FORM 10-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

(Mark One)

or

Commission File No.: 1-8739

BURLINGTON COAT FACTORY WAREHOUSE CORPORATION
(Exact Name of Registrant as specified in its charter)

State or other jurisdiction: Delaware

I.R.S. Employer incorporation or
organization Identification No.: 22-1970303

1830 Route 130, Burlington, New Jersey               08016    
(Address of principal executive offices)           (Zip Code)

Registrant's telephone number,
including area code:          (609) 387-7800

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:     Common Stock, $1.00 par value per share

Name of each exchange
on which registered:     New York Stock Exchange

Securities Registered pursuant to Section 12(g) of the Act:

Title of Class:     None

Page 1 of 61

     Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     YES  X      NO___.

     Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.     [X]

As of July 31, 2002, the number of shares of Common Stock, $1.00 par value, outstanding was 44,478,421.

The documents incorporated by reference into this Form 10K:

Registrant's Proxy Statement to be filed pursuant to
Regulation 14A.

The Part of the Form 10-K into which the document is incorporated:

Page 2 of 61

PART I

Item 1. Business

     Burlington Coat Factory Warehouse Corporation and its subsidiaries (the "Company" or "Burlington Coat") operate, through its Burlington Coat Factory division, a chain of department stores which offer a broad range of moderate to higher priced, current brand name merchandise for men, women and children at prices substantially below traditional full retail prices generally charged by other department and specialty stores. Burlington Coat offers customers a complete line of men's, women's and children's wear and accessories (such as handbags, belts, perfume, watches, etc.) as well as a linens (linens, bath shop items, gifts and luggage) department in two hundred sixty-six of its stores, a children's furniture department in two hundred fifty-one of its stores, and a shoe department in two hundred seventy-three of its stores. The Company's policy of buying significant quantities of merchandise throughout the year, maintaining inventory control and using a "no-frills" merchandising approach, allows it to offer merchandise at prices below traditional full retail prices. Merchandise is displayed on easy access racks, and sales assistance generally is available. Clothing alteration services are available on a limited basis in many stores for an additional charge.

     Burlington Coat's practice of purchasing outerwear early in each fashion season and of reordering in rapid response to sales has enabled it to maintain a large, current and varied selection of outerwear throughout each year. Although the Company believes that this practice helps attract customers to its stores, to the extent the Company maintains a relatively large volume of merchandise, particularly outerwear, the risks related to style changes, weather and other seasonal factors, and economic conditions are necessarily greater than if the Company maintained smaller inventories.

     An important factor in Burlington Coat's operations has been its continued ability to purchase desirable, first-quality current brand labeled merchandise directly from manufacturers on terms at least as favorable as those offered by other department and specialty stores. The Company estimates that over 1,000 manufacturers of apparel, including over 300 manufacturers of outerwear, are represented at the Company's stores, and that no manufacturer accounted for more than 5% of the Company's purchases during the last full fiscal year. The Company does not maintain any long term or exclusive commitments or arrangements to purchase from any manufacturer. No assurance can be given that the Company will be able to continue to purchase such merchandise directly from

Page 3 of 61

     The Company sells its merchandise to retail customers for cash and accepts checks and most major credit cards. The Company's "Cohoes" division also offers its own credit card. In addition, the Company maintains a layaway plan and offers special orders on selected merchandise. It does not offer refunds, except on defective merchandise and certain sales from specialty retail operations, but will exchange merchandise or give store merchandise exchange slips for merchandise returned within a prescribed period of time.

     The Company advertises primarily on television and, to a lesser extent, in regional and local newspapers and radio. During the past three fiscal years, advertising expenditures have averaged approximately 2.4% of total revenues.

     The Company has two major product segments, apparel and home products. The apparel segment includes departments offering all clothing items for men, women and children and apparel accessories such as shoes, jewelry, perfumes and watches. The home products segment includes departments offering linens, home furnishings, gifts, baby furniture and baby furnishings. Net revenues from the sale of apparel products for fiscal years 2002, 2001 and 2000 were $2.0 billion, $1.9 billion and $1.7 billion, respectively. Net revenues from the sale of home products for fiscal years 2002, 2001 and 2000 were $0.6 billion, $0.5 billion, and $0.5 billion, respectively.

     As of July 31, 2002, the Company operated three hundred seventeen department stores, all but thirty-six of which are located in leased facilities ranging in size (including storage space) from approximately 16,000 to approximately 163,000 square feet, with an average area of approximately 75,700 square feet. Total store gross square footage increased to 24,001,000 square feet, an increase of 10.3% over a year ago. Selling space accounts for over eighty percent of the total area in most stores.

     All of the Company's department stores are either free-standing or are located in shopping malls, strip shopping centers or other commercial complexes. The Company believes that its customers are attracted to its stores principally by the availability of a large assortment of first-quality current brand name merchandise at attractive prices.

Page 4 of 61

     The Company also operates stores under the names "Cohoes Fashions," "Decelle," and "Luxury Linens." Cohoes Fashions offers merchandise in the middle to higher price range. Decelle offers merchandise in the moderate price range for the entire family with an emphasis on children's and youth wear. Luxury Linens is a specialty store for linens, bath shop items, gifts and accessories and offers merchandise in the middle to higher range. The Company also operates one stand-alone store under the name "Totally 4 Kids" and one stand-alone store under the name "Baby Depot". In addition, at fiscal year end the Company operated a chain of nine stand-alone specialty shoe stores offering moderately priced designer and fashion shoes.

