BURLINGTON, N.J., March 19, 2020 (GLOBE NEWSWIRE) -- Burlington Stores, Inc. (NYSE: BURL), a nationally recognized off-price retailer of high-quality, branded apparel at everyday low prices, provided an update regarding the impact of COVID-19 on its business operations.
Michael O’Sullivan, CEO, stated, “The health and safety of our associates and customers are our highest priorities. With this in mind, we have closed our corporate offices, enabling our associates to work from home, and are closing our retail locations based on guidance from government and health officials. As of today, we have temporarily closed approximately 100 stores across the country, reduced store hours for all of our stores, and continue to evaluate additional closures. We are also taking steps in our stores that remain open to follow guidelines recommended by the relevant government authorities to keep our stores clean and sanitized. In addition, in our stores that are temporarily closed, our associates will receive financial support for two weeks.
We continue to have confidence in our strategic initiatives and longer term growth potential. However, the spread of the COVID-19 virus is clearly having a material impact on the whole retail sector. In this time of unprecedented disruption and uncertainty, we are carefully managing our expenses, inventory receipts, capital expenditures and balance sheet.”
As the Company indicated on its March 5, 2020 earnings conference call, first quarter and full year Fiscal 2020 sales and earnings guidance did not factor in the potential impact of the COVID-19 virus on our business. Given the uncertainty regarding the potential duration and impact of the virus on our store operations, the Company is withdrawing the first quarter and full year 2020 guidance issued on March 5, 2020. The Company is not providing an updated outlook at this time.
The Company is now taking a more conservative approach to managing its cash flow given the uncertainty regarding the duration of the COVID-19 virus on store traffic, and is carefully managing operating expenses, working capital, and capital expenditures during this period, as well as suspending its share repurchase program. As disclosed on its fourth quarter earnings call on March 5, 2020, the Company began the fiscal year with approximately $400 million in cash, and earlier this week augmented its cash balance by borrowing $400 million on its $600 million ABL facility as a precautionary measure in order to facilitate increased financial flexibility.
About Burlington Stores, Inc.
Burlington Stores, Inc., headquartered in New Jersey, is a nationally recognized off-price retailer with Fiscal 2019 net sales of $7.3 billion. The Company is a Fortune 500 company and its common stock is traded on the New York Stock Exchange under the ticker symbol “BURL.” The Company operated 727 stores as of the end of the fourth quarter of Fiscal 2019 in 45 states and Puerto Rico, principally under the name Burlington Stores. The Company’s stores offer an extensive selection of in-season, fashion-focused merchandise at up to 60% off other retailers' prices, including women’s ready-to-wear apparel, menswear, youth apparel, baby, beauty, footwear, accessories, home, toys, gifts and coats.
For more information about the Company, visit www.burlington.com.
