Burlington Stores: EPS Soars 12%

Core Insights - Burlington Stores reported strong fourth-quarter earnings for 2024, with adjusted EPS of $4.13, surpassing expectations of $3.77, and revenue of $3.28 billion, exceeding the estimate of $3.24 billion [1][6][3] Financial Performance - Adjusted EPS increased by 12% year-over-year from $3.69 in Q4 2023 to $4.13 in Q4 2024 [3][6] - Revenue grew by 4.8% year-over-year from $3.13 billion in Q4 2023 to $3.28 billion in Q4 2024 [3][6] - Comparable store sales saw a significant increase of 6%, exceeding the guidance of 0% to 2% [6][7] - Adjusted EBIT margin improved to 11.0%, up 0.6 percentage points from the previous year [3][7] Business Strategy - Burlington's business model focuses on offering high-quality, brand-name products at discounted prices, attracting value-conscious consumers [4] - The company has prioritized expanding store locations and enhancing supply chain efficiencies, with 101 net new stores added in 2024, increasing total locations by 10% to 1,108 [5][11] - Efficient inventory management is highlighted, with a 15% increase in current period merchandise inventories and a 3% decrease in comparable store inventories [9] Market Position and Outlook - Burlington anticipates continued growth in 2025, projecting total sales growth between 6% and 8% and adjusted EPS in the range of $8.70 to $9.30 [10] - The company plans to open approximately 100 net new stores in the upcoming year, supporting its long-term goal of reaching 2,000 locations [11] - Management is focused on leveraging its off-price model to sustain growth amid competitive retail sector challenges and potential economic uncertainties [12]