Investment Recommendation - The analyst recommends a buy rating for Burlington Stores (NYSE: BURL) based on the expectation of a "beat and raise" performance in 3Q24 [1] - The investment is considered ideal if the company performs its core business in a sector projected to experience structural (organic) growth exceeding GDP growth over the next 5-10 years [1] - The company should profit from sustainable competitive advantages that translate into attractive unit economics [1] - The company should be managed by competent, ethical, and long-term thinkers with a fair valuation [1] Analyst's Position - The analyst has no stock, option, or similar derivative position in any of the companies mentioned and no plans to initiate any such positions within the next 72 hours [1] - The article expresses the analyst's own opinions and is not receiving compensation for it (other than from Seeking Alpha) [1] - The analyst has no business relationship with any company whose stock is mentioned in the article [1]

Financial Data and Key Metrics Changes - Total sales increased by 11% in Q3 2024, following a 12% growth in Q3 2023 [7][19] - Comparable store sales (comp sales) grew by 1%, compared to a 6% increase in the same period last year [8][19] - Adjusted EBIT margin expanded by 80 basis points, reaching 5.6% [21] - Adjusted earnings per share (EPS) for Q3 was $1.55, a 41% increase year-over-year [22] Business Line Data and Key Metrics Changes - Comp store sales for cold weather categories were down in the negative teens, while non-cold weather categories saw a 4% increase [10] - The mix of cold weather merchandise represented about 15% of sales in Q3, increasing to nearly 25% by October [10] Market Data and Key Metrics Changes - The company noted that warmer temperatures significantly impacted Q3 comp sales, estimated to be a 300 basis point effect [10][31] - Major hurricanes in Q3 also negatively affected comp sales by approximately 100 basis points [31] Company Strategy and Development Direction - The company aims to grow total sales to approximately $16 billion and operating income to $1.6 billion by 2028 [13] - A new store opening program is a key driver, with 147 new stores opened in 2024, projecting 101 net new stores by year-end [14][16] - The company is focusing on acquiring existing leases from retailers in bankruptcy to enhance its store pipeline [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q4, with November sales running ahead of plan despite a compressed holiday calendar [12] - The company plans conservatively for 2025, anticipating total sales growth in the high single digits and comp sales growth of flat to 2% [17] Other Important Information - The gross margin rate for Q3 was 43.9%, an increase of 70 basis points year-over-year [20] - The company repurchased $56 million in common stock during the quarter, with $325 million remaining on its share repurchase authorization [23] Q&A Session Summary Question: Impact of weather on Q3 comp sales - Management clarified that the 300 basis point impact from warmer temperatures does not include hurricane effects, which added another point to the comp sales decline [31] Question: Inventory levels and markdown risk - Management indicated that inventory levels were well managed, with comp store inventories down 2% and no major markdown liabilities heading into Q4 [32] Question: Health of low-income consumers - Management noted that stores in lower-income areas are outperforming the chain, indicating a potential trend of increased spending among this demographic [39] Question: Drivers of margin expansion in Q3 - Management detailed that margin expansion was driven by lower markdowns, faster inventory turns, and improved supply chain efficiencies [40] Question: Outlook for 2025 - Management provided a preliminary outlook for 2025, expecting modest margin expansion and high single-digit revenue growth driven by new store openings [46]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 2, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |---------------------------------------------------------------------------------------|-----------------------------------------------|------------------------------ ...

BURLINGTON, N.J., Nov. 26, 2024 (GLOBE NEWSWIRE) -- Burlington Stores, Inc. (NYSE: BURL), a nationally recognized off-price retailer of high-quality, branded apparel, footwear, accessories, and merchandise for the home at everyday low prices, announced today that Shira Goodman, former Chief Executive Officer of Staples, Inc., is joining its Board of Directors and its Audit Committee effective January 1, 2025. John Mahoney, Chairman of the Board, stated, “We are very pleased to welcome Shira to our Board as ...

Burlington Stores, Inc. (BURL) has reported third-quarter fiscal 2024 results, wherein sales lagged the Zacks Consensus Estimate and earnings beat the same. Also, top and bottom lines grew year over year. The company saw strong early third-quarter performance, but warmer weather in mid-September slowed sales momentum, particularly in cold-weather categories. Excluding these, comparable sales showed consistent growth with recent trends. Effective inventory and liquidity management drove improved margins and ...

A warmer-than-normal autumn wasn’t enough to stall sales growth for Burlington Stores.The off-price clothing retailer posted earnings Tuesday (Nov. 26) showing total sales up 11% for the third quarter (Q3), following 12% sales growth last year.Comparable sales — up 1% — were affected by “significantly warmer temperatures than last year,” CEO Michael O’Sullivan said during an earnings call.“At Burlington, we are particularly sensitive to warmer weather in Q3,” he told analysts. “Many shoppers still think of ...

