Burlington Stores Inc (NYSE:BURL) stock fell 0.57% (As on Nov 24, 11:20:40 AM UTC-4, Source: Google Finance) after the company posted stronger-than-expected third-quarter results. The company held $1.2 billion in cash and equivalents as of October 30, 2021. Cash provided by operating activities for the nine months totaled $608 million. The Company ended the third quarter with $1,629 million in outstanding total debt, including $953 million on its Term Loan Facility, $645 million in Convertible Notes, and no borrowings on the ABL Facility. Burlington Stores did not provide sales or earnings guidance for FY21 at this time., citing uncertainty surrounding the pace of the recovery of consumer demand and the ongoing COVID-19 pandemic. Net income was $14 million, vs $96 million for the third quarter of Fiscal 2019. This decrease was primarily due to the $86 million loss on debt extinguishment charge.
BURL in the third quarter of FY 21 has reported the adjusted earnings per share of $1.36, beating the analysts’ estimates for the adjusted earnings per share of $1.26. The company had reported the adjusted revenue growth of 38.2 percent to $2.3 billion in the third quarter of FY 21, beating the analysts’ estimates for revenue of $2.23 billion. The comparable store sales increased 16% compared to the third quarter of Fiscal 2019. Gross margin rate was 41.4% vs. 42.4% for the third quarter of Fiscal 2019, a decrease of 100 basis points. Merchandise margins increased 80 basis points, which was more than offset by a 180 basis point increase in freight expense. Adjusted EBITDA was $205 million vs. $192 million in the third quarter of Fiscal 2019, a decrease of 190 basis points as a percentage of sales. Adjusted EBIT was $140 million, flat vs. the third quarter of Fiscal 2019, a decrease of 180 basis points as a percentage of sales.
Additionally, the company during the third quarter the Company repurchased 512,363 shares of common stock for $150 million under its share repurchase program. As of the end of the third quarter, the Company had $250 million remaining on its current share repurchase authorization.
For Q4, the company now expects the full year operating margin to be flat versus 2019.