American off-price retailer, Burlington Stores Inc. released its first quarter results for the 2015 fiscal year on Tuesday, reporting that it more than doubled its net income for the 13-week period ended May 2 to $25.69 million, up from last year’s $11.77 million. The company also said it plans to open 25 new stores during fiscal 2015.
Net sales increased 4.9% to $1.18 million, while comparable store sales rose 0.8% compared to a 2.7% increase the same period last year.
“While our comp sales were positive for the ninth consecutive quarter, we were negatively impacted by the timing of IRS tax refunds, lower markdown sales due to significantly less markdown inventory, increased store closures due to weather, and receipt flow issues in three key Easter businesses,” chairman and CEO Tom Kingsbury, said. “With that said, I am optimistic about our business as comparable store sales have accelerated and we are in a great inventory position to take advantage of the many opportunities we see in the market place.”
Burlington named a new executive vice president and chief merchandising officer, Jennifer Vecchio, who previously worked at Ross for 14 years, where her last position was executive VP of merchandising for men’s and kids. She has consulted for the company since January 2014.
The company also said it would raise wages to at least $9.00 per hour for all full time and part-time associates who have been working with them for six months or more, effective July 5.
Burlington’s Board of Directors authorized a $200 million share repurchase program, a move Kingsbury said reflects the company’s commitment to use its strong cash flow to benefit shareholders.
For the second quarter, Burlington expects net sales to grow to 7 percent or 8 percent and same store sales to increase to 3 percent or 4 percent. For the full fiscal year, it predicts net sales will reach around 6 percent or 7 percent with same store sales between 2 percent or 3 percent.