The Retail–Discount Stores industry has managed to withstand evolving economic conditions and shifting consumer preferences. As a result, discount retailers have seen consistent demand for their offerings, ranging from essential goods to affordable discretionary items. As we approach 2025, the sector continues to show strong potential, buoyed by the growing demand for value-driven products.When faced with economic uncertainty, consumers tend to prioritize value, making discount retailers the go-to option. T ...

Burlington Stores, Inc. (BURL) is currently trading at a low price-to-sales (P/S) multiple, which is below the average of the Zacks Retail-Discount Stores industry. With a forward 12-month P/S of 1.58, BURL is priced lower than the industry average of 1.79. This makes BURL stock undervalued relative to its industry peers, presenting an attractive opportunity for investors seeking exposure to the sector. Furthermore, Burlington’s  Value Score of A underscores its appeal as a potential investment.BURL Stock L ...

Investment Recommendation - The analyst recommends a buy rating for Burlington Stores (NYSE: BURL) based on the expectation of a "beat and raise" performance in 3Q24 [1] - The investment is considered ideal if the company performs its core business in a sector projected to experience structural (organic) growth exceeding GDP growth over the next 5-10 years [1] - The company should profit from sustainable competitive advantages that translate into attractive unit economics [1] - The company should be managed by competent, ethical, and long-term thinkers with a fair valuation [1] Analyst's Position - The analyst has no stock, option, or similar derivative position in any of the companies mentioned and no plans to initiate any such positions within the next 72 hours [1] - The article expresses the analyst's own opinions and is not receiving compensation for it (other than from Seeking Alpha) [1] - The analyst has no business relationship with any company whose stock is mentioned in the article [1]

Financial Data and Key Metrics Changes - Total sales increased by 11% in Q3 2024, following a 12% growth in Q3 2023 [7][19] - Comparable store sales (comp sales) grew by 1%, compared to a 6% increase in the same period last year [8][19] - Adjusted EBIT margin expanded by 80 basis points, reaching 5.6% [21] - Adjusted earnings per share (EPS) for Q3 was $1.55, a 41% increase year-over-year [22] Business Line Data and Key Metrics Changes - Comp store sales for cold weather categories were down in the negative teens, while non-cold weather categories saw a 4% increase [10] - The mix of cold weather merchandise represented about 15% of sales in Q3, increasing to nearly 25% by October [10] Market Data and Key Metrics Changes - The company noted that warmer temperatures significantly impacted Q3 comp sales, estimated to be a 300 basis point effect [10][31] - Major hurricanes in Q3 also negatively affected comp sales by approximately 100 basis points [31] Company Strategy and Development Direction - The company aims to grow total sales to approximately $16 billion and operating income to $1.6 billion by 2028 [13] - A new store opening program is a key driver, with 147 new stores opened in 2024, projecting 101 net new stores by year-end [14][16] - The company is focusing on acquiring existing leases from retailers in bankruptcy to enhance its store pipeline [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q4, with November sales running ahead of plan despite a compressed holiday calendar [12] - The company plans conservatively for 2025, anticipating total sales growth in the high single digits and comp sales growth of flat to 2% [17] Other Important Information - The gross margin rate for Q3 was 43.9%, an increase of 70 basis points year-over-year [20] - The company repurchased $56 million in common stock during the quarter, with $325 million remaining on its share repurchase authorization [23] Q&A Session Summary Question: Impact of weather on Q3 comp sales - Management clarified that the 300 basis point impact from warmer temperatures does not include hurricane effects, which added another point to the comp sales decline [31] Question: Inventory levels and markdown risk - Management indicated that inventory levels were well managed, with comp store inventories down 2% and no major markdown liabilities heading into Q4 [32] Question: Health of low-income consumers - Management noted that stores in lower-income areas are outperforming the chain, indicating a potential trend of increased spending among this demographic [39] Question: Drivers of margin expansion in Q3 - Management detailed that margin expansion was driven by lower markdowns, faster inventory turns, and improved supply chain efficiencies [40] Question: Outlook for 2025 - Management provided a preliminary outlook for 2025, expecting modest margin expansion and high single-digit revenue growth driven by new store openings [46]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 2, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |---------------------------------------------------------------------------------------|-----------------------------------------------|------------------------------ ...

