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Burlington Stores (BURL)
NYSE:BURL
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Burlington Stores
(NYSE:BURL)
70Outperform
Positive Factors
Product Strategy
BURL plans to elevate its product strategy by focusing on better brands and more visible value at all price points.
Sales and Margin Recovery
BURL is positioned for continued share gains and has outsized sales and margin recovery opportunities.
Negative Factors
Tariffs Impact
An emerging concern for the sector is tariffs on goods imported, which can impact Burlington.
Weather Challenges
Burlington's growth was challenged by weather impacts in November and January, creating a headwind to the period.
Burlington Stores (BURL) vs. S&P 500 (SPY)
Market Cap
$14.89B
Dividend YieldN/A
Average Volume (3M)1.48M
Price to Earnings (P/E)29.7
Beta (1Y)1.02
Revenue Growth9.33%
EPS Growth50.05%
CountryUS
Employees17,057
SectorConsumer Cyclical
Sector Strength46
IndustryApparel - Retail
Share Statistics
EPS (TTM)7.79
Shares Outstanding63,204,620
10 Day Avg. Volume1,087,651
30 Day Avg. Volume1,479,011
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)N/A
Price to Sales (P/S)1.39
Price to Cash Flow (P/CF)6.80
P/FCF Ratio6.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$335.00Price Target Upside44.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
Burlington Stores Business Overview & Revenue Model
Company DescriptionBurlington Stores, Inc. operates as a retailer of branded apparel products in the United States. The company provides fashion-focused merchandise, including women's ready-to-wear apparel, menswear, youth apparel, footwear, accessories, toys, gifts, and coats, as well as baby, home, and beauty products. As of January 29, 2022, it operated 837 stores under the Burlington Stores name, 2 stores under the Cohoes Fashions name, and 1 store under the MJM Designer Shoes name in 45 states and Puerto Rico. Burlington Stores, Inc. was founded in 1972 and is headquartered in Burlington, New Jersey.
How the Company Makes MoneyBurlington Stores generates revenue primarily through the sale of goods in its retail stores. The company's off-price retail model allows it to make money by purchasing excess inventory from manufacturers and other retailers at reduced prices and then selling these products to consumers at a discount. Key revenue streams include sales of clothing, home goods, and accessories. Burlington's ability to quickly turn over inventory and offer fresh merchandise regularly attracts customers looking for bargains on brand-name products. Partnerships with manufacturers and suppliers are significant to its business model, as these relationships allow Burlington to access high-quality goods at lower costs. Additionally, the company's focus on operating efficiently with low overhead costs helps to maximize profit margins.
Burlington Stores Financial Statement Overview
Summary
Burlington Stores shows strong revenue growth and profitability with a healthy net profit margin. However, high leverage poses potential risks, requiring careful management of debt and efficiency improvements.Income Statement
Burlington Stores shows strong growth with a revenue increase from $8.70 billion in 2023 to $10.63 billion in 2025. Gross profit and EBIT margins are healthy at 43.3% and 6.3% in 2025, respectively. The net profit margin improved to 4.7% in 2025, indicating enhanced profitability. However, the EBITDA margin is slightly lower at 10.3% compared to previous years, suggesting room for efficiency improvements.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio is high at 3.92 in 2025, signaling significant leverage. The equity ratio of 15.6% indicates a moderate level of equity financing relative to total assets. Return on equity improved to 36.7% in 2025, reflecting strong profitability relative to equity, but the high leverage poses potential risks in volatile market conditions.70
Positive
Cash Flow
Operating cash flow remains robust at $863 million in 2025, with a stable operating cash flow to net income ratio of 1.71. Free cash flow increased significantly from $351 million in 2024 to $863 million in 2025, suggesting improved cash generation capabilities. However, free cash flow to net income ratio stands at 1.71, indicating a need for careful cash management to sustain growth.78
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 10.63B | 9.72B | 8.70B | 9.32B | 5.76B | Gross Profit |
| 4.61B | 4.13B | 3.53B | 3.89B | 2.21B | EBIT |
| 674.81M | 548.03M | 410.04M | 776.57M | -333.64M | EBITDA |
| 1.09B | 851.24M | 636.38M | 837.12M | -119.47M | Net Income Common Stockholders |
| 503.64M | 339.65M | 230.12M | 408.84M | -216.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 994.70M | 925.36M | 872.62M | 1.09B | 1.38B | Total Assets |
| 8.77B | 7.71B | 7.27B | 7.09B | 6.78B | Total Debt |
| 5.37B | 4.80B | 4.70B | 4.45B | 4.64B | Net Debt |
| 4.38B | 3.88B | 3.83B | 3.36B | 3.26B | Total Liabilities |
| 7.40B | 6.71B | 6.47B | 6.33B | 6.32B | Stockholders Equity |
| 1.37B | 996.93M | 794.90M | 760.42M | 464.75M |
| Cash Flow | Free Cash Flow | |||
| 863.38M | 351.45M | 145.28M | 480.12M | -54.10M | Operating Cash Flow |
| 863.38M | 868.74M | 596.38M | 833.16M | 219.18M | Investing Cash Flow |
| -882.25M | -503.75M | -423.14M | -344.39M | -274.13M | Financing Cash Flow |
| 88.22M | -318.84M | -391.71M | -777.96M | 1.03B |
Burlington Stores Technical Analysis
Negative
231.50
Price Trends
249.81
Negative
266.90
Negative
261.41
Negative
Market Momentum
-2.16
Negative
49.66
Neutral
50.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BURL, the sentiment is Negative. The current price of 231.5 is below the 20-day moving average (MA) of 238.80, below the 50-day MA of 249.81, and below the 200-day MA of 261.41, indicating a bearish trend. The MACD of -2.16 indicates Negative momentum. The RSI at 49.66 is Neutral, neither overbought nor oversold. The STOCH value of 50.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BURL.
