Same-store sales rose 8.4% from the third quarter of last year, with total sales up 13.9%. Net sales were $969.5 million, compared to $851.0 for Q3 of 2004.
For the first three quarters, net income was $89.5 million, compared to the first nine months of fiscal 2004 with $6.4 million net income. The same-stores increase is attributed to a cold fall and winter as well as an overall stronger economy.
A double-digit comparative sales increase in December (10.1%, with a 4.9% increase in January and a 7.9% increase in February) helped to reduce gross margins as a percentage of sales from 64.5% in fiscal 2004 to 63.1%.
"With the shift in Easter [it was celebrated in March this year, two weeks earlier than normal,] you're going to see much stronger sales comparisons in the month of March." said vice president, CAO and treasurer Robert L. LaPenta, "You're going to give some of that back in April."
During the first three quarters, the company opened six Burlington Coat Factory stores, three free-standing MJM Designer Shoe stores and one Super Baby Depot store. Four Burlington Coat Factory stores were relocated, and two were switched from the Decelle banner to Cohoes Fashion. The company has 358 stores in 42 states.In the final quarter, the company plans to open three Burlington Coat Factories, one MJM and one Super Baby Depot. Two other stores are slated for relocation.
Executives also noted that the mergers such as the one between Federated Department Stores and May Department Stores could lead to store closures and opportunities for Burlington to expand. "[The store closures] can work to our advantage ," says Steven Millstein EVP, general merchandising manager. "I think we'll look at each locations on an individual basis, but obviously if there's a lot of real estate out there, there should be opportunities." Laid-off personnel could also be available from the store closings, he said.
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