Investors with an interest in Retail - Discount Stores stocks have likely encountered both Burlington Stores (BURL) and Costco (COST) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Sty ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.It also includes access to the Zacks Style Scores.What are the Zacks Style Scores?The Zacks Style S ...

Burlington Stores (BURL) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual inves ...

Investors interested in stocks from the Retail - Discount Stores sector have probably already heard of Burlington Stores (BURL) and Costco (COST) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with posi ...

liability and potentially disrupt our business. Building brand reputation is important to our continuing success. Our reputation is partially based on perceptions of various subjective qualities and overall integrity. Any incident that erodes the trust or confidence of our customers or the general public could adversely affect our reputation and business, particularly if the incident results in significant adverse publicity or governmental inquiry. Such an incident could also include alleged acts or omissio ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scores?T ...

Burlington Stores, Inc. (BURL) has reported impressive fourth-quarter fiscal 2023 results, wherein sales and earnings beat the Zacks Consensus Estimate. Also, both top and bottom lines grew year over year.Insight Into the HeadlinesBurlington Stores has reported adjusted earnings of $3.66 per share, surpassing the Zacks Consensus Estimate of earnings of $3.28. The bottom line rose 23.6% from $2.96 in the year-ago quarter.Total revenues of $3,126.4 million beat the Zacks Consensus Estimate of $3,039 million a ...

Financial Data and Key Metrics Changes - In Q4, the company achieved a comp store sales increase of 2% on a 13-week basis, exceeding guidance of -2% to flat [28] - Total sales growth for the quarter was 9%, higher than the guidance of 5% to 7%, driven by higher comp store sales and the addition of $138 million from the 53rd week [42] - For the full year 2023, total sales grew by 10%, with comp growth of 4%, aligning with the original guidance of 3% to 5% [32][47] - Adjusted EPS in Q4 was $3.69, significantly above the guidance range of $3.10 to $3.25 [14] - The adjusted EBIT margin for Q4 was 11.1%, 110 basis points higher than the previous year, exceeding guidance [44] Business Line Data and Key Metrics Changes - The company opened 80 net new stores in 2023, with a total of 1,007 stores at the end of Q4 [6][32] - Comp sales growth for the full year was driven by a mix of recognizable brands and strong performance in holiday categories [30] - Clearance merchandise comp selling was down double digits, but regular priced merchandise comp sales were up 4% [31] Market Data and Key Metrics Changes - The lower-income customer segment showed improvement, responding well to value offerings, which helped underpin comp growth in Q4 [29] - The company noted that trade-down shoppers, particularly higher-income customers, contributed to comp growth [30][96] Company Strategy and Development Direction - The company aims for total sales growth of 9% to 11% in 2024, driven by 100 net new stores and comp growth of 0% to 2% [7][48] - The long-term goal is to grow total sales to approximately $16 billion and operating income to about $1.6 billion over the next five years [39][79] - The company plans to open approximately 140 gross new stores in 2024, with a focus on high-quality locations [65][91] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the economic outlook for 2024, citing uncertainty in consumer behavior and external factors [4][82] - The company is optimistic about the long-term growth potential, particularly in the off-price retail sector, and plans to enhance execution strategies [69][125] - Management acknowledged the need to offer stronger values to attract trade-down shoppers and improve overall performance [11][78] Other Important Information - The company ended Q4 with approximately $1.6 billion in total liquidity, including $925 million in cash [45] - Share repurchases totaled $103 million in Q4, with $500 million remaining on the buyback authorization [46][132] - The gross margin rate for Q4 was 42.6%, an increase of 190 basis points compared to last year, driven by lower markdowns and freight expenses [71] Q&A Session Summary Question: Can you elaborate on the rationale behind your 2024 comp sales guidance? - Management indicated that the guidance is based on a cautious approach, allowing flexibility to react to market conditions, with a historical average comp growth target of mid-single digits over the next five years [52][54] Question: What are the drivers of margin improvement in 2024? - The primary drivers include higher merchandise margins, lower freight expenses, and supply chain efficiencies, with expectations of EBIT margin expansion of 10 to 50 basis points [85][115] Question: How do department store closures impact your business? - Management noted that closures of brick-and-mortar competitors typically benefit the company by increasing traffic, although the impact varies by retailer and location [145] Question: What is the outlook for the low-income consumer? - Management believes the situation for low-income consumers has improved compared to last year, but recovery will take time due to ongoing inflationary pressures [147]

For the quarter ended January 2024, Burlington Stores (BURL) reported revenue of $3.13 billion, up 13.9% over the same period last year. EPS came in at $3.66, compared to $2.96 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $3.04 billion, representing a surprise of +2.88%. The company delivered an EPS surprise of +11.59%, with the consensus EPS estimate being $3.28.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- an ...