Burlington Stores (NYSE:BURL) Soars on Robust Outlook
Market News

Burlington Stores (NYSE:BURL) Soars on Robust Outlook

Story Highlights

Burlington Stores shares are flying higher today after investors were impressed with the company’s third-quarter performance and full-year outlook.

Shares of off-price retailer Burlington Stores (NYSE:BURL) skyrocketed nearly 19% at the time of writing after investors were impressed with the company’s third-quarter comparable-store sales and full-year financial outlook.

During the quarter, revenue increased by 12% year-over-year to $2.29 billion. EPS of $0.98 managed to beat expectations by $0.01. Healthy trends in August and September helped the company grow comparable store sales by 6%. In addition, CEO Michael O’Sullivan noted that “November is off to a solid start.”

Moreover, the company’s gross margin improved by 200 basis points to 43.2%. Burlington ended the quarter with $1,440 million in liquidity and a total outstanding debt of $1,412 million. The company repurchased $52 million worth of shares in Q3 and has $718 million remaining under its stock buyback authorization.

For Fiscal Year 2023, Burlington expects revenue to rise by 11% and comparable store sales to increase by 3%. EPS for the year is anticipated to land between $5.52 and $5.67, with 80 net new store openings planned.

For the upcoming quarter, Burlington expects sales to rise in the range of 5% to 7%. Comparable store sales growth is anticipated to be between 0% and -2%. EPS for the quarter is seen landing between $3.04 and $3.19.

Is BURL a Good Buy?

Despite today’s price gains, Burlington shares still remain nearly 34% lower so far this year. Overall, the Street has a Moderate Buy consensus rating on Burlington Stores and the average BURL price target of $181.79 implies a 13.46% potential upside.

Read full Disclosure

Related Articles
TheFlyTelsey names its Holiday 2024 Top Picks
TheFlyBurlington Stores put volume heavy and directionally bearish
TheFlyBurlington Stores management to meet with Loop Capital
Go Ad-Free with Our App