     The stores generally are located in close proximity to population centers, other department stores and other retail operations and are usually established near a major highway or thoroughfare, making them easily accessible by automobile. It is likely that the Company would be adversely affected by any conditions which were to result in the reduction of automobile use.

     The Company owns substantially all the equipment used in its stores and believes that its selling space is well utilized and that its equipment is well maintained and suitable for its requirements.

     Some stores contain departments licensed by unaffiliated parties for the sale of items such as lingerie, fragrances, shoes and jewelry. During the fiscal year ended June 1, 2002, the Company's rental income from all of its licensed departments aggregated less than 1% of the Company's total revenues.

     Central distribution, warehousing, ticketing and marking services are extended to approximately fifty-five percent of the dollar volume of the Company's merchandise through its office and warehouse/distribution facility in Burlington, New Jersey. This facility services the Company's present stores. The Company is leasing three additional warehouse facilities of approximately

Page 5 of 61

     Statements made in this report that are forward-looking (within the meaning of the Private Securities Litigation Reform Act of 1995) are not historical facts and involve a number of risks and uncertainties. Such statements include but are not limited to, proposed store openings and closings, proposed capital expenditures, projected financing requirements, proposed developmental projects, projected sales and earnings, and the Company's ability to maintain selling margins. Among the factors that could cause actual results to differ materially are the following: general economic conditions; consumer demand; consumer preferences; weather patterns; competitive factors, including pricing and promotional activities of major competitors; the availability of desirable store locations on suitable terms; the availability, selection and purchasing of attractive merchandise on favorable terms; import risks; the Company's ability to control costs and expenses; unforeseen computer related problems; any unforeseen material loss or casualty; the effect of inflation; and other factors that may be described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied will not be realized.

     Since 1972 when its first store was opened in Burlington, New Jersey, the Company has expanded to two hundred ninety Burlington Coat Factory department stores, five Cohoes Fashions stores, seven Decelle stores and four stand-alone Luxury Linens stores as of July 31, 2002. The Company also operates one stand-alone Totally 4 Kids store, one stand-alone Baby Depot store and nine stand-alone shoe stores.

     At July 31, 2002 the Company operated stores in 42 states and is exploring expansion opportunities both within its current market areas and in other regions. For fiscal 2003, the Company plans to open approximately twenty to thirty additional Burlington Coat Factory department stores. *

Page 6 of 61

     During fiscal 2002, the Company acquired sixteen former Montgomery Ward store locations, many of which were located in traditional malls. Such locations are generally more desirable as they generate higher levels of foot traffic through the stores located in the malls. Should additional locations in traditional malls become available to the Company on acceptable terms, the Company may seek to acquire more such locations. * There can be no assurances, however, that any such locations will become available to the Company on acceptable terms or that, if available, the Company will be successful in acquiring such locations.

     The Company also has planned store expansions and remodelings for approximately eighteen stores.* In addition, the Company has plans to relocate approximately five of its stores to new locations within the same trading market.* The Company continues to monitor store profitability and should economic factors change, some store closings could be possible.

     The Company is constructing a new facility of approximately 650,000 square feet in Edgewater Park, New Jersey. This new facility will expand the Company's warehousing and distribution capacity and allow the Company to increase its percentage of centrally received goods. The new facility is expected to be operational by Spring of 2003.*

     During the Fall of fiscal 2003, the Company intends to launch its stored value card and gift card programs. The cards will be reusable plastic wallet-sized cards that will substantially replace the Company's paper gift certificates and store credits. The cards should allow for improved control over the administration of store credit and gift certificate services. The Company hopes that these cards will be the foundation of its customer loyalty program.*

     In fiscal 1997, the Company began to operate its own shoe department. At July 31, 2002 the Company operated this department in approximately two hundred seventy-three Burlington Coat Factory stores. The shoe department offers a full line of mens, womens and childrens shoes in many brands and styles. During the second quarter of fiscal 2002, the Company opened its first stand-alone specialty shoe store in East Meadow, New York, offering designer and fashion shoes. The Company expanded this concept to an additional eight stand-alone shoe stores in the fourth quarter of fiscal 2002. The Company currently plans to open an additional nine stand-alone designer and specialty shoe stores in fiscal 2003.*

Page 7 of 61

     During fiscal 2000, the Company entered into an agreement with Christopher Lowell, the Emmy Award winning host of a home decorating and design show aired on cable television, for the creation of an exclusive line of home furnishings and accessories. The Christopher Lowell Collection is presented as a concept shop within the Company's existing linens and gift area. The shop features Christopher Lowell's line of home furnishings including bedding, window treatments, bath accessories, picture frames and a paint line. As of the end of fiscal 2002, the Christopher Lowell Collection was offered in two hundred eighty-nine of the Company's stores. During fiscal 2003, the Company intends to expand the offerings of the Christopher Lowell Collection to include tableware, dinnerware and drinkware.*

