Burlington Coat Factory's cleaner inventories churn strong Q2 results
HTT Staff -- Home Textiles Today, 9/19/2012 2:11:44 PM
Burlington, N.J. - Keen on streamlining its inventories and removing superfluous skus for a more focused offering, Burlington Coat Factory delivered robust EBITDA growth during its second quarter.
The company, which is owned by Bain Capital, reported a 32.9% increase in adjusted EBITDA (earnings before interest, tax, depreciation and amortization) to $30.7 million during the quarter ended July 28. Results were driven by its overall sales growth and comp gains, according to Tom Kingsbury, president and ceo. Gross margin grew 100 basis points.
Total revenues for the quarter increased 8.9% to $871.7 million. Net sales were also up 8.9% to $864.2 million, and comparative store sales increased 2.9%.
"We continue to stay focused on our inventory management, which resulted in a 21% faster inventory turnover, reduced aged goods, and more fresh values for our customers," said Kingsbury.
Year-to-date, adjusted EBITDA fell 2.8% to $100.6 million, which the company attributed to investments made during the third and fourth quarters of the previous fiscal year that have not annualized.
Total revenue for the six-month period grew 7.2% to $1.86 billion, with sales up 7.2% to $1.846.6 billion, and comps rises 1.7%.
Burlington Coat Factory operates 482 stores in 44 states and Puerto Rico.
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