Burlington Stores Risk Analysis
Burlington Stores disclosed 36 risk factors in its most recent earnings report. Burlington Stores reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Burlington Stores Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $140.12B | 29.45 | 61.98% | 1.20% | 3.95% | ― | |
76 Outperform | $4.19B | 10.61 | 17.56% | ― | 7.71% | 40.01% | |
75 Outperform | $43.14B | 20.77 | 40.28% | 1.15% | 3.69% | 13.71% | |
73 Outperform | $6.69B | 8.12 | 28.81% | 3.36% | 1.32% | 65.83% | |
70 Outperform | $14.89B | 29.70 | 42.55% | ― | 9.33% | 50.05% | |
61 Neutral | $3.43B | 6.85 | 47.77% | ― | 15.60% | 71.45% | |
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% |
* Consumer Cyclical Sector Average
Performance Comparison
BURL
Burlington Stores
231.50
32.20
16.16%
ANF
Abercrombie Fitch
73.33
-46.09
-38.59%
GAP
Gap Inc
19.13
-3.74
-16.35%
ROST
Ross Stores
130.31
-8.49
-6.12%
TJX
TJX Companies
122.16
27.21
28.66%
URBN
Urban Outfitters
46.61
6.90
17.38%
Burlington Stores Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -2.30% | Next Earnings Date: May 22, 2025
Earnings Call Sentiment Positive
The earnings call indicates a strong performance in the fourth quarter and the fiscal year 2024, with significant sales growth and operating margin expansion. However, the outlook for 2025 is cautious due to external risks and a weak start to Q1, balanced by strategic investments in infrastructure.Highlights
Strong Q4 Performance
Burlington reported a 6% increase in comparable store sales for Q4, which was significantly above their guidance of 0% to 2%. This strong performance was attributed to an elevated assortment strategy and nimble response to sales trends.
Significant Sales Growth in 2024
For the full year 2024, Burlington achieved an 11% increase in total sales and a 4% increase in comp store sales, indicating strong overall growth.
Operating Margin Expansion
In 2024, Burlington expanded its operating margin by 100 basis points, driven by higher merchandise margins and supply chain efficiencies.
Successful Store Expansion
Burlington opened 101 net new stores in 2024, contributing to their long-term goal of expanding their store network.
Strong Liquidity Position
The company ended Q4 with approximately $1.8 billion in total liquidity, providing a solid financial position.
Lowlights
Uncertain 2025 Outlook
The outlook for 2025 remains uncertain due to economic, political, and geopolitical risks, leading to a conservative business approach.
Q1 2025 Weak Start
The first quarter of 2025 started weaker than expected due to unfavorable weather and delayed tax refunds, affecting sales trends.
Higher Capital Expenditures
Capital expenditures increased to $844 million in 2024, above previous guidance, due to strategic purchases of distribution centers.
Company Guidance
In the Burlington Stores, Inc. Fourth Quarter 2024 Earnings Webcast Call, the company provided guidance for fiscal 2025, projecting total sales growth between 6% and 8%, driven by 100 net new store openings and comparable store sales growth anticipated in the range of 0% to 2%. The expected operating margin expansion for 2025 is between 0 and 30 basis points. For the first quarter of 2025, Burlington anticipates total sales to rise by 5% to 7% with comparable store sales assumed to be flat. The guidance reflects a cautious approach due to the uncertain economic and geopolitical environment, with a focus on being nimble and flexible to adapt quickly to external changes. The company also highlighted its strategic investments in owning distribution centers, contributing to increased capital expenditures estimated at approximately $950 million for fiscal 2025.Burlington Stores Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Burlington Stores Appoints Shira Goodman to Board
Positive
Nov 26, 2024
Burlington Stores, Inc. has appointed Shira Goodman, a seasoned retail industry leader and former CEO of Staples, Inc., to its Board of Directors and Audit Committee starting January 1, 2025. This strategic move is expected to bring her extensive experience to the table, enhancing Burlington’s growth as they continue to implement the Burlington 2.0 strategy and drive sales and earnings. Goodman’s appointment highlights Burlington’s commitment to strengthening its leadership team as a nationally recognized off-price retailer.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.