Burlington Stores(BURL) ZACKS·2025-05-19 13:06Core Insights - Burlington Stores, Inc. (BURL) shares are currently trading 10% below their 52-week high of 268.99, trading above its 50-day and 200-day simple moving averages of 260.39, indicating a continued uptrend and positive market sentiment [3] - The stock is currently valued at a low price-to-sales (P/S) multiple of 1.44, below the industry average of 1.88 and the sector average of 1.59, suggesting potential for attractive entry points for investors [6] Strategic Initiatives - The implementation of the Burlington 2.0 model has improved operational performance and customer experience by focusing on a curated selection of well-known national brands and premium private labels [9] - Burlington's adaptable merchandising strategy has enhanced responsiveness to market conditions, allowing the company to capitalize on seasonal shopping trends [10] Expansion and Growth Prospects - In fiscal 2024, Burlington opened a net total of 101 new locations, exceeding its store growth targets, with plans to open at least 100 net new stores annually in fiscal 2025 and 2026 [11] - The company has secured prime retail spaces vacated by other retailers, broadening its national footprint and positioning itself to capture a larger share of the off-price retail market [12] Financial Outlook - Burlington forecasts total sales growth of 6% to 8% for fiscal 2025, driven by store openings and a projected flat to 2% increase in comparable store sales [13] - Adjusted earnings per share are projected between 9.30, indicating growth from the 8.35 reported in fiscal 2024 [14] Cost Challenges - Adjusted selling, general, and administrative (SG&A) expenses rose 4% year over year in the fiscal fourth quarter, reaching 745.6 million, influenced by higher incentive compensation and increased advertising spending [15] - Product sourcing costs increased to 210 million in the previous year, impacting overall operational efficiency [16]