Burlington Stores, recognized as a leading off-price retailer, experienced a significant uptick in its stock price on Thursday as it announced its fiscal fourth-quarter results, which surpassed analysts' expectations. The company reported adjusted earnings per share (EPS) climbing to $4.07 for the quarter ended February 1, improving from $3.66 in the same period last year.
This performance not only beat the consensus estimate of $3.77 from FactSet but also highlighted the retailer's resilience in a challenging economic landscape. Revenue for the quarter increased by 5% to reach $3.28 billion, again exceeding Wall Street's predictions of $3.24 billion. In a noteworthy development, Burlington saw its comparable sales rise by 6%, which contributed to improved gross margins and progress on supply chain initiatives, as noted by Chief Executive Michael O'Sullivan in a recent statement.
On the trading floor, Burlington's shares surged nearly 12% following the announcement, a testament to the market's positive reception of the retailer's strong performance. Despite these favorable results, the retail landscape remains fraught with uncertainty. O'Sullivan commented on the unpredictable outlook for 2025, emphasizing that the off-price retail model shines in such environments.
"The outlook for 2025 is very uncertain, and we will plan and manage our business accordingly. That said, this is the kind of environment where the off-price model is at its best," he stated. He further mentioned the necessity for caution and flexibility in managing the business to react appropriately to external factors affecting the market. O'Sullivan also referenced the myriad economic, political, and geopolitical risks that could potentially impact consumer behavior.
This caution comes in light of President Donald Trump's recent economic measures, including the exemption of automakers from tariffs on Mexico and Canada for a temporary period. Trump has introduced a 25% tariff targeted at these nations, which took effect on Tuesday, while the US has also doubled its tariffs on Chinese imports, leading to retaliatory actions from Canada and China. Looking ahead, Burlington Stores has projected an adjusted EPS between $8.70 and $9.30 for the fiscal year ending January 2026, an increase from the prior year's EPS of $8.35, although it falls short of analysts' anticipations, which are set at $9.43.
The company also forecasts steady revenue growth of between 6% and 8% for the same period. For the current quarter, Burlington anticipates an adjusted EPS ranging from $1.30 to $1.45, slightly lower than the $1.42 reported in the same quarter last year and below the consensus estimate of $1.71. Revenue growth for this quarter is expected to be between 5% and 7%. In a move to expand its market presence, Burlington has plans to inaugurate approximately 100 net new stores within the current fiscal year, following the successful addition of 101 stores in 2024.
This strategic growth underlines Burlington's commitment to enhancing its footprint in the off-price retail sector. Price: $266.15, Change: +29.20, Percent Change: +12.32.