Burlington Stores (BURL) shares soared 12.5% in the last trading session to close at $246.86. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.8% loss over the past four weeks.U.S. stocks staged their biggest rally yesterday, after President Donald Trump announced a 90-day pause on reciprocal tariffs for all nations except China. Burlington has demonstrated strong momentum through its refined merchandising strategy, enhanced sto ...

Burlington Stores, Inc.’s (BURL) shares are currently trading 26.6% below its 52-week high of $298.89 reached on Nov. 25, 2024, making investors contemplate their next moves. Over the past year, BURL stock has gained 12.6%, outperforming the Zacks Retail-Discount Stores industry’s 7.7% growth. The company’s initiatives, including enhancing merchandising capabilities and optimizing store operations, have supported it to outperform the broader Retail-Wholesale sector’s growth of 3.3%.  The S&P 500 index decli ...

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 and Retail-Wholesale sector. With a forward 12-month P/S of 1.33, BURL is priced lower than the industry average of 1.70 and the sector average of 1.51.This makes the 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 ...

Store Operations and Expansion - Burlington Stores operates 1,108 stores as of February 1, 2025, up from 1,007 stores at the beginning of Fiscal 2024, reflecting a net increase of 116 stores during the year[20]. - The total gross square footage of all stores increased to 51.8 million square feet in Fiscal 2024, with selling square footage reaching 32.7 million square feet[20]. - The company aims to expand its store base to 2,000 locations in the long term, leveraging its smaller store prototype and market opportunities[19]. Sales and Product Categories - Burlington's sales by major product category for Fiscal 2024 included 21% ladies apparel, 27% accessories and shoes, and 20% home goods[32]. Distribution and Logistics - The company has six distribution centers that shipped over 99% of merchandise units to stores in Fiscal 2024, with a new distribution center in Ellabell, Georgia expected to be operational by Fiscal 2026[21][22]. Workforce and Employment - As of February 1, 2025, Burlington employed 77,532 associates, with 78% being part-time or seasonal[36]. - Burlington's commitment to employee development includes a blended learning approach and competitive compensation, with hourly wages increased annually since 2010[40][41]. Customer Demographics and Marketing - The core customer demographic is aged 25-49, ethnically diverse, with an annual household income of $25,000-$100,000, primarily residing in mid- to large-sized metropolitan areas[42]. - Burlington's marketing strategy includes a mix of television, radio, digital, and social media to engage customers effectively[43]. Financial Performance and Strategy - The company has a long-term target of increasing profitability through comparable store sales growth and enhancing operating margins[11]. - The business experiences seasonal influences, with higher sales and net income typically in the second half of the year, particularly during back-to-school and holiday seasons[45]. Debt and Financial Management - As of September 24, 2024, the company refinanced $933 million of term B-6 loans into term B-7 loans totaling $1,250 million, extending the maturity date to September 24, 2031, and reducing interest rate margins[261]. - The company terminated a $450 million interest rate swap and entered into a new $500 million interest rate swap at a blended rate of 2.83%[263]. - As of February 1, 2025, the company had $1,246.9 million of floating-rate debt, with a one percentage point interest rate change impacting cash interest expense by $4.4 million annually[265]. - The company’s ability to meet interest payment obligations depends on future performance and prevailing economic conditions, with potential adverse effects if cash flow is insufficient[266].

Group 1 - The core argument questions the resilience of consumer spending, which has been a key driver of the economy from 2021 through last year, following a significant spending increase in Q4 [1] - Bulls attribute the recent slowdown in consumer spending to bad weather in January and a natural cooling-off period after the holiday season [1]

Core Insights - Burlington Stores, Inc. reported strong fourth-quarter fiscal 2024 results, with both sales and earnings exceeding expectations, leading to an 8.7% increase in share price [1][4]. Financial Performance - Adjusted earnings per share (EPS) reached $4.07, surpassing the Zacks Consensus Estimate of $3.76, and increased by 11.2% from $3.66 in the previous year [4]. - Total sales amounted to $3,277.1 million, a 4.8% increase year-over-year, exceeding the Zacks Consensus Estimate of $3,261 million [4]. - Comparable store sales rose by 6% compared to the same period last year [4]. Margin Analysis - Gross margin improved to 42.9%, up 30 basis points from the previous year [5]. - Adjusted EBITDA increased by 8.8% to $451 million, with an adjusted EBITDA margin of 13.8%, up 50 basis points [6]. - Adjusted EBIT was $359.5 million, reflecting a 9.9% increase from $327.1 million in the prior year, with an adjusted EBIT margin of 11%, also up 50 basis points [6]. Operational Developments - The company expanded its footprint with new store openings and relocations, aligning with its long-term financial goals [3]. - Product sourcing costs rose to $217 million from $210 million in the previous year [6]. Liquidity and Debt Position - Burlington ended the quarter with cash and cash equivalents of $994.7 million and long-term debt of $1.54 billion [7]. - The company had $1.82 billion in liquidity, including $995 million in unrestricted cash [7]. - Share repurchase activity included the buyback of 218,443 shares for $61 million, with $263 million remaining under the current authorization [8]. Future Guidance - For Q1 fiscal 2025, total sales are expected to grow by 5-7%, with comparable store sales projected to remain flat [11]. - For fiscal 2025, total sales are anticipated to increase by 6-8%, with comparable store sales expected to rise between 0% and 2% [12]. - Adjusted EPS for fiscal 2025 is projected to range between $8.70 and $9.30, compared to $8.35 in the prior year [12].