     The Company offers merchandise for sale through its internet subsidiary, Burlington Coat Factory Direct Corporation, on the worldwide web. During the Spring of 2000, the Company relaunched its on-line shopping web site (www.bcfdirect.com) using Commerce Intelligence Software licensed by InterWorld Corporation. The site features over 7,000 items, shopping cart functionality, item search capability and a secure on-line payment processing system. An order management system allows for vendor direct, warehouse and store-based fulfillment of orders. Web site product data is tied to the Company's inventory systems for maintenance of prices and item availability. The Company plans to expand the merchandise mix offered through its web site, to upgrade its internet marketing and promotional capabilities and to further develop and automate its fulfillment and customer service systems, however, no assurance can be given that this venture will be successful.*

     The Company seeks to maintain its competitive position and improve its prospects by periodically reevaluating its methods of operation, including its pricing and inventory policies, the format of its stores and its ownership or leasing of stores.

     The Company's business is seasonal, with its highest sales occurring in the months of September, October, November, December and January of each year. For the past five fiscal years, approximately 53% of the Company's net sales have occurred during the period from September through January. Weather, however,

Page 8 of 61

     Each store has a manager and one or more assistant managers, as well as department managers. The Company also employs regional and district managers to supervise overall store operating and merchandising policies. Major merchandising decisions are made, overall policies are set, and accounting and general financial functions for the Company's stores are conducted, at corporate headquarters. In addition, other operations such as real estate, store operations, loss prevention, merchandise presentation, customer service, and human resources, are managed on a Company-wide basis.

     At July 31, 2002, the Company had approximately 26,000 employees, including a large number of part-time and seasonal employees which varies throughout the year. Of the Company's employees, only those employed at one of its stores are covered by a collective bargaining agreement. The Company cannot predict whether any future attempts to unionize its employees will be successful. The Company believes that its relationship with its employees has been and remains satisfactory.

     General. The retail business is highly competitive. Competitors include other department stores as well as individual, regional, and national "off-price" retailers and discount store chains. At various times throughout the year, traditional full-price department store chains and specialty shops offer brand name merchandise at substantial markdowns, which can result in prices approximating those offered by the Company at its Burlington Coat Factory department stores. Some of the Company's competitors

Page 9 of 61

are considerably larger than the Company and have substantially greater financial and other resources.

     Resale Price Maintenance. Since it is the general policy of the Company to sell at lower than the traditional full retail price, its business may be adversely affected by manufacturers who attempt to maintain the resale price of their merchandise by refusing to sell or grant advertising allowances to purchasers who do not adhere to their suggested retail prices. Federal legislation and regulations have been proposed from time to time which, if enacted, would be helpful to manufacturers attempting to establish minimum prices or withhold allowances. In addition, the rules against resale price maintenance have been subject to challenge in the courts from time to time.

     The Company has, on several occasions in the past, brought lawsuits against certain manufacturers and department store chains and complained to the Federal Trade Commission seeking more vigorous enforcement of existing Federal laws, as well as testified before Congress in connection with proposed legislation concerning the Federal antitrust laws.

Item 2. Properties

     The Company owns the land and building for thirty-six of its stores. Generally, however, the Company's policy has been to lease its stores. Store leases generally provide for fixed monthly rental payments, plus the payment, in most cases, of real estate taxes and other charges with escalation clauses. In many locations, the Company's store leases contain formulas providing for the payment of additional rent based on sales.

Page 10 of 61

     The following table shows the years in which store leases existing at July 31, 2002 expire:

     The Company owns five buildings in Burlington, New Jersey. Of these buildings, two are used by the Company as retail space. In addition, the Company owns approximately 97 acres of land in the Townships of Burlington and Florence, New Jersey on which the Company has constructed its office and warehouse/distribution facility. The Company leases three warehouse facilities of approximately 41,000 square feet, 165,000 square feet and 300,000 square feet, respectively, at locations nearby to the warehouse/distribution facility. The Company leases approximately 20,000 square feet of office space in New York City. The Company is constructing a new facility of approximately 650,000 square feet in Edgewater Park, New Jersey. This new facility will expand the Company's warehousing and distribution. The new facility is expected to be operational by Spring of 2003.*

Item 3. Legal Proceedings

     In the past, the Company has initiated several lawsuits in its effort to stop what it believes to be unlawful practices on the part of certain manufacturers and large retailers to control the prices at which certain items of merchandise may be sold at the Company's stores.

Item 4. Submission of Matters to a Vote of Security Holders

     The Company did not submit any matter to a vote of its security holders during the fourth quarter of fiscal 2002.

Page 11 of 61

PART II

     The Company's Common Stock is traded on the New York Stock Exchange and its trading symbol is "BCF."

     The following table provides the high and low closing prices on the New York Stock Exchange for each fiscal quarter for the period from June 4, 2000 to June 1, 2002 and for the two months ended July 31, 2002.

     At July 31, 2002, there were 258 record holders of the Company's Common Stock. The number of record holders does not reflect the number of beneficial owners of the Company's Common

Page 12 of 61

Stock for whom shares are held by Cede & Co., certain brokerage firms and others.