Core Insights - Burlington Stores reported revenue of $2.53 billion for the quarter ended October 2024, reflecting a year-over-year increase of 10.5% [1] - The company's EPS was $1.55, up from $0.98 in the same quarter last year, indicating strong earnings growth [1] - Revenue fell short of the Zacks Consensus Estimate of $2.56 billion, resulting in a surprise of -1.23%, while EPS exceeded the consensus estimate of $1.54 by 0.65% [1] Financial Performance Metrics - Comparable Store Sales were reported at 1%, below the estimated 2.3% by analysts [3] - The number of stores at the end of the period was 1,103, surpassing the average estimate of 1,095 from four analysts [3] - Net Sales revenue was $2.53 billion, compared to the average estimate of $2.56 billion, marking a year-over-year change of +10.6% [3] - Other revenue was reported at $4.52 million, slightly below the average estimate of $4.83 million, representing a year-over-year decline of -3.2% [3] Stock Performance - Burlington Stores' shares have returned +15.2% over the past month, outperforming the Zacks S&P 500 composite's +3.2% change [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Burlington Stores (BURL) came out with quarterly earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.54 per share. This compares to earnings of $0.98 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.65%. A quarter ago, it was expected that this discount retailer would post earnings of $0.95 per share when it actually produced earnings of $1.20, delivering a surprise of 26.32%.Over the last four quarters, t ...

Sales Performance - Total sales increased by 11% to $2,526 million, with comparable store sales growth of 1%[3] - Net sales for the three months ended November 2024 were $2,526,174 thousand, a 10.6% increase compared to $2,284,673 thousand in the same period last year[25] - Total revenue for the nine months ended November 2024 reached $7,357,766 thousand, up 11.5% from $6,601,109 thousand in the prior year period[25] - For FY24, the company raised adjusted EPS guidance to $7.76-$7.96 and expects total sales growth of 9%-10%[2][11] - For Q4 FY24, the company expects total sales growth of 5%-7% and adjusted EPS in the range of $3.55-$3.75[12][13] Profitability and Earnings - Net income was $91 million, with diluted EPS of $1.40, and adjusted EPS increased by 41% to $1.55[2][5] - Adjusted EBIT margin increased by 80 basis points, driven by higher gross margin and leverage on supply chain expenses[3][5] - Gross margin rate improved by 70 basis points to 43.9%, with merchandise margin expanding by 50 basis points[5] - Adjusted EBITDA increased by 100 basis points to $229 million, and adjusted EBIT increased by 80 basis points to $141 million[5] - Net income for the nine months ended November 2024 was $242,871 thousand, a 116.5% increase compared to $112,191 thousand in the same period last year[25] - Diluted net income per common share for the nine months ended November 2024 was $3.77, up 117.9% from $1.73 in the prior year period[25] - Adjusted Net Income for the three months ended November 2, 2024 was $99.895 million, compared to $63.828 million for the same period in 2023[40] - Adjusted EPS for the three months ended November 2, 2024 was $1.55, compared to $0.98 for the same period in 2023[40] - Adjusted EBITDA for the three months ended November 2, 2024 was $228.786 million, compared to $175.563 million for the same period in 2023[40] - Net income for the nine months ended November 2, 2024 was $242.871 million, compared to $112.191 million for the same period in 2023[40] - Adjusted Net Income for the nine months ended November 2, 2024 was $264.195 million, compared to $157.698 million for the same period in 2023[40] - Adjusted EPS for the nine months ended November 2, 2024 was $4.10, compared to $2.43 for the same period in 2023[40] - Adjusted EBITDA for the nine months ended November 2, 2024 was $641.990 million, compared to $473.689 million for the same period in 2023[40] Inventory and Assets - Merchandise inventories increased by 8% to $1,441 million, while comparable store inventories decreased by 2%[7] - Merchandise inventories as of November 2, 2024 were $1,440,695 thousand, a 32.5% increase compared to $1,087,841 thousand at the beginning of the period[27] - Total assets as of November 2, 2024 were $8,442,860 thousand, a 9.5% increase from $7,706,840 thousand at the beginning of the period[27] Cash Flow and Capital Expenditures - Cash and cash equivalents as of November 2, 2024 were $857,800 thousand, a decrease of 7.3% from $925,359 thousand at the beginning of the period[27][30] - Net cash provided by operating activities for the nine months ended November 2024 was $320,212 thousand, an 18.5% increase compared to $270,196 thousand in the prior year period[31] - Cash paid for property and equipment for the nine months ended November 2024 was $527,065 thousand, a 73.1% increase compared to $304,442 thousand in the prior year period[31] - The company plans to open 101 net new stores and expects capital expenditures of approximately $750 million[11] Share Repurchase Program - The company repurchased 213,372 shares for $56 million, with $325 million remaining in the share repurchase program[10] Adjusted Metrics and Expenses - Adjusted SG&A for the three months ended November 2, 2024 was $679.995 million, compared to $622.735 million for the same period in 2023[40] - Adjusted Effective Tax Rate for the three months ended November 2, 2024 was 23.5%, compared to 25.0% for the same period in 2023[42] - Adjusted SG&A for the nine months ended November 2, 2024 was $1.986 billion, compared to $1.774 billion for the same period in 2023[40]

Total sales growth of 11% on top of 12% last yearComparable store sales growth of 1% on top of 6% last yearNet income was $91 million, and diluted EPS was $1.40 Excluding certain expenses associated with acquired BBBY leases: Adjusted EBIT margin increased 80 basis points Adjusted EPS increased 41% to $1.55 Adjusted EPS guidance for FY24 raised to $7.76-$7.96 BURLINGTON, N.J., Nov. 26, 2024 (GLOBE NEWSWIRE) -- Burlington Stores, Inc. (NYSE: BURL), a nationally recognized off-price retailer of high-quality ...