BURLINGTON, N.J., Nov. 26, 2024 (GLOBE NEWSWIRE) -- Burlington Stores, Inc. (NYSE: BURL), a nationally recognized off-price retailer of high-quality, branded apparel, footwear, accessories, and merchandise for the home at everyday low prices, announced today that Shira Goodman, former Chief Executive Officer of Staples, Inc., is joining its Board of Directors and its Audit Committee effective January 1, 2025. John Mahoney, Chairman of the Board, stated, “We are very pleased to welcome Shira to our Board as ...

Core Insights - Burlington Stores, Inc. reported third-quarter fiscal 2024 results with sales below expectations but earnings exceeding estimates, showing year-over-year growth in both metrics [1][3]. Financial Performance - Adjusted earnings per share (EPS) reached $1.55, surpassing the Zacks Consensus Estimate of $1.54, and increased by 58.2% from $0.98 in the same quarter last year [3]. - Total sales amounted to $2,530.7 million, a 10.5% increase from the prior year, but fell short of the Zacks Consensus Estimate of $2,562 million [4]. - Comparable store sales rose by 1% year-over-year [4]. Margin Analysis - Gross margin improved to 43.9%, up 70 basis points from the previous year, with merchandise margin expanding by 50 basis points due to lower markdowns and higher markup [5]. - Adjusted EBITDA increased by 30.3% to $228.8 million, with an adjusted EBITDA margin of 9.1%, up 140 basis points [7]. Expense Management - Adjusted selling, general and administrative (SG&A) expenses rose by 9.2% year-over-year to $680 million, but as a percentage of net sales, it decreased to 26.9%, down 40 basis points [6]. Cash and Debt Position - The company ended the quarter with cash and cash equivalents of $857.8 million and long-term debt of $1.54 billion, resulting in total liquidity of $1.71 billion [8][9]. Future Guidance - For the fiscal fourth quarter, Burlington anticipates a 5-7% increase in total sales and a 0-2% increase in comparable store sales [11]. - Adjusted EPS is projected to be between $3.55 and $3.75, compared to $3.69 in the previous year [12]. - For fiscal 2024, total sales are expected to grow by 9-10%, with comparable store sales projected to increase by 2-4% [13][14].

A warmer-than-normal autumn wasn’t enough to stall sales growth for Burlington Stores.The off-price clothing retailer posted earnings Tuesday (Nov. 26) showing total sales up 11% for the third quarter (Q3), following 12% sales growth last year.Comparable sales — up 1% — were affected by “significantly warmer temperatures than last year,” CEO Michael O’Sullivan said during an earnings call.“At Burlington, we are particularly sensitive to warmer weather in Q3,” he told analysts. “Many shoppers still think of ...

Core Insights - Burlington Stores reported revenue of $2.53 billion for the quarter ended October 2024, reflecting a year-over-year increase of 10.5% [1] - The company's EPS was $1.55, up from $0.98 in the same quarter last year, indicating strong earnings growth [1] - Revenue fell short of the Zacks Consensus Estimate of $2.56 billion, resulting in a surprise of -1.23%, while EPS exceeded the consensus estimate of $1.54 by 0.65% [1] Financial Performance Metrics - Comparable Store Sales were reported at 1%, below the estimated 2.3% by analysts [3] - The number of stores at the end of the period was 1,103, surpassing the average estimate of 1,095 from four analysts [3] - Net Sales revenue was $2.53 billion, compared to the average estimate of $2.56 billion, marking a year-over-year change of +10.6% [3] - Other revenue was reported at $4.52 million, slightly below the average estimate of $4.83 million, representing a year-over-year decline of -3.2% [3] Stock Performance - Burlington Stores' shares have returned +15.2% over the past month, outperforming the Zacks S&P 500 composite's +3.2% change [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Burlington Stores (BURL) came out with quarterly earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.54 per share. This compares to earnings of $0.98 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.65%. A quarter ago, it was expected that this discount retailer would post earnings of $0.95 per share when it actually produced earnings of $1.20, delivering a surprise of 26.32%.Over the last four quarters, t ...