     The Board of Directors of the Company declared an annual cash dividend of two cents ($.02) per share in each of the last three fiscal years. The cash dividend for fiscal 2002 was declared on August 23, 2001, and was paid on November 16, 2001, to stockholders of record on October 9, 2001. The paid dividend amounted to $0.9 million. Maintenance of the cash dividend policy or any change thereto in the future will be at the discretion of the Company's Board of Directors and will depend upon the financial condition, capital requirements and earnings of the Company as well as other factors which the Board of Directors may deem relevant. At present, the policy of the Board of Directors of the Company is to retain the majority of earnings to finance the growth and development of the Company's business.

Item 6. Selected Financial Data

     The following tables set forth certain selected financial data:

Page 13 of 61

     The Company maintains its records on the basis of a 52-53 week fiscal year ending on the Saturday closest to May 31. The following discussion compares the twelve months (52 weeks) ended June 1, 2002 with the twelve months (52 weeks) ended June 2, 2001 and the twelve months (52 weeks) ended June 2, 2001 with the twelve months (53 weeks) ended June 3, 2000.

Page 14 of 61

     The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments, including those related to sales returns, bad debts, inventories, income taxes, financing operations, asset impairment, retirement benefits, risk participation agreements, reserves for closed stores and contingencies and litigation. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

     The Company believes that the following represent its more critical estimates and assumptions used in the preparation of the consolidated financial statements, although the list is not exhaustive:

     The Company's inventory is valued at the lower of cost or market using the retail first-in, first-out ("FIFO") inventory method. Under the retail inventory method, the valuation of inventory at cost and resulting gross margin are calculated by applying a calculated cost to retail ratio to the retail value of inventory. The retail inventory method is an averaging method that has been widely used in the retail industry due to its practicality. Additionally, it is recognized that the use of the retail inventory method will result in valuing inventory at the lower of cost or market if markdowns are currently taken as a reduction of the retail value of inventory. Inherent in the retail inventory method calculation are certain significant management judgments and estimates including, merchandise markon, markups, markdowns and shrinkage which significantly impact the ending inventory valuation at cost as well as the resulting gross margin. Management believes that the Company's retail inventory method and application of FIFO provides an inventory valuation which approximates cost using a first-in, first-out assumption and results in carrying value at the lower of cost or market. Estimates are used to charge inventory shrinkage for the first three fiscal quarters of the fiscal year. An actual physical inventory is conducted at the end of the fiscal year to calculate actual shrinkage. The Company also estimates its required markdown reserves. If actual market conditions are less favorable than those projected by management, additional markdowns may be required. While the Company makes estimates on the basis of the best information available to it at the time estimates are made, over accruals or under accruals may be uncovered as a result of the physical inventory requiring fourth quarter adjustments.

     The Company has risk participation agreements with insurance carriers with respect to workers' compensation and liability insurance. Pursuant to these arrangements, the Company is responsible for paying claims up to designated dollar limits. The amounts included in the Company's costs related to these claims are estimated and can vary based on changes in assumptions or claims experience included in the associated insurance programs.

Page 15 of 61

     The Company records reserves for future sales returns. The reserves are based on current sales of products and historical claim experience. If claims experience differs from historical levels, revisions in the Company's estimates may be required.

     The Company records an asset impairment charge when it believes a long-lived asset has experienced a decline in value that is other than temporary. The Company performs an analysis of anticipated undiscounted future net cash flows of long-lived assets. If the carrying value of the related assets exceeds the undiscounted cash flow, the Company reduces the carrying value to its fair value, which is generally calculated using discounted cash flows. Various factors including future sales growth and profit margins are included in this analysis. To the extent these future projections change, the conclusion regarding impairment may differ from the estimates. Future adverse changes in market conditions or poor operating results of underlying assets could result in losses or an inability to recover the carrying value of the assets that may not be reflected in an asset's current carrying value, thereby possibly requiring an impairment charge in the future.

     The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. If the financial condition of the Company's customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.

     The following table sets forth certain items in the consolidated statements of operations as a percentage of net sales for the twelve months ended June 1, 2002 and June 2, 2001.

Page 16 of 61

     Consolidated net sales increased $176.9 million (7.4%) for fiscal 2002 compared with the similar period of a year ago. Comparative stores sales decreased 0.3% for the period. Twenty new and seven relocated Burlington Coat Factory department stores, opened during fiscal 2002, contributed $171.8 million to this year's net sales. Stores opened a year ago contributed $77.0 million to this year's net sales from the beginning of fiscal 2002 to the anniversary of their opening date. Nine stores, which were in operation a year ago, but which were closed prior to this year, contributed $30.4 million to last year's sales.

     The Cohoes stores contributed $39.0 million to consolidated sales for the twelve months ended June 1, 2002 compared with $37.5 million for the twelve months ended June 2, 2001. Cohoes comparative store sales increased 4.3% for the twelve month period.

     Sales in fiscal 2002 for the Decelle stores were $29.0 million compared with $32.4 million for the twelve months ended June 2, 2001. Decelle comparative store sales decreased 3.1% for the twelve months ended June 1, 2002 compared with the similar twelve month period of a year ago. One store, closed prior to the beginning of fiscal 2002, contributed $2.5 million to last year's sales.

     During this year's second fiscal quarter, the Company opened a stand-alone shoe store in East Meadow, New York. An additional eight stand-alone shoe stores were opened during the fourth quarter of fiscal 2002. These new stand-alone shoe stores contributed $7.9 million to this year's sales.

