Latest news with #BurlingtonStores
Yahoo
30-05-2025
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Can Burlington's Profit Levers Deflect Tariff Impact? Analysts Weigh In
Burlington Stores, Inc. (NYSE:BURL) shares are trading slightly higher on Friday. On Thursday, the company reported first-quarter adjusted earnings per share of $1.60, beating the analyst consensus estimate of $1.41. Quarterly sales of $2.50 billion missed the Street view of $2.52 billion. The company's CEO, Michael O'Sullivan, stated that while tariffs are expected to significantly impact merchandise margins, he is confident the company can offset this pressure in other areas of the profit and loss statement, provided tariffs do not rise beyond current are the key analysts' views on the company: Telsey Advisory Group analyst Dana Telsey reiterated the Outperform rating on Burlington, lowering the price forecast from $340 to $300. In an analyst note, Telsey noted that acquiring prime retail locations remains a key part of Burlington's strategy to expand its footprint and draw in high-value customers, especially as consumers increasingly prioritize value. However, due to macroeconomic uncertainty and rising costs tied to acquiring leases from bankrupt retailers, Telsey lowered the firm's price forecast. She highlighted that Burlington is adjusting its strategy and staying agile in response to current conditions. While tariffs are creating short-term challenges, management believes it won't cause lasting structural shifts in the retail sector. The company's FY25 outlook factors in a 30% tariff on imports from China and 10% on goods from other countries. To reduce its reliance on China, Burlington is collaborating with vendors and sourcing more products already located in the U.S., Telsey noted. She added that the company has several levers across the cost of goods sold and SG&A to help offset higher costs and support profitability. BofA Securities analyst Lorraine Hutchinson maintained the Buy rating on the stock, with a price forecast of $350. According to Hutchinson, the increased order volatility driven by shifting tariffs could actually improve merchandise availability for the off-price sector. She noted that Burlington's direct sourcing exposure remains modest at 8%, mostly tied to categories like Home and gifting. The analyst has modeled a flat gross margin for the second quarter. She anticipates 60 basis points of pressure on gross margin in the second half of the year as tariffs begin to flow through. However, she suggested that mitigation strategies could offset this future pressure once Burlington and its vendors have had sufficient time to adjust their production processes and pricing structures. The company has also seen strong comp performance at higher price points, with customers responding well to elevated merchandise. Hutchinson stressed that this trend will continue, especially as more price-sensitive consumers shift toward value options in response to broader retail price increases from tariffs. Price Action: BURL shares are trading higher by 0.23% to $228.33 at last check Friday. Read Next:Photo via Shutterstock Date Firm Action From To Mar 2022 Truist Securities Maintains Buy Mar 2022 Morgan Stanley Maintains Overweight Mar 2022 Deutsche Bank Maintains Buy View More Analyst Ratings for BURL View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? BURLINGTON STORES (BURL): Free Stock Analysis Report This article Can Burlington's Profit Levers Deflect Tariff Impact? Analysts Weigh In originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
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30-05-2025
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BURL Q1 Earnings Call: Tariff Uncertainty and Flat Sales Shape 2025 Outlook
Off-price retail company Burlington Stores (NYSE:BURL) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 6% year on year to $2.50 billion. Its non-GAAP EPS of $1.60 per share was 12% above analysts' consensus estimates. Is now the time to buy BURL? Find out in our full research report (it's free). Revenue: $2.50 billion (6% year-on-year growth) Adjusted EPS: $1.60 vs analyst estimates of $1.43 (12% beat) Revenue Guidance for Q2 CY2025 is $2.61 billion at the midpoint, below analyst estimates of $2.65 billion Management reiterated its full-year Adjusted EPS guidance of $9 at the midpoint Operating Margin: 5.9%, in line with the same quarter last year Locations: 1,115 at quarter end, up from 1,021 in the same quarter last year Same-Store Sales were flat year on year (2% in the same quarter last year) Market Capitalization: $15.03 billion Burlington's first quarter results were shaped by a combination of external headwinds and internal cost management. Management emphasized that February's sales were negatively impacted by severe weather and delayed tax refunds, with CEO Michael O'Sullivan noting, 'the quarter started off slowly.' As conditions normalized, sales trends improved in March and April, but comparable store sales were flat overall. Despite the sluggish top-line growth, Burlington delivered higher adjusted earnings, which management attributed to aggressive pursuit of margin and expense savings, as well as favorable timing between quarters. CFO Kristin Wolfe highlighted that the company benefited from 'faster inventory turns' and strategic inventory purchases that positioned the business ahead of anticipated tariff impacts. Looking forward, Burlington's leadership reiterated its full-year adjusted EPS guidance but underscored heightened uncertainty surrounding tariffs and consumer spending. CEO Michael O'Sullivan explained that the volatility in U.S.