Burlington Stores Reports Strong Q2 Results

Burlington Stores (NYSE:BURL) shares rose on Thursday after better-than-expected fiscal second quarter results and positive guidance.

Q2 Financials

• Earnings per Share (EPS): $1.20, surpassing analyst estimates of $0.95.
• Revenue: $2.46 billion, exceeding the consensus projection of $2.41 billion.
• Gross Margin: Increased to 42.8% from 41.7% year-over-year, ahead of the expected 42.5%.

CEO Commentary

Michael O’Sullivan, CEO of Burlington Stores, stated, “We are pleased with our results from the second quarter. Comparable store sales increased by 5%, and total sales rose by 13%. Both metrics surpassed our expectations.”

BURL stock saw a rise of approximately 3% in the premarket on Thursday.

O’Sullivan noted, “Strong margin improvement and earnings growth during the second quarter were driven by ahead-of-plan sales, significant gross margin increases, and improved supply chain efficiency.”

Fiscal 2024 Guidance

• EPS Expectation: Between $7.66 and $7.96, compared to the consensus of $7.69.
• Total Sales Growth: Projected at 9% to 10%, following a 10% increase for the 52 weeks ending January 27, 2024.
• Comparable Store Sales Growth: Expected to rise by 2% to 3%, building on last year’s 4% increase.
• Store Openings: Approximately 100 net new stores planned.
• Adjusted EBIT Margin: Expected improvement of 50 to 70 basis points compared to the prior period.

Q3 2024 Forecast

• EPS: Projected between $1.45 and $1.55, exceeding the consensus of $1.36.
• Total Sales Growth: Expected at 10% to 12%, with comparable store sales growth of 0% to 2% compared to Q3 2023, while analysts expected 2.27% growth.
• Adjusted EBIT Margin: Anticipated increase of 60 to 80 basis points compared to the same quarter last year.