     As a result of the terrorist attack on the World Trade Center on September 11, 2001, one of the Company's stores, located in close proximity to the disaster, was damaged. The Company believes that the book value of all assets lost is recoverable through insurance. The store has been closed since September 11, 2001, and no reopening date has been determined.

     Other income (consisting of rental income from leased departments, investment income and miscellaneous items) decreased to $27.4 million for fiscal 2002 compared with $28.6 million for the similar period of a year ago. This decrease is primarily the result of a decrease in investment income, resulting from a decrease in investment rates during the comparative periods, of approximately $4.5 million. These decreases were offset in part by an increase in rental income of $1.3 million and by the gain realized on the disposition of Company assets during the fiscal year.

Page 17 of 61

     Cost of sales increased $96.4 million (6.4)% for the twelve months ended June 1, 2002 compared with the twelve months ended June 2, 2001. The dollar increase in cost of sales was due to the increase in net sales during the current fiscal year compared with the prior year. Cost of sales as a percentage of net sales decreased from 63.2% in fiscal 2001 to 62.6% in fiscal 2002. This improvement was primarily the result of lower inventory shrinkage during fiscal 2002 compared with fiscal 2001 and lower markdowns taken as a percentage of sales during fiscal 2002 compared with fiscal 2001.

     Selling and administrative expenses increased $76.5 million (10.3%) from the 2001 period to the 2002 period. As a percentage of net sales, selling and administrative expenses were 31.9% for the twelve months ended June 1, 2002 compared with 31.1% for the twelve months ended June 2, 2001. This increase was due mainly to an increase in the number of stores in operation and increases in payroll and payroll related expenses. During fiscal 2001, the Company established a $2.4 million reserve for the costs associated with the relocation of several stores. During fiscal 2002, the Company paid $1.0 million of these costs. In addition, $1.0 million of the reserve was relieved due to an early termination of the lease by the landlord.

     Depreciation and amortization expense amounted to $59.6 million in the twelve months ended June 1, 2002 compared with $49.3 million in the twelve months ended June 2, 2001. This increase of $10.3 million in the fiscal 2002 period compared with the comparative 2001 period is attributable primarily to capital additions relating to new store purchases, improvements, expansions and remodelings over the past two fiscal years.

     Interest expense decreased $0.6 million for the twelve months ended June 1, 2002 compared with the similar period of a year ago. The decrease in interest expense is the result of a decrease in long term debt due to the recurring repayments of the Company's industrial development bonds and the prepayment of the entire remaining balance of the Company's subordinated notes in June 2000. In addition, interest relating to the Company's borrowings under its lines of credit amounted to $0.3 million during fiscal 2002 compared with $0.8 million during fiscal 2001. Interest expense related to capital lease obligations amounted to $0.2 million during fiscal 2002. There were no capital lease obligations during fiscal 2001.

     The provision for income taxes decreased to $40.7 million for the twelve months ended June 1, 2002 from $42.6 million for the similar fiscal period a year ago. This decrease in the tax provision was due to lower earnings. The effective tax rate for fiscal 2002 was 37.8% compared with 37.2% in the prior fiscal year. This rate increase is due primarily to decreases in tax-exempt interest earned by the Company during fiscal 2002 compared with fiscal year 2001 and to an increase in the effective state income tax rate for fiscal 2002 compared with fiscal 2001.

     Income before extraordinary loss from early extinguishment of debt decreased $4.9 million to $66.9 million for the fiscal 2002 period from $71.8 million for the comparative 2001 period. Net income per share before extraordinary loss from early extinguishment of debt was $1.51 per share for fiscal 2002 compared with $1.62 per share for the comparative 2001 period.

Page 18 of 61

     The following table sets forth certain items in the consolidated statements of operations as a percentage of net sales for the twelve months ended June 2, 2001 and June 3, 2000.

Page 19 of 61

Stores opened during fiscal 2000 contributed $81.5 million to net sales from the beginning of fiscal 2001 to the anniversary of their opening date. Four stores, which were in operation during fiscal 2000, but which were closed prior to the beginning of fiscal 2001, contributed $9.9 million to sales. Stores closed during fiscal 2001 contributed $26.0 million to fiscal 2000 sales during their non-comparative periods. The non-comparative week of fiscal 2000 (i.e., the week of May 30, 1999 to June 5, 1999) contributed $29.2 million to fiscal 2000 net sales for Burlington Coat Factory stores.

     The Cohoes stores contributed $37.5 million to consolidated sales for the twelve months ended June 2, 2001 compared with $39.9 million for the twelve months ended June 3, 2000. Cohoes comparative store sales decreased 8.4% for the twelve month period. One Cohoes store opened during fiscal 2000 contributed $1.9 million to fiscal 2001 sales during its non-comparative period. The non-comparative week of fiscal 2000 contributed $.7 million to fiscal 2000 net sales.

     Sales in fiscal 2001 for the Decelle stores were $32.4 million compared with $33.8 million for the twelve months ended June 3, 2000. Decelle comparative store sales increased .3% for the twelve months ended June 2, 2001 compared with the similar prior twelve month period. One Decelle store was closed during fiscal 2001. That store contributed $.8 million to sales during its non-comparative period of fiscal 2000. The non-comparative week of fiscal 2000 contributed $.7 million to fiscal 2000 sales.

