Why Burlington Stores Stock Jumped Today

Date:

Share post:


Shares of the off-price retailer rose after the company delivered a strong earnings report.

Shares of Burlington Stores (BURL 17.56%) soared today after the off-price retailer delivered a better-than-expected result in its first-quarter earnings report, beating estimates on the top and bottom lines.

As a result, the stock finished the session up 17.6%.

Image source: Getty Images.

Burlington impresses the market

The off-price retailer reported revenue growth of 11% to $2.36 billion, which edged out the analyst estimate of $2.34 billion, and comparable-store sales were up 2% from the year-ago quarter.

What was more impressive were the company’s gains further down the income statement as gross margin improved 120 basis points with the help of lower markdowns, and adjusted operating margin improved 170 basis points to 5.7%.

On the bottom line, adjusted earnings per share (EPS) jumped 68% to $1.42, benefiting in part from the shift in the timing of expenses, which beat estimates of $1.04.

Burlington is taking advantage of the Bed Bath & Beyond bankruptcy, acquiring the retailer’s leases to fuel its expansion as demand for off-price retail remains strong.

CEO Michael O’Sullivan said momentum improved as the quarter went on, with 4% comparable sales growth in both March and April, though he did see “uncertainty in the external environment,” as the company maintained its comparable-store sales guidance of 0% to 2%.

Can Burlington keep growing?

Looking ahead to the rest of the year, Burlington lowered its sales guidance growth from 9% to 11% to 8%-10%, but it raised its adjusted earnings EPS guidance to $7.35-$7.75 from an earlier range of $7 to $7.60. The company also expects to open approximately 100 new stores, showing it still has a long runway for growth.

While the stock isn’t cheap, Burlington has a long track record of growth and execution, and the increase in profit guidance bodes well for another guidance hike later in the year.

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

https://www.highcpmgate.com/f0c2i8ki?key=d7778888e3d5721fde608bfdb62fd997

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related articles

Is the Mortgage Industry Safe with CFPB Under Fire?

