It also includes access to the Zacks Style Scores. Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform. Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Fl ...

Core Viewpoint - Investors in the Retail - Discount Stores sector should consider Burlington Stores (BURL) and Costco (COST) for potential value opportunities, with BURL currently presenting a better value option based on various financial metrics [1][7]. Valuation Metrics - BURL has a forward P/E ratio of 30.35, significantly lower than COST's forward P/E of 51.25, indicating that BURL may be undervalued relative to its earnings potential [5]. - The PEG ratio for BURL is 1.23, while COST's PEG ratio is 5.41, suggesting that BURL's expected earnings growth is more favorable compared to its price [5]. - BURL's P/B ratio stands at 14.17, compared to COST's P/B of 16.85, further supporting the notion that BURL is more attractively priced relative to its book value [6]. Analyst Outlook - BURL is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, indicating a positive trend in earnings estimate revisions [3][7]. - BURL holds a Value grade of B, while COST has a Value grade of C, reflecting BURL's stronger position in terms of value metrics [6].

Company Overview - Burlington Stores, Inc. is a retailer of branded apparel products and operates as a Fortune 500 company, headquartered in New Jersey, with operations in the United States and Puerto Rico [10] - The company offers a variety of products including ladies sportswear, menswear, youth apparel, baby furniture, accessories, home décor, gifts, and coats [10] Investment Ratings - Burlington Stores has a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong potential for investment [10] - The company is also highlighted as a top pick for growth investors due to its favorable Growth Style Score of B [11] Financial Performance - Burlington Stores is forecasted to achieve year-over-year earnings growth of 24.6% for the current fiscal year [11] - In the last 60 days, six analysts have revised their earnings estimates higher, with the Zacks Consensus Estimate increasing by $0.18 to $7.55 per share [11] - The company has an average earnings surprise of 21.7%, further indicating strong financial performance [11]

Core Viewpoint - Burlington Stores (BURL) has been outperforming its peers in the Retail-Wholesale sector this year, with a year-to-date gain of approximately 17.7% compared to the sector average of 9.7% [4]. Company Performance - Burlington Stores is currently ranked 2 (Buy) in the Zacks Rank system, which focuses on earnings estimates and revisions to identify stocks with improving earnings outlooks [3]. - The Zacks Consensus Estimate for Burlington's full-year earnings has increased by 7.4% over the past quarter, indicating improved analyst sentiment [4]. - The company belongs to the Retail - Discount Stores industry, which has an average year-to-date gain of 15.4%, further highlighting Burlington's strong performance [6]. Sector and Industry Context - The Retail-Wholesale sector consists of 213 individual stocks and is ranked 13 in the Zacks Sector Rank [2]. - The Retail - Discount Stores industry, which includes Burlington, is ranked 76 in the Zacks Industry Rank [6]. - In comparison, another outperforming stock in the Retail-Wholesale sector, Carvana (CVNA), has seen a year-to-date increase of 91% and has a Zacks Rank of 2 (Buy) [5].

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-thanexpected 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%. 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, ...