     Other income (consisting of rental income from leased departments, investment income and miscellaneous items) increased to $28.6 million for fiscal 2001 compared with $27.5 million for the similar period during fiscal 2000. This increase is primarily the result of an increase in rental income from leased departments of approximately $.6 million and to increases in other miscellaneous operating revenues of $1.7 million. These increases were offset in part by a decrease in interest income of $1.3 million due to lower levels of investable funds in fiscal 2001 compared with the prior year.

     Cost of sales increased $111.3 million (7.9)% for the twelve months ended June 2, 2001 compared with the twelve months ended June 3, 2000. The dollar increase in cost of sales was due to the increase in net sales during fiscal 2001 compared with the prior year. Cost of sales as a percentage of net sales decreased from 64.0% in fiscal 2000 to 63.2% in fiscal 2001. Improvements in initial margins and markdowns taken as a percentage of net sales were offset in part by slightly higher inventory shrinkage during fiscal 2001 compared with fiscal 2000.

     Selling and administrative expenses increased $72.5 million (10.8%) from the 2000 period to the 2001 period. As a percentage of net sales, selling and administrative expenses were 31.1% for the twelve months ended June 2, 2001 compared with 30.6% for the twelve months ended June 3, 2000. This increase was due mainly to an increase in the number of stores in operation and increases in payroll and payroll related expenses. In addition, during the fourth quarter of fiscal 2001, the Company decided to relocate several stores during fiscal 2002. As a result, the Company established a reserve of $2.4 million during the fourth quarter of fiscal 2001 for lease commitments and other expenses expected to be incurred subsequent to the closing of these relocated stores. Fixed assets from these stores were either used in the new locations or were depreciated over the period the store remained in operation. Additional payroll related costs were not incurred with these relocations beyond the closing date.

Page 20 of 61

     Depreciation and amortization expense amounted to $49.3 million in the twelve months ended June 2, 2001 compared with $41.0 million in the twelve months ended June 3, 2000. This increase of $8.3 million in the fiscal 2001 period compared with the comparative 2000 period is attributable primarily to new stores opened during the year as well as remodeling and refixturing of existing stores.

     Interest expense decreased $3.8 million for the twelve months ended June 2, 2001 compared with the prior year. The decrease in interest expense was the result of a decrease in long term debt due to the recurring repayments of the Company's industrial development bonds and the prepayment of the entire remaining balance of the Company' subordinated notes in June 2000. Interest amounting to $.8 million relating to the company's borrowings under its lines of credit, offset, in part, the interest expense decrease realized by the reduction in long term debt.

     The provision for income taxes increased to $42.6 million for the twelve months ended June 2, 2001 from $37.7 million for the prior year. This increase in the tax provision was due to higher earnings. The effective tax rate for fiscal 2001 was 37.2% compared with 37.6% in the prior fiscal year. This rate decrease was due primarily to increases in tax credits available to the Company and to increases in tax-exempt interest earned by the Company during fiscal 2001 compared with fiscal year 2000.

     Income before extraordinary loss from early extinguishment of debt and cumulative effect of accounting change increased $9.3 million to $71.8 million for the fiscal 2001 period from $62.5 million for the comparative 2000 period. Net income per share before extraordinary loss from early extinguishment of debt and cumulative effect of accounting change was $1.62 per share for fiscal 2001 compared with $1.37 per share for the comparative 2000 period.

     During the first quarter of fiscal 2001, the Company prepaid the remaining balance of its long term subordinated notes. The prepayment penalty associated with this payment amounted to approximately $1.0 million. This penalty, along with the write-off of unamortized deferred debt charges of approximately $0.3 million, resulted in an extraordinary loss, net of taxes, of $0.8 million or $0.02 per share for fiscal 2001.

During fiscal 2002, the Company opened twenty Burlington Coat Factory Warehouse department stores and nine stand-alone shoe stores. The Company closed five stores and relocated seven others to new locations within their trading

Page 21 of 61

areas. Expenditures incurred to acquire, set up and fixture new stores opened during fiscal 2002 were approximately $75.4 million. Expenditures for store relocations, store expansions and store refurbishings were approximately $44.9 million during fiscal 2002. During fiscal 2002, the Company acquired the leases of eight stores for $24.8 million. In addition, expenditures during fiscal 2002 for store locations to be opened during fiscal 2003 amounted to $24.4 million. Expenditures incurred in the construction of the Company's new distribution center in Edgewater Park, New Jersey amounted to $10.7 million. Other capital expenditures, consisting primarily of computer system enhancements and distribution center improvements amounted to $12.3 million for fiscal 2002. For fiscal 2003, the Company estimates that it will spend approximately $142.0 million for capital expenditures (i.e., building acquisitions, fixtures, equipment and leasehold improvements) in connection with the opening of approximately twenty-five to thirty-five new stores (including store relocations), remodeling and expansion of existing stores, expansion of the Company's home office and warehouse facilities, and computer enhancement projects.*

