Burlington Stores, Inc. (BURL) has reported a 27.12 percent rise in profit for the quarter ended Jan. 28, 2017. The company has earned $125.56 million in the quarter, compared with $98.77 million for the same period last year. On the other hand, adjusted net income for the quarter stood at $126.13 million, or $1.78 a share compared with $109.26 million or $1.49 a share, a year ago.

Revenue during the quarter grew 9.27 percent to $1,692.30 million from $1,548.68 million in the previous year period. Gross margin for the quarter expanded 73 basis points over the previous year period to 42.02 percent. Total expenses were 88.18 percent of quarterly revenues, down from 89.17 percent for the same period last year. This has led to an improvement of 99 basis points in operating margin to 11.82 percent.

Operating income for the quarter was $200.02 million, compared with $167.78 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $254.92 million compared with $224.65 million in the prior year period. At the same time, adjusted EBITDA margin improved 56 basis points in the quarter to 15.06 percent from 14.51 percent in the last year period.

Tom Kingsbury, chief executive officer stated, "We are very pleased that we ended the year on a high note, continuing our favorable momentum from the first three quarters of 2016. For the year, we delivered 9.2% total sales growth, a 100 basis point expansion in Adjusted EBITDA margin rate, and a 40% increase in Adjusted Net Income per Share. In addition, we ended the year with reductions in both comparable store and aged inventories. I want to thank our entire organization for their contributions to our strong results."

For financial year 2017, Burlington Stores, Inc. expects revenue to grow in the range of 7.50 percent to 8.50 percent. The company projects diluted earnings per share to be in the range of $3.77 to $3.87 on adjusted basis.

For the first-quarter 2017, Burlington Stores, Inc. expects revenue to grow in the range of 5 percent to 6 percent. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.67 to $0.70.

The company has spent $180.35 million cash to meet investing activities during the year as against cash outgo of $194.73 million in the last year.

The company has spent $361.41 million cash to carry out financing activities during the year as against cash outgo of $137.16 million in the last year period.

Cash and cash equivalents stood at $81.60 million as on Jan. 28, 2017, up 290.14 percent or $60.68 million from $20.92 million on Jan. 30, 2016.

Working capital turns negative

Working capital of Burlington Stores, Inc. has turned negative to $68.51 million on Jan. 28, 2017 from positive $46.39 million on Jan. 30, 2016. Current ratio was at 0.93 as on Jan. 28, 2017, down from 1.05 on Jan. 30, 2016.

Cash conversion cycle (CCC) has decreased to 4 days for the quarter from 10 days for the last year period. Days sales outstanding were almost stable at 1 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 33 days for the quarter compared with 39 days for the previous year period. At the same time, days payable outstanding was almost stable at 30 days for the quarter, when compared with the previous year period.