In an era where consumer confidence is being tested by inflation and rising living costs, off-price retailers like Burlington Stores and Ross Stores are doubling down on strategies that emphasize value and flexibility. Both companies have adapted to increased demand for discounts by balancing quality, strategic assortments, pricing and store growth.Read more: Trade and Tariffs Worries Drive Decline in Consumer ConfidenceBurlington Elevates Product AssortmentsFor Burlington Stores, the strategy of “elevating ...

Burlington Stores, Inc. (NYSE: BURL ) is delivering in an uncertain time. The stock took it on the chin the last few weeks as consumer discretionary stocks have sold off on consumer confidence anxiety and broader macroeconomic fears. However, theLooking for more returns like this? That is what we do at BAD BEAT InvestingEnjoy more rapid-returns with our strategy to advance your savings and retirement timeline by embracing a blended trading and income approach!If you would like, you can try our service out a ...

Burlington Stores (BURL) Q4 2025 Earnings Call March 06, 2025 04:32 PM ET Company Participants David Glick - Group Senior VP of Investor Relations & TreasurerMichael O'Sullivan - CEOKristin Wolfe - Executive VP & CFOLorraine Hutchinson - Managing DirectorJohn Kernan - Managing DirectorBrooke Roach - Vice President - Equity Research Conference Call Participants Matthew Boss - Equity Research AnalystIke Boruchow - Managing Director: Senior Analyst - Retailing, Specialty Softlines and E-commerceAlex Straton - ...

Financial Data and Key Metrics Changes - Comparable store sales for Q4 increased by 6%, exceeding guidance of 0% to 2% [9][34] - Total sales grew by 10% in Q4 and 11% for the full year, following a 10% increase in 2023 [34][42] - Adjusted EBIT margin for Q4 was 11.1%, up 10 basis points year-over-year, and 100 basis points for the full year [38][42] - Adjusted earnings per share in Q4 was $4.13, representing a 12% increase compared to the previous year [38] Business Line Data and Key Metrics Changes - The strategy to elevate assortment contributed significantly to Q4 performance, focusing on a mix of well-known national brands and higher-quality items [10][12] - New store openings totaled 147 in 2024, with 101 net new stores added after accounting for relocations and closures [21][42] - Merchandise margin increased by 60 basis points, with freight improving by 20 basis points and supply chain costs leveraging by 50 basis points [42][44] Market Data and Key Metrics Changes - The company reported strong performance in lower-income trade areas, indicating success with the "need a deal" customer segment [82][88] - Comp store sales growth was driven by both "need a deal" and "want a deal" customers, with mid-single-digit growth in moderate and higher-income areas [88] Company Strategy and Development Direction - The company aims to grow total sales to approximately $16 billion and operating profit to about $1.6 billion by 2028, with a focus on new store openings, comp store sales growth, and operating margin expansion [19][20] - The strategy includes owning distribution centers to enhance control and avoid rent increases, with significant capital expenditures planned for 2024 and 2025 [45][48] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the business outlook, acknowledging potential economic and geopolitical risks while emphasizing the importance of being nimble and flexible [32][94] - The company anticipates total sales growth of 6% to 8% for 2025, with comp store sales expected to be flat to 2% [32][49] Other Important Information - The company ended Q4 with approximately $1.8 billion in total liquidity, including $995 million in cash [40] - Share repurchases totaled $61 million in Q4, with $263 million remaining on the share repurchase authorization [41] Q&A Session Summary Question: Can you elaborate on sales trends in the first quarter? - Management noted that February started weaker than expected, primarily due to weather and the timing of tax refunds, but sales improved as conditions normalized [62][67] Question: What are the drivers of margin contraction in the first quarter? - The first quarter is expected to have the most challenging margin comparisons due to fixed cost deleverage and modest merchandise margin improvement [72][75] Question: How did comp trends break down in Q4? - Strong performance was noted in lower-income areas, with comp growth driven by both "need a deal" and "want a deal" customers [82][88] Question: What are the implications of higher CapEx for debt levels and stock buybacks? - The company plans to manage debt levels carefully while continuing share repurchases, with a focus on owning distribution centers [110][114] Question: How do potential policy changes affect the customer? - Management acknowledged uncertainty around policy changes but expressed optimism about the business's ability to adapt and thrive [92][94] Question: Can you provide details on category and regional performance in Q4? - Comp growth was driven by increased traffic and average transaction value, with strong performance across all major categories [120][121]