     Recently several retail chain stores have filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code and subsequently have made many of their retail locations available for auction. The Company monitors such activity for desirable locations for its stores. In fiscal 2002, the Company acquired sixteen former Montgomery Ward locations. In fiscal 2003, the Company is seeking to acquire an additional twelve former Kmart locations, the costs for which are reflected in the above noted capital budgets. Should additional locations become available from these or other retailers, the Company may seek to acquire a number of such locations in one or more transactions. If the Company undertakes such transactions, the Company may seek additional financing to fund acquisition and carry charges (i.e., the cost of rental, maintenance, tax and other obligations associated with such properties from the time of commitment to acquire to the time that such locations can be readied for opening as Company stores) related to these stores.* There can be no assurances, however, that any additional locations will become available from other retailers or that, if available, the Company will undertake to bid or be successful in bidding for such locations.*

     Working capital decreased to $236.3 million at June 1, 2002 from $296.7 million at June 2, 2001. At June 3, 2000, working capital was $260.4 million.

     Net cash provided by operating activities of $233.4 million for fiscal 2002 increased by $151.8 million from $81.6 million in net cash provided by operating activities for fiscal 2001. This increase in net cash from operations was due primarily to an increase the Company's accounts payable position as of June 1, 2002 compared with June 2, 2001.

     On August 23, 2001, the Board of Directors of the Company declared a cash dividend in the amount of two cents ($0.02) per share. The cash dividend was paid on November 16, 2001, to

Page 22 of 61

stockholders of record on October 19, 2001. The paid dividend amounted to $0.9 million.

     The Company's long-term borrowings at June 1, 2002 consists of an industrial development refunding bond of $7.6 million issued by the New Jersey Economic Development Authority (the "Refunding Bonds"), a $2.0 million loan from the Burlington County Board of Chosen Freeholders and a capital lease obligation of $16.3 million.

     The Refunding Bonds consist of serial and term bonds. The serial bonds aggregate $1.2 million and mature in series annually on September 1, through the year 2003. The term bonds consist of two portions, $1.4 million maturing on September 1, 2005 and $5.0 million maturing on September 1, 2010. The serial bonds bear interest ranging from 5.2% to 5.4% per annum, and the term bonds bear interest at the rates of 5.6% for the portion maturing on September 1, 2005 and 6.125% per annum for the portion maturing on September 1, 2010. The average interest rate and average scheduled maturity of the Refunding Bonds are 5.9% and 4.9 years, respectively. During fiscal 2002, the Company expended approximately $.5 million for the repayment of the Refunding Bonds.

     On December 5, 2001, the Company borrowed $2.0 million from the Burlington County Board of Chosen Freeholders. The proceeds were used for part of the acquisition and development costs of a new warehouse facility in Edgewater Park, New Jersey. The loan is interest-free and matures on January 1, 2012. The loan is to be repaid in monthly installments of $16,667 which began on February 1, 2002.

     The Company has a capital lease obligation relating to one of its stores. The lease term for this location extends over twenty-five years. The capital lease obligation equals the present value of the minimum lease payments under the lease and amounted to $13.7 million. During fiscal 2002, $0.1 million of lease payments were applied against the capital lease obligation and $0.2 million were applied to interest expense.

     As of June 1, 2002 and June 2, 2001, the Company had $100.0 million in committed lines of credit and an additional $25.0 million in uncommitted lines of credit. The Company had letter of credit commitments outstanding against the committed line of credit of $26.2 million at the end of fiscal 2002 and $17.5 million at the end of fiscal 2001. At June 1, 2002, the Company had no borrowing under these lines of credit. Maximum borrowing amounted to $54.8 million during the first quarter of fiscal 2002 and $50.2 million during the second quarter of fiscal 2002. For the comparative periods of a year ago, the maximum borrowings were $70.1 million and $67.5 million, respectively. The average borrowing under these credit lines during the first quarter of fiscal 2002 was $38.1 million, at an average interest rate of 4.2%. During the second quarter of fiscal 2002, the average borrowing under the lines of credit was $22.5 million at an average interest rate of 3.5%. Average borrowing during last year's first quarter was $36.3 million at an average interest rate of 7.0%. During the second quarter of last year, average borrowing was $27.5 million at an average interest rate of 7.0%. During the third and fourth quarters of fiscal 2002 and 2001, there were no borrowings under these lines of credit. Borrowing under the Company's lines of credit were necessary during the current year's first six months primarily because of the purchase of inventory during the period and capital expenditure requirements.

Page 23 of 61

     The Company believes that its current capital expenditures and operating requirements can be satisfied from internally generated funds, from short term borrowings under its revolving credit and term loan agreement as well as uncommitted lines of credit.* Furthermore, to the extent that the Company decides to purchase additional store locations, or to undertake unusual transactions such as an acquisition, it may be necessary to finance such transactions with additional long term borrowings.*

     Historically, the Company has been able to increase its selling prices as the costs of merchandising and related operating expenses have increased, and therefore, inflation has not had a significant effect on operations.*

     The Company does not utilize financial instruments for trading purposes and holds no derivative financial instruments which could expose the Company to significant market risk. The Company's primary market risk exposure with regard to financial instruments is to changes in interest rates. Pursuant to the terms of certain revolving credit arrangements, changes in the lenders' prime rate, LIBOR or other stated interest rates could affect the rates at which the Company could borrow funds thereunder. At June 1, 2002, the Company had no outstanding borrowings against the credit facilities. The table below summarizes the fair value and contract terms of the Company's fixed rate debt and capital lease obligations at June 1, 2002:

Page 24 of 61

     Scheduled Maturity Date of Long-Term Debt and Capital Lease Obligations (Including Current Portion) at June 1, 2002 (in thousands):

Item 8. Financial Statements and Supplementary Data

     None.

