Burlington Stores reports Q2 adjusted EPS $1.72, consensus $1.29

Reports Q2 revenue $2.70B, consensus $2.63B. CEO Michael O’Sullivan stated, “We are pleased with our exceptional performance in Q2. Comparable store sales increased 5%, which was on top of 5% comparable store sales growth in Q2 of last year. We also saw very strong margin and earnings performance. Adjusted EBIT Margin increased 120 basis points, while Adjusted EPS grew 39% versus the second quarter of last year. This was a high-quality earnings beat driven by ahead of plan sales, higher merchandise margin, lower freight expense and leverage on SG&A expenses. Given the strength of the second quarter, we are raising our full year earnings guidance. As for sales, consistent with our off-price playbook, we are maintaining our previously issued guidance for 0% to 2% comp growth in the third and fourth quarters. Q3 is off to a solid start, and as is our practice, we will manage our business conservatively and be ready to chase. We see a clear link between our very strong second quarter sales and earnings results and the key Burlington 2.0 strategies. We are excited because these initiatives are in the early stages of their potential impact, which we believe will grow over time and will drive our longer-term performance.”