Sean Ryan Real Estate New Jersey
BURLINGTON, NJ–More jackets were sold, but there's less money in the till at the end of the day for Burlington Coat Factory. Sales for Q3 were just over $1 billion, compared to $968.1 million for Q3 results a year ago. Despite this, income from continuing operations during this quarter was $58.3 million, compared to $66.1 million a year ago.
Cost of sales and selling/administrative expenses are both notably higher than last year, largely due to freight increases. Robert LaPenta, chief accounting officer and treasurer, said that several initiatives are in the works to cut down on freight charges, but could not specify the initiatives at this time. The company had opened a large distribution center in Edgewater Park, NJ two years ago, and has another one in San Bernardino, CA scheduled to open within a month.
Same-store sales for the quarter were up 3.5% from last year's third quarter, and total sales were up 5.7%. Rent expense for the quarter was $33.9 million.
This is the first quarterly report since the January announcement that Boston-based Bain Capital Partners was purchasing Burlington for $2.06 billion. Mark Nesci, chief operating officer, announced that no comments would be made about the merger until today's shareholder meeting.
For the previous nine months, total sales were $2.6 billion, compared to $2.4 billion for the first nine months of last year. Same-store sales for the previous nine months were up 5.5%, and total sales in that period were up 8.5% from last year.
During the previous nine months, eight Burlington Coat Factory stores and three MJM Designer Shoe stores were opened, five stores were relocated within the same trading market, four stores were closed, and another three were temporarily closed due to hurricanes Katrina and Wilma.
Burlington Coat Factory operates 366 stores in 42 states, not counting three hurricane-damaged stores, which don't have reopening dates yet, most under the "Burlington Coat Factory" name.
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