Burlington Stores announced its results for the fourth quarter ended January 31, 2015. Q4 comparable store sales increased 6.7%, which follows a comparable store sales increase of 4% in the fourth quarter of last year.
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Net sales increased 11.3%, or $151.1 million, to $1,485.4 million. This increase includes the 6.7% increase in comparable store sales, as well as an increase of $66.9 million from new and non-comparable stores.
Gross margin expanded by 50 basis points to 42.2% from 41.7% in the fourth quarter last year, partially offset by a 40 basis point increase in product sourcing costs that are included in selling, general and administrative expenses (SG&A).
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% vs. 24.6% in the fourth quarter of last year driven primarily 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.
Adjusted EBITDA increased 15.6%, 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 amortization expense, exclusive of net favorable lease amortization, increased $1.8 million to $36.9 million.
Interest expense decreased $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. The adjusted effective tax rate was 37.1% vs. 38.8% last year, driven primarily by NJ state tax credits associated with our new corporate headquarters.
Adjusted Net Income was $108.9 million vs. $81 million last year, or $1.43 per share vs. $1.07 per share last year. Diluted shares outstanding were 76.3 million vs. 75.4 million diluted shares outstanding last year. ■