Burlington Stores, Inc. (BURL) Q3 2022 Earnings Call Transcript

For the period ending October 29, 2022

November 22, 2022 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning and welcome to Burlington Stores Third Quarter 2022 Earnings Call and Webcast. All participants are in a listen-only mode. After the speaker’s presentation we will conduct a question-and-answer session. [Operator Instructions]. As a reminder this conference call is being recorded. I'd now like to turn the call over to David Glick, Group Senior Vice President, Treasurer and Investor Relations. Please go ahead Mr. Glick.

David Glick

Thank you, operator and good morning, everyone. We appreciate everyone's participation in today's conference call to discuss Burlington's fiscal 2022 third quarter operating results. Our presenters today are Michael O'Sullivan, our Chief Executive Officer and Kristin Wolfe, our EVP and Chief Financial Officer.

Before I turn the call over to Michael, I would like to inform listeners that this call may not be transcribed, recorded or broadcast without our expressed permission. A replay of the call will be available until November 29, 2022. We take no responsibility for inaccuracies that may appear in transcripts of this call by third-parties. Our remarks and the Q&A that follows are copyrighted today by Burlington Stores. Remarks made on this call concerning future expectations, events, strategies, objectives, trends, or projected financial results are subject to certain risks and uncertainties. Actual results may differ materially from those that are projected in such forward-looking statements. Such risks and uncertainties include those that are described in the company's 10-K for fiscal 2021 and in other filings with the SEC, all of which are expressly incorporated herein by reference.

Please note that the financial results and expectations we discuss today are on a continuing operations basis. Reconciliations of the non-GAAP measures we discuss today to GAAP measures are included in today's press release. Now, here's Michael.

Michael O'Sullivan

Thank you, David. Good morning, everyone and thank you for joining us. I would like to cover four topics this morning; firstly, I will discuss our third quarter results; secondly, I will review our outlook for the fourth quarter; thirdly, I will talk about our 2023 outlook; and finally, I'll offer some comments on the longer term. After that, I will hand over to Kristin to walk through the financial details. Then we will be happy to respond to any questions.

Okay, let's talk about our results. Comp store sales for the third quarter decreased 17%. This was on top of 16% comparable store sales growth last year. As we have done on previous calls, today, when we are describing our comp trend, we will use a three-year geometric stack. This metric is defined in more detail in today's press release. Our three-year geometric stack was minus 3% for the third quarter. This was within our guidance range but still a disappointing result. There were external headwinds that contributed to this comp performance. These headwinds are real and have affected our business all year but today, I do not plan to spend much time talking about these.