XX Regards on are to that behind are all are Beyond Bath & I only they onetime likely secondly, bankruptcy you picked And you? And expenses Any in auction. to doing? stores? update just open took? of stores the detail this estate, leases those all up real some you Any year? the And

Kristin Wolfe

Bed early, Bath still feel Beyond about we yes, for very questions. Dana, but It's the stores. thanks these good &

achieve think a that expectation. Bed Bath the in have year, that XXXX, and fiscal we of as locations this strip was last should Beyond about In net & Of this Bath second of XXXX, expect fall year Beyond quarter far $X & expect those the for first opened have costs And about Bed & could QX million. modeled of million us. And it's Beyond to of quarter the as behind of in that question. will Bath reminder, or I will $XX & Bed XXX million. associated in we stores We after we good these became Yes, were we're expect characteristics opened, we Beyond XXXX, many busy $X that, for then or open We're store sites that national million. new in few really looking but for. these question looking store we the with the although traffic, year. XX beat rent only. all available expense. $X.XX cost that, guidance, co-tenants, expect & of In average, majority we fourth And fiscal group XXXX, the QX, it's and first malls, Beyond rent over strong were potential, bankruptcy we in [indiscernible] scrutinize QX. And dark few the stragglers XX those new it 'XX, XX stores, $X cost very we the million that full of will $X.XX a be $X And into as these, on your As Bath Bed And only Bed sales rent Bath store the clear we year in in about the volumes were on our be a locations dark the the had first quarter, remaining XX second hurdles. evaluated about really a the in Bed financial largely sales Bath in quarter. was possible

of these our handful 'XX. join likely or on even in a pipeline just these in based they'll our 'XX And secure if analysis, stores, we locations. So we'll secure

in we'll ongoing more to question. the still of update the offer August, as there. detailed So some Thanks plan negotiations for

Operator

questions time. Michael over call turn at no are Thank you. the There this I further back O'Sullivan, to you. Mr.

Michael O'Sullivan

this talking call you second everyone fiscal you thanking to Thank for look on interest results. your Burlington time Stores. close to August Let in XXXX forward our quarter discuss by for We me your to in today. again

Operator

This call. concludes today's conference

disconnect. now may You

Burlington Stores (BURL) 30 May 242025 Q1 Earnings call transcript