Part I [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company reported a net income of **$78.5 million** for the quarter ended May 4, 2024, a significant increase from **$32.7 million** in the prior-year period, driven by a **10.5%** rise in net sales to **$2.36 billion** Q1 Fiscal 2024 Key Financial Results (in thousands, except per share data) | Metric | Three Months Ended May 4, 2024 | Three Months Ended April 29, 2023 | | :--- | :--- | :--- | | **Net Sales** | $2,357,318 | $2,132,793 | | **Net Income** | $78,514 | $32,748 | | **Diluted EPS** | $1.22 | $0.50 | Key Balance Sheet Data (in thousands) | Metric | May 4, 2024 | April 29, 2023 | | :--- | :--- | :--- | | **Total Assets** | $7,695,252 | $7,003,879 | | **Total Liabilities** | $6,663,826 | $6,202,405 | | **Total Stockholders' Equity** | $1,031,426 | $801,474 | Cash Flow Summary (in thousands) | Metric | Three Months Ended May 4, 2024 | Three Months Ended April 29, 2023 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $49,372 | $(77,952) | | **Net cash used in investing activities** | $(165,532) | $(86,157) | | **Net cash used in financing activities** | $(66,867) | $(176,071) | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details significant accounting policies, equity changes, debt, derivatives, and other commitments supporting the consolidated financial statements [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q1 performance to a **10.5%** increase in net sales and improved gross margin, while focusing on strategic initiatives and store expansion - Net sales increased by **10.5%** to **$2.36 billion** in Q1 2024, primarily due to a **2%** increase in comparable store sales and sales from **88** net new stores opened since Q1 2023[104](index=104&type=chunk) - Gross margin rate increased to **43.5%** from **42.3%** in the prior year, driven by higher merchandise margins and reduced freight costs[35](index=35&type=chunk) Reconciliation of Net Income to Adjusted Net Income (in thousands) | Description | Three Months Ended May 4, 2024 | Three Months Ended April 29, 2023 | | :--- | :--- | :--- | | **Net income** | $78,514 | $32,748 | | Net favorable lease costs | 2,970 | 4,064 | | Loss on extinguishment of debt | — | 24,644 | | Impairment charges - long-lived assets | 8,210 | 844 | | Tax effect | (2,881) | (7,302) | | **Adjusted Net Income** | **$86,813** | **$54,998** | - The company plans to open approximately **100** net new stores in Fiscal 2024 and expects to average this pace through Fiscal 2028, aiming for a long-term total of **2,000** stores[16](index=16&type=chunk)[299](index=299&type=chunk) [Ongoing Initiatives for Fiscal 2024](index=31&type=section&id=Ongoing%20Initiatives%20for%20Fiscal%202024) The company's key initiatives for Fiscal 2024 focus on driving comparable store sales growth, expanding the retail store base, and enhancing operating margins - To drive sales, the company is focusing on chasing sales trends, operating with leaner inventories, and investing in merchandising capabilities to improve vendor relationships and merchandise buys[269](index=269&type=chunk)[15](index=15&type=chunk) - Real estate strategy involves averaging about **100** net new stores per year through Fiscal 2028, with a long-term goal of **2,000** stores, while also enhancing the experience in existing stores through relocations and downsizes[16](index=16&type=chunk) - Margin enhancement initiatives include optimizing markdowns through better inventory turns, improving supply chain efficiency to lower freight costs, and challenging expenses to drive operating leverage[17](index=17&type=chunk)[272](index=272&type=chunk) [Key Performance and Non-GAAP Measures](index=34&type=section&id=Key%20Performance%20and%20Non-GAAP%20Measures) Management uses key metrics and non-GAAP measures like Adjusted Net Income and Adjusted EBITDA to assess performance and provide transparency Reconciliation of Net Income to Adjusted EBIT and Adjusted EBITDA (in thousands) | Description | Three Months Ended May 4, 2024 | Three Months Ended April 29, 2023 | | :--- | :--- | :--- | | **Net income** | $78,514 | $32,748 | | Interest expense | 16,649 | 19,345 | | Interest income | (8,072) | (5,459) | | Net favorable lease costs | 2,970 | 4,064 | | Loss on extinguishment of debt | — | 24,644 | | Impairment charges - long-lived assets | 8,210 | 844 | | Income tax expense | 31,125 | 10,570 | | **Adjusted EBIT** | **129,396** | **86,756** | | Depreciation and amortization | 81,965 | 70,529 | | **Adjusted EBITDA** | **$211,361** | **$157,285** | Change in Comparable Store Sales | Fiscal Quarter Ended | Change in Comparable Store Sales | | :--- | :--- | | May 4, 2024 | 2% | | April 29, 2023 | 4% | [Results of Operations](index=40&type=section&id=Results%20of%20Operations) For Q1 Fiscal 2024, net sales increased **10.5%** to **$2.36 billion**, with improved gross margin and reduced SG&A expenses leading to a more than doubled net income Condensed Consolidated Statements of Income as a Percentage of Net Sales | Item | % of Net Sales (Q1 2024) | % of Net Sales (Q1 2023) | | :--- | :--- | :--- | | Net sales | 100.0% | 100.0% | | Cost of sales | 56.5% | 57.7% | | Selling, general and administrative expenses | 35.0% | 35.4% | | Income before income tax expense | 4.7% | 2.1% | | Net income | 3.4% | 1.6% | - SG&A expenses decreased as a percentage of sales primarily due to a **100 basis point** improvement in product sourcing costs from supply chain initiatives, partially offset by increased store-related costs[287](index=287&type=chunk) - Impairment charges on long-lived assets were **$8.2 million** in Q1 2024, related to a sale-leaseback transaction, compared to **$0.8 million** in Q1 2023[40](index=40&type=chunk) - The effective tax rate for Q1 2024 was **28.4%**, up from **24.4%** in Q1 2023, mainly due to higher tax expense from stock-based compensation alongside higher pre-tax income[42](index=42&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$742.3 million** in cash and **$779.1 million** available under its ABL Line of Credit, while projecting **$750 million** in capital expenditures for Fiscal 2024 - Net cash from operating activities improved to a provision of **$49.4 million** in Q1 2024 from a use of **$78.0 million** in Q1 2023, driven by improved sales, gross margin, and working capital changes[295](index=295&type=chunk) - Fiscal 2024 capital expenditures are estimated at approximately **$750 million**, net of landlord allowances, with funds allocated to new stores, remodels, supply chain, and IT initiatives[75](index=75&type=chunk) - During Q1 2024, the company repurchased **312,238** shares for **$63.4 million**. As of May 4, 2024, **$441.7 million** remained available under the share repurchase authorization[117](index=117&type=chunk) Debt Obligations as of May 4, 2024 (in millions) | Instrument | Obligation | | :--- | :--- | | Term Loan Facility | $931.2 | | 2025 & 2027 Convertible Notes | $453.2 | | ABL Line of Credit | $0 | | Finance lease obligations | $27.3 | [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There were no material changes to the company's quantitative and qualitative disclosures about market risk from its Fiscal 2023 Annual Report on Form 10-K - There were no material changes to the company's disclosures about market risk from those in the Fiscal 2023 10-K[89](index=89&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of May 4, 2024, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of May 4, 2024, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective[120](index=120&type=chunk) - No changes occurred during the quarter ended May 4, 2024, that materially affected or are reasonably likely to materially affect the company's internal control over financial reporting[62](index=62&type=chunk) Part II—Other Information [Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions, including class actions, but management believes these will not materially adversely affect its financial condition or operations - The company is involved in various lawsuits and regulatory proceedings, including class actions for alleged labor statute violations, but does not expect them to have a material adverse effect on its financial position[110](index=110&type=chunk)[233](index=233&type=chunk) [Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes in the company's risk factors from those disclosed in its Fiscal 2023 Annual Report on Form 10-K - No material changes have occurred in the company's risk factors since the filing of the Fiscal 2023 10-K[92](index=92&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the three months ended May 4, 2024, the company repurchased **312,238** shares of common stock, with **$441.7 million** remaining under its authorization Issuer Purchases of Equity Securities (Q1 2024) | Month | Total Number of Shares Purchased | Average Price Paid Per Share | Dollar Value of Shares Remaining Under Program (in thousands) | | :--- | :--- | :--- | :--- | | Feb 4 - Mar 2, 2024 | 49,326 | $197.61 | $495,337 | | Mar 3 - Apr 6, 2024 | 134,554 | $217.35 | $466,092 | | Apr 7 - May 4, 2024 | 128,358 | $190.15 | $441,684 | | **Total** | **312,238** | | | [Other Information](index=54&type=section&id=Item%205.%20Other%20Information) Jennifer Vecchio, Group President and Chief Merchandising Officer, adopted a Rule 10b5-1 trading plan for up to **5,923** shares, with no other director or officer adopting, modifying, or terminating a trading arrangement during the quarter - Jennifer Vecchio, Group President and Chief Merchandising Officer, adopted a Rule 10b5-1 trading plan on March 27, 2024, for the potential sale of up to **5,923** shares[95](index=95&type=chunk) - No other director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three-month period[68](index=68&type=chunk) [Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the quarterly report, including the Amended and Restated Certificate of Incorporation and required certifications from the CEO and CFO - The report includes required certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[126](index=126&type=chunk)