PART III

Item 11. Executive Compensation

Item 13. Certain Relationships and Related Transactions

     In accordance with General Instruction G(3) of the General Instructions to Form 10-K, the information called for by Items 10, 11, 12 and 13 is omitted from this Report and is incorporated by reference to the definitive Proxy Statement to be filed by the Company pursuant to Regulation l4A of the General Rules and Regulations under the Securities Exchange Act of 1934, which the Company will file not later than 120 days after June 1, 2002.

Page 25 of 61

PART IV

Page 26 of 61

____________________

____________________

     During the quarter ended June 1, 2002 the Company did not file any report on Form 8-K.

Page 28 of 61

SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BURLINGTON COAT FACTORY WAREHOUSE CORPORATION
(Registrant)

     Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Page 29 of 61

[THIS PAGE INTENTIONALLY LEFT BLANK]

Page 31 of 61

Board of Directors and Stockholders
Burlington Coat Factory Warehouse Corporation
Burlington, New Jersey

     We have audited the accompanying consolidated balance sheets of Burlington Coat Factory Warehouse Corporation and subsidiaries (the "Company") as of June 1, 2002 and June 2, 2001, and the related consolidated statements of operations, stockholders' equity, and cash flows for each of the three years in the period ended June 1, 2002. Our audits also included the financial statement schedule listed in the Index at Item 14(a)(2). These financial statements and the financial statement schedule are the responsibility of the Company's management. Our responsibility is to express an opinion on the financial statements and the financial statement schedule based on our audits.

     We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion.

     In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Burlington Coat Factory Warehouse Corporation and subsidiaries as of June 1, 2002 and June 2, 2001, and the results of their operations and their cash flows for each of the three years in the period ended June 1, 2002, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, such financial statement schedule, when considered in relation to the consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

DELOITTE & TOUCHE LLP

Philadelphia, Pennsylvania
August 12, 2002

Page 32 of 61

BURLINGTON COAT FACTORY WAREHOUSE CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share data)

Page 33 of 61

BURLINGTON COAT FACTORY WAREHOUSE CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except share data)

Page 34 of 61

BURLINGTON COAT FACTORY WAREHOUSE CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
TWELVE MONTHS ENDED JUNE 3, 2000, JUNE 2, 2001 and June 1, 2002
(All amounts in thousands)

Page 35 of 61

BURLINGTON COAT FACTORY WAREHOUSE CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in thousands)

Page 36 of 61

Notes to Consolidated Financial Statements

     Property and equipment consists of (in thousands):

June 1, 2002

June 2, 2001

     Long term investments consist of the following as of June 2, 2001 (in thousands):

During fiscal 2001, held-to-maturity investments were pledged as collateral under certain insurance contracts which previously had been collateralized through the use of letter of credit agreements. During fiscal 2002, $6.2 million of the Company's held-to-maturity investments were called by the issuing authority. Proceeds from the sale of these investments were used to purchase money market investments which are classified as restricted cash and cash equivalents on the Company's balance sheet at June 1, 2002. The $6.2 million of money market investments are pledged as collateral for certain insurance contracts.

Page 44 of 61

     Accounts payable consists of:

     Total lines of credit from all banks as of June 1, 2002 and June 2, 2001 amounted to $100 million in committed credit and $25 million in uncommitted credit.

     The Company's committed line of credit is a three year commitment which renews for an additional year every year. It is currently available through December 2005. The uncommitted lines of credit are cancelable by the bank at any time. Letters of credit outstanding against these lines were $26.2 million and $17.5 million at June 1, 2002 and June 2, 2001, respectively.

     At June 1, 2002, the Company had no borrowing under these lines of credit. Maximum borrowing amounted to $54.8 million during the first quarter of fiscal 2002 and $50.2 million during the second quarter of fiscal 2002. For the comparative periods of a year ago, the maximum borrowing was $70.1 million and $67.5 million, respectively. The average borrowing under these credit lines during the first quarter of fiscal 2002 was $38.1 million, at an average interest rate of 4.2%. During the second quarter of fiscal 2002, the average borrowing under the lines of credit was $22.5 million at an average interest rate of 3.5%. Average borrowing during last year's first quarter was $36.3 million at an average interest rate of 7.0%. During the second quarter of last year, average borrowing was $27.5 million at an average interest rate of 7.0%. During the third and fourth quarters of fiscal 2002 and 2001, there were no borrowings under these lines of credit. Borrowing under the Company's lines of credit were necessary during the current year's first six months primarily because of the purchase of inventory during the period and capital expenditure requirements.

Page 45 of 61

     Short-term borrowings against these lines of credit bear interest at or below the lending bank's prime rate (4.75% at June 1, 2002).

     Long-term debt consists of: