Burlington Stores Stock In Spotlight After Q3 Earnings Beat: Retail Chatter Jumps To One-Year High

Total revenue rose 10.5% year-over-year (YoY) to $2.53 billion during the quarter, but fell short of a Wall Street estimate of $2.55 billion.

Shares of off-price department store retailer Burlington Stores Inc ($BURL) were in the spotlight after the firm reported upbeat third-quarter earnings.

Total revenue rose 10.5% year-over-year (YoY) to $2.53 billion during the quarter, but fell short of a Wall Street estimate of $2.55 billion. Adjusted earnings per share (EPS) came in at $1.55 compared to an estimate of $1.54. Net income rose 86% YoY to $90.6 million during the quarter.

CEO Michael O’Sullivan said although the third quarter comp trend started out very strongly, but then warmer temperatures from mid-September onwards slowed the sales momentum.

“Cold Weather categories represent about 15% of sales in the third quarter. Excluding these categories, our comp growth in the third quarter was 4%, which is consistent with the trend that we have seen in our business since March. We are very encouraged by this underlying comp sales trend,” O’Sullivan said.

For the full fiscal-year 2024, the company expects total sales to increase in the range of 9% to 10% on top of the 10% increase for the 52-weeks ended Jan. 27, 2024. Adjusted EPS is expected in the range of $7.76 to $7.96, which excludes $0.11, net of tax, of expenses associated with the acquired Bed Bath & Beyond leases.

Following the earnings announcement, retail sentiment on Stocktwits jumped into the ‘extremely bullish’ territory (77/100) from ‘extremely bearish’ a day ago, accompanied by extremely high retail chatter that hit a one-year high.

Shares of Burlington Stores were down nearly 1% on Tuesday. The stock has gained over 48% on a year-to-date basis, significantly outperforming the benchmark U.S. indices.

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