Key Takeaways Burlington Stores reported profit and sales that beat forecasts as it reduced inventories and drew in more shoppers later in the first quarter. The off-price retailer's gross margin improved as it limited promotions and lowered freight costs. The news sent Burlington Stores shares to their highest level in more than two years. Burlington Stores (BURL) shares flew higher when the off-price apparel retailer posted better-than-expected results and strong guidance on reduced inventories and a pick ...

Burlington Stores, Inc. (BURL) has reported impressive first-quarter fiscal 2024 results, wherein sales and earnings beat the Zacks Consensus Estimate. Also, both top and bottom lines grew year over year. Insight Into the Headlines Burlington Stores has reported adjusted earnings of $1.42 per share, surpassing the Zacks Consensus Estimate of earnings of $1.04. The bottom line rose 69% from 84 cents in the year-ago quarter. Total revenues of $2,361.6 million beat the Zacks Consensus Estimate of $2,343 millio ...

Cost-conscious customers from all income levels are helping drive sales at Burlington Stores. The off-price retailer saw its total sales increase by 11% during the first quarter of the year, according to earnings released Thursday (May 30). Speaking during a call with analysts, CEO Michael O'Sullivan said the uptick came as consumers from "all income groups" were feeling pressured. The company had an especially strong March and April, and O'Sullivan said that trend was driven by two factors, including low-i ...

Burlington Stores Inc. (NYSE:BURL) Q1 2024 Earnings Conference Call May 30, 2024 8:30 AM ET Company Participants Michael O’Sullivan - Chief Executive Officer Kristin Wolfe - Executive Vice President, Chief Financial Officer David Glick - Senior Vice President, Investor Relations Conference Call Participants Matthew Boss - JP Morgan Ike Boruchow - Wells Fargo Lorraine Hutchinson - Bank of America John Kernan - TD Cowen Brooke Roach - Goldman Sachs Alex Straton - Morgan Stanley Adrienne Yih - Barclays Dana Te ...