Burlington Stores(BURL)2025-03-17 21:16Store Operations and Expansion - Burlington Stores operates 1,108 stores as of February 1, 2025, up from 1,007 stores at the beginning of Fiscal 2024, reflecting a net increase of 116 stores during the year[20]. - The total gross square footage of all stores increased to 51.8 million square feet in Fiscal 2024, with selling square footage reaching 32.7 million square feet[20]. - The company aims to expand its store base to 2,000 locations in the long term, leveraging its smaller store prototype and market opportunities[19]. Sales and Product Categories - Burlington's sales by major product category for Fiscal 2024 included 21% ladies apparel, 27% accessories and shoes, and 20% home goods[32]. Distribution and Logistics - The company has six distribution centers that shipped over 99% of merchandise units to stores in Fiscal 2024, with a new distribution center in Ellabell, Georgia expected to be operational by Fiscal 2026[21][22]. Workforce and Employment - As of February 1, 2025, Burlington employed 77,532 associates, with 78% being part-time or seasonal[36]. - Burlington's commitment to employee development includes a blended learning approach and competitive compensation, with hourly wages increased annually since 2010[40][41]. Customer Demographics and Marketing - The core customer demographic is aged 25-49, ethnically diverse, with an annual household income of 100,000, primarily residing in mid- to large-sized metropolitan areas[42]. - Burlington's marketing strategy includes a mix of television, radio, digital, and social media to engage customers effectively[43]. Financial Performance and Strategy - The company has a long-term target of increasing profitability through comparable store sales growth and enhancing operating margins[11]. - The business experiences seasonal influences, with higher sales and net income typically in the second half of the year, particularly during back-to-school and holiday seasons[45]. Debt and Financial Management - As of September 24, 2024, the company refinanced 1,250 million, extending the maturity date to September 24, 2031, and reducing interest rate margins[261]. - The company terminated a 500 million interest rate swap at a blended rate of 2.83%[263]. - As of February 1, 2025, the company had 4.4 million annually[265]. - The company’s ability to meet interest payment obligations depends on future performance and prevailing economic conditions, with potential adverse effects if cash flow is insufficient[266].