<div id="page" x-data="sidebarAds(24%7C&utm_source=Bigger%20Pockets&utm_term=Bigger%20Pockets","linkTitle":"Schedule a Call Today","id":"65d4be7b89ca4","impressionCount":"685855","dailyImpressionCount":"589","impressionLimit":"878328","dailyImpressionLimit":"2780","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-720x90-1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-300x250-1.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-300x600-1.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-320x50-1.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"Center Street Lending","description":"","imageURL":null,"imageAlt":null,"title":"","body":"","linkURL":"https://centerstreetlending.com/bp/","linkTitle":"","id":"664ce210d4154","impressionCount":"404632","dailyImpressionCount":"498","impressionLimit":"600000","dailyImpressionLimit":"2655","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_720x90-1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_300x250-2.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_300x600-2.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_320x50.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"CV3 Financial","description":"","imageURL":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/Logo-512x512-1.png","imageAlt":"","title":"","body":"","linkURL":"https://cv3financial.com/financing-biggerpockets/?utm_source=biggerpockets&utm_medium=website&utm_campaign=august&utm_term=bridge&utm_content=banner","linkTitle":"","id":"66a7f395244ed","impressionCount":"208902","dailyImpressionCount":"462","impressionLimit":"636364","dailyImpressionLimit":"4187","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/CV3-720x90-1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/CV3-300x250-1.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/CV3-300x600-1.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/CV3-320x50-1.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"Baselane","description":"Ad copy A","imageURL":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/09/SquareLogo-MidnightOnWhite-1.png","imageAlt":"","title":"","body":"","linkURL":"https://www.baselane.com/lp/bigger-pockets?utm_source=partner_biggerpockets&utm_medium=Content&utm_campaign=bp_blog_ad&utm_term=rebranded_v3","linkTitle":"","id":"66b39df6e6623","impressionCount":"179724","dailyImpressionCount":"352","impressionLimit":"250000","dailyImpressionLimit":"1713","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/11/720x90.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/11/300x250.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/11/300x600.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/11/grow_business_not_to_do_320x50.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"Baselane","description":"Ad copy B","imageURL":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/09/SquareLogo-MidnightOnWhite-1.png","imageAlt":"","title":"","body":"","linkURL":"https://www.baselane.com/lp/bigger-pockets?utm_source=partner_biggerpockets&utm_medium=Content&utm_campaign=bp_blog_ad&utm_term=rebranded_v4","linkTitle":"","id":"66b39df70adac","impressionCount":"193664","dailyImpressionCount":"408","impressionLimit":"250000","dailyImpressionLimit":"1713","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/11/Copy-of-720x90-1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/11/Copy-of-300x250-1.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/11/Copy-of-300x600-1.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/11/Copy-of-320x50-1.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"","description":"","imageURL":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-Logo.png","imageAlt":"","title":"","body":"","linkURL":"https://hubs.ly/Q02LzKH60","linkTitle":"","id":"66c3686d52445","impressionCount":"207804","dailyImpressionCount":"425","impressionLimit":"500000","dailyImpressionLimit":"6173","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-720x90-1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-300x250-1.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-300x600-1.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-320x50-1.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"1-800 Accountant","description":"","imageURL":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/12/Logo_Square_No-Brand-Name.png","imageAlt":"","title":"","body":"","linkURL":" https://1800accountant.com/lp/online-business-tax-preparation?utm_source=biggerpockets&utm_medium=cpc&utm_campaign=tof&utm_content=banners_feb","linkTitle":"","id":"67572ea6e4db7","impressionCount":"64927","dailyImpressionCount":"371","impressionLimit":"89616","dailyImpressionLimit":"5389","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/720x90BPver1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/300x250BPver1.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/300x600BPver1.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/320x50BPver1.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"1-800 Accountant","description":"","imageURL":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/12/Logo_Square_No-Brand-Name.png","imageAlt":"","title":"","body":"","linkURL":" https://1800accountant.com/lp/online-business-tax-preparation?utm_source=biggerpockets&utm_medium=cpc&utm_campaign=tof&utm_content=banners_feb","linkTitle":"","id":"67572ea706256","impressionCount":"39629","dailyImpressionCount":"292","impressionLimit":"89616","dailyImpressionLimit":"7872","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/720x90BPver2.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/300x250BPver2.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/300x600BPver2.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/320x50BPver2.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"RentRedi","description":"","imageURL":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/12/rentredi-logo-512x512-1.png","imageAlt":"","title":"","body":"","linkURL":"https://rentredi.com/biggerpockets/?utm_source=biggerpockets&utm_medium=partner&utm_campaign=banner&utm_content=pro_300x600","linkTitle":"","id":"67747625afd7b","impressionCount":"42952","dailyImpressionCount":"299","impressionLimit":"150000","dailyImpressionLimit":"6201","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/12/BP-Blog-Banner-Ad-720x90-1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/12/BP-Blog-Banner-Ad-300x250-1.png","r300x600":null,"r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/12/BP-Blog-Banner-Ad-320x50-1.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":null,"r320x50Alt":""},{"sponsor":"RentRedi","description":"","imageURL":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/12/rentredi-logo-512x512-1.png","imageAlt":"","title":"","body":"","linkURL":"https://rentredi.com/biggerpockets/?utm_source=biggerpockets&utm_medium=partner&utm_campaign=banner&utm_content=bp2025_300x600","linkTitle":"","id":"67747625c36bd","impressionCount":"43330","dailyImpressionCount":"335","impressionLimit":"150000","dailyImpressionLimit":"6201","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/12/720x90-BP-CON-RentRedi.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/12/BP-Blog-Banner-Ad-300x250-2.png","r300x600":null,"r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/12/BP-Blog-Banner-Ad-320x50_1.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":null,"r320x50Alt":""},{"sponsor":"NREIG","description":"","imageURL":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/NREIGLogo_512x512-1-1-1.png","imageAlt":"","title":"","body":"","linkURL":"https://go.nreig.com/l/1008742/2024-12-19/53l7gf","linkTitle":"","id":"677c225a7b017","impressionCount":"43644","dailyImpressionCount":"335","impressionLimit":"1000000","dailyImpressionLimit":"2874","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/NREIG-720x90-1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/NREIG-300x250-1.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/NREIG-300x600-1.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/NREIG-320x50-1.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"Equity...

Spirit Airlines Emerges from Bankruptcy With Premium Goals

Spirit Airlines Emerges from Bankruptcy Spirit Airlines has emerged from bankruptcy with significantly less debt, greater financial flexibility,...

Lenders lean into AI, automation

AI and automation can unlock greater access to capital for underserved clients, lenders and venture capitalist investors...