On behalf of the entire Board and management team, I would like to thank Marc for his dedication and valuable contributions during his 11-year career at Burlington. Marc has played a significant role in improving our financial and operational performance and strengthening our position as a leader in the off-price retail business. We wish him well in his future endeavors, said Thomas Kingsbury, Executive Chairman.
John has been an active and valuable contributor to the Burlington management team since 2011 and has been leading our finance function for the past several years. We are fortunate to have a proven leader who possesses the important business acumen and experience to ensure a seamless transition, added Mr. Kingsbury.
Mr. Katz said, It has been an honor and a privilege to be part of the Burlington story for the last 11 years and help lead the Company through a period of great transformation, growth and success. I am extremely proud of what we have accomplished together. I wish the entire Burlington team all the best in the years to come.
Mr. Kingsbury concluded, Today is an exciting day for Burlington, as Michael OSullivan begins as our Chief Executive Officer. Our future is bright, and I look forward to working closely with the Board, Michael, Jennifer Vecchio, our President and Chief Merchandising Officer, and the rest of our leadership team to ensure a successful leadership transition.
About John Crimmins Mr. Crimmins has been with the Company since 2011, most recently serving as Executive Vice President, Finance and Chief Accounting Officer. Before joining Burlington Stores, Mr. Crimmins held various roles at The Timberland Company including Chief Financial Officer, and Corporate Controller and Chief Accounting Officer from 2002 to 2009.
About Burlington Stores, Inc.Burlington Stores, Inc., headquartered in New Jersey, is a nationally recognized off-price retailer with Fiscal 2018 net sales of $6.6 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 691 stores as of the end of the second quarter of Fiscal 2019, inclusive of an internet store, in 45 states and Puerto Rico, principally under the name Burlington Stores. The Companys stores offer an extensive selection of in-season, fashion-focused merchandise at up to 60% off other retailers prices, including womens ready-to-wear apparel, menswear, youth apparel, baby, beauty, footwear, accessories, home and coats.
Safe Harbor for Forward-Looking and Cautionary StatementsThis release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act). All statements other than statements of historical fact included in this release are forward-looking statements. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. We do not undertake to publicly update or revise our forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied in such statements will not be realized. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from expectations, including those described from time to time in our filings with the Securities and Exchange Commission. For each of these factors, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended.
The U.S.-China trade war has been generally bad for retail stocks, but its turning out to be very good for discount-clothing chain Burlington Stores (BURL – Get Report) — which is well-positioned to cash in on the sectors woes, Jim Cramer says.
“Sometimes the market is so stupid it gives you amazing opportunities that you have no right to have — [the] opportunity to buy stocks that are being pulled down by trade-talk snags when those stocks represent companies that are precisely the biggest winners when the talks appear broken down,” Cramer said during an exclusive video-conference call with members of his Action Alerts PLUS club for investors.
Cramer said that his charitable trust bought BURL shares earlier this year when the stock was getting dragged down in the retail sectors undertow every time trade tensions ratcheted up. Retail stocks have generally suffered from the trade war as investors assume U.S. tariffs on the many Chinese-made goods that stores sell will shrink profit margins.
But Cramer said that every time retailers shares took a hit from the latest negative trade-war headlines, his trust bought more Burlington shares. Thats because BURL actually stands to gain — big time — from the struggles that full-price department-store chains face as they get hammered by tariffs.
Cramer said that when these retailers are hurting and need cash, theyll dump inventory at cheap prices on Burlington and other discount chains. “Thats why we had the conviction to just stand there and buy Burlington into a real sell-off in retail. Sure enough, not that long ago the company reported [earnings] and shot the lights out — for precisely the reasons we laid out for you,” he said.
“In hindsight it looks so easy, [but] in truth, it was anything but, because the stock trades wildly and the last quarter wasnt good,” Cramer said. However, the expert said he had faith in Burlington in part because he met company executives and got assurances that they wouldnt repeat some bad fashion selections that had hurt the stock previously.
“You needed faith [in the company]. I had it — especially because it was the last quarter of retiring [CEO] Tom Kingsbury, a hero of mine,” Cramer said. “And you had to believe in your thesis and your conviction that the sellers were just plain wrong. And thats what happened — and thats how we hit the jackpot.”
Joining Action Alerts PLUS gives you access to all of Cramers monthly private video-conference calls and provides you with a host of other benefits, including: