Burlington surges after huge Q2 beat and raised outlook as shoppers keep bargain hunting
The off-price chain topped Wall Street’s expectations as deal hunters and brand deals fueled growth.
Burlington Stores shares soared on Thursday morning after the off-price retailer reported second-quarter results that easily beat Wall Street forecasts and raised its full-year guidance.
Adjusted earnings per share came in at $1.59, topping the Street’s estimate of $1.28. Revenue rose 10% to $2.7 billion, ahead of expectations for about $2.6 billion. Same-store sales growth of 5% lapped estimates for an increase of 1.4%.
Looking ahead: Burlington lifted its full-year sales growth outlook to 7% to 8%, up from a prior range of 6% to 8%, and raised adjusted EPS guidance to $9.19 to $9.59, from its previous forecast of $8.70 to $9.30. The midpoint of $9.39 comes in above Wall Street’s $9.24 projection.
On the earnings call, management said faster inventory turns led to fewer markdowns in the quarter, partly tied to new store openings. Executives also flagged tariffs and inflation (especially if it spreads to essentials like groceries) as key risks, adding that the company will have to be cautious about price hikes to stay focused on value.
“We anticipate that tariffs will put significant pressure on our merchandise margin,” the company said in a statement. “But we are confident that, as long as tariffs do not increase from current levels, we can offset this pressure elsewhere in the P&L.”
Burlington has been beefing up its branded assortment with labels like Nike, Calvin Klein, and Michael Kors, making its racks more competitive with rivals like TJX and Ross. Last week, TJX shares hit an all-time high after the off-price retailer delivered knockout Q2 results and a boost to full-year guidance.
Burlington shares are now positive on the year, up 7% year to date.
