Burlington Stores profit more than doubles, stock trades flat

By Steve Gelsi

Sales rise 13% as margins improve but it said it's facing some cost headwinds

Burlington Stores Inc. more than doubled its second-quarter profit and beat analyst expectations, but its stock traded flat as the retailer flagged cost challenges ahead.

Burlington Stores (BURL) said its profit for the three months ended Aug. 3 rose to $73.76 million, or $1.15 a share, from $30.89 million, or 47 cents a share, in the year-ago quarter.

Adjusted second-quarter profit from the Burlington, N.J., apparel store chain totaled $1.24 a share, well ahead of the FactSet consensus estimate of 96 cents a share.

Second-quarter sales increased by 13% to $2.46 billion from $2.17 billion in the year-ago quarter, ahead of the analyst estimate of $2.42 billion.

Burlington Stores said it expects adjusted 2024 earnings of $7.66 a share to $7.96 a share, excluding 11 cents a share of expenses from its acquired Bed Bath & Beyond leases.

Analysts currently project 2024 earnings of $7.71 a share.

Burlington Stores Chief Executive Michael O'Sullivan said the company was pleased with its second-quarter results, with a 5% comparable store sales boost that was "well ahead of expectations" as profit margins improved.

While the company faces some cost pressure from ocean freight expenses, and other risks so it continues to remain cautious.

Burlington's stock rose 0.2% on Thursday morning.

Including Thursday's moves, Burlington Stores's stock had risen 40.5% in 2024, well ahead of the 17.9% rise by the S&P 500 SPX.

-Steve Gelsi

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08-29-24 1007ET

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