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Burlington appoints former Staples CEO to board

Published 26/11/2024, 21:22
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BURLINGTON, N.J. - Burlington Stores, Inc. (NYSE: NYSE:BURL), a prominent off-price retailer, announced the appointment of Shira Goodman, the former CEO of Staples, Inc., to its Board of Directors and Audit Committee, effective January 1, 2025. John Mahoney, Chairman of the Board, expressed confidence that Goodman's extensive experience will strengthen the board's oversight of the company's strategic growth.

Goodman brings nearly three decades of retail industry expertise, having held various leadership roles at Staples since 1992, including CEO from September 2016 to January 2018. Her experience extends to serving as an Advisory Director to Charlesbank Capital Partners (WA:CPAP) and board roles with CarMax (NYSE:KMX), Inc., CBRE Group (NYSE:CBRE), Inc., Henry Schein (NASDAQ:HSIC), Inc., and The Stride Rite Corporation.

Michael O’Sullivan, CEO of Burlington, highlighted Goodman's anticipated contributions to the company's "Burlington 2.0" strategy, which aims to drive sales and earnings growth. Goodman herself expressed eagerness to join the board and contribute to Burlington’s future success.

Burlington Stores, headquartered in New Jersey, is known for offering up to 60% off other retailers' prices on a variety of merchandise. With Fiscal 2023 net sales of $9.7 billion, the company operates 1,103 stores across 46 states, Washington D.C., and Puerto Rico.

This board appointment comes as part of Burlington's ongoing efforts to expand its leadership team and enhance corporate governance. The company's strategic initiatives and leadership changes are closely monitored by investors and industry analysts, as they can impact the company's performance and stock valuation.

The information in this article is based on a press release statement from Burlington Stores, Inc.

In other recent news, Burlington Stores reported a strong financial performance in the third quarter of 2024, with total sales rising by 11% and adjusted earnings per share increasing by 41% to $1.55. The company's comparable store sales saw a modest 1% increase, with an underlying trend of approximately 4% if weather impacts were excluded. Despite a warmer October affecting sales of cold weather items, Burlington Stores remains resilient with robust growth.

The company's expansion strategy is also in full swing, having opened 147 new stores in 2024, and projecting 101 net new stores by year-end. Burlington Stores has set its sight on opening 100 net new stores in 2025, with a long-term goal of adding 500 new stores between 2024-2028.

Recent developments also highlight the company's strategic initiatives, dubbed "Burlington 2.0," which aim to enhance merchandising, supply chain, and store operations. Notably, Burlington Stores is implementing new sales trending processes and store-level sales algorithms to improve its operations.

Looking ahead, the company expects high single-digit total sales growth in 2025, with operating margin projected to expand modestly by 20-30 basis points. Amidst these developments, Burlington Stores maintains its resilience in the face of external economic challenges, including potential impacts of tariffs, thanks to its low direct import exposure of about 8%.

InvestingPro Insights

Burlington Stores' recent appointment of Shira Goodman to its Board of Directors aligns with the company's strategic growth initiatives, particularly its "Burlington 2.0" strategy. This move comes at a time when Burlington is experiencing significant financial momentum, as evidenced by recent InvestingPro data.

According to InvestingPro, Burlington's market capitalization stands at $18.14 billion, reflecting its substantial presence in the off-price retail sector. The company's revenue growth of 12.62% over the last twelve months demonstrates its ability to expand in a competitive market environment. This growth is particularly noteworthy given Burlington's already impressive annual revenue of $10.23 billion.

InvestingPro Tips highlight that Burlington is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.68. This suggests that the stock may be undervalued considering its growth prospects, which could be of interest to value-oriented investors.

The company's strong financial performance is further underscored by its impressive stock returns. InvestingPro data shows a one-year price total return of 69.13%, significantly outperforming the broader market. This robust performance has pushed the stock price to 96.3% of its 52-week high, indicating strong investor confidence in Burlington's business model and growth strategy.

It's worth noting that InvestingPro offers 15 additional tips for Burlington Stores, providing investors with a comprehensive analysis of the company's financial health and market position. These insights could be particularly valuable as the company integrates new leadership and continues to execute its growth plans.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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