-China tariffs could create both risks and opportunities, depending on merchandise supply and sourcing shifts. He stated, 'We see both risks and opportunities in the months ahead, and we are managing our business accordingly.' Management also pointed to macroeconomic risks, including the potential for rising inflation and recessionary pressures, which could weigh on Burlington's core customer. The company's 2025 outlook is contingent on tariffs remaining at current rates and the impact of inflation on lower-income shoppers remaining modest. Management attributed Burlington's Q1 margin outperformance to early cost-saving measures and flexible sourcing, while highlighting the complex and unpredictable impact of tariffs on both supply and consumer demand. Early margin and expense actions: In anticipation of potential tariff impacts, Burlington began aggressively targeting cost savings across its profit and loss statement at the start of the quarter, capturing benefits in supply chain efficiencies, store productivity, and other SG&A (selling, general, and administrative) expenses. Merchandise sourcing flexibility: The company leveraged its ability to source from thousands of vendors and shifted away from categories more exposed to Chinese imports when necessary. Management noted that Burlington directly imports a small portion of its products, allowing nimble responses to shifting tariff regimes. Reserve inventory strategy: Burlington significantly increased its reserve inventory—goods purchased ahead of tariff implementation and stored for future use. CFO Kristin Wolfe described these as 'highly branded' items, which did not incur tariffs and are intended to be released during key selling seasons. Evolving store experience: Roughly half of Burlington's locations have been converted to the Store Experience 2.0 layout, which management believes enhances customer engagement and supports the company's value-focused marketing message. The rollout is expected to be completed by the end of 2026. New store pipeline strength: The company remains committed to opening 100 net new stores in 2025 and has added 46 former JOANN's Fabrics locations to its 2026 pipeline, reflecting management's optimism about market share expansion as competitors exit physical retail. Burlington's outlook is driven by its ability to navigate tariff-related volatility, sustain cost discipline, and adapt to fluctuating consumer demand. Tariff and sourcing risks: Management warned that ongoing changes in U.S.-China tariffs could disrupt the flow of merchandise, impacting both supply and margins. The company's ability to shift sourcing and manage inventory will be key to mitigating any negative effects if tariffs increase or remain unstable. Consumer sensitivity to inflation: The company's core lower-income customer base is highly sensitive to inflation and changes in discretionary income. Management stated that a significant rise in inflation, possibly triggered by tariffs, could pressure sales trends even if Burlington maintains its own low prices. Store expansion and modernization: Burlington's growth strategy relies on the continued rollout of new stores and the Store Experience 2.0 format. The timely opening and performance of new locations, including those acquired from JOANN's, are expected to contribute to both revenue growth and market share gains. In the coming quarters, the StockStory team will monitor (1) how Burlington manages tariff-driven supply chain volatility and its impact on merchandise margins, (2) the pace and performance of new store openings, especially those from the JOANN's acquisition, and (3) shifts in consumer demand as inflation and macroeconomic pressures evolve. Execution on merchandising and cost initiatives will also be critical in this uncertain environment. Burlington currently trades at a forward P/E ratio of 23.8×. In the wake of earnings, is it a buy or sell? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
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Morning Movers: Stocks jump as court blocks tariffs, Nvidia strong again
Stock market futures are rallying, buoyed by a federal court ruling that blocked several of President Donald Trump's import tariffs. This decision has lifted investor sentiment while Nvidia's first-quarter earnings report further fueled market optimism. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter In other corporate news, Tesla shares rose over 2% after CEO Elon Musk announced he would step down from his government role at the Department of Government Efficiency to refocus on his companies. Commodity markets are reacting to the tariff news as well. Oil prices advanced alongside equity markets after the U.S. trade court's decision, with expectations of increased demand and reduced trade barriers. Gold remains steady, while silver prices are on the rise, supported by technical factors and a weaker dollar . In the cryptocurrency market, Bitcoin is trading near $109,000. In pre-market trading, S&P 500 futures rose 0.76%, Nasdaq futures rose 1.27% and Dow futures rose 0.18%. Check out this morning's top movers from around Wall Street, compiled by The Fly. UP AFTER EARNINGS – Burlington Stores (BURL) up 7% Kohl's (KSS) up 6% Futu Holdings (FUTU) up 6% Alarum (ALAR) up 6% CIBC (CM) up 3% Heico (HEI) up 1% Veeva (VEEV) up 13% Nvidia (NVDA) up 5% DOWN AFTER EARNINGS – American Woodmark (AMWD) up 3% Hormel Foods (HRL) down 2% Best Buy (BBY) down 2% LiAuto (LI) down 1% HP Inc. (HPQ) down 8% Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on BURL: Disclaimer & DisclosureReport an Issue Burlington Stores: Strong Earnings and Strategic Positioning Justify Buy Rating Despite Short-Term Challenges Burlington Stores CEO says 'environment has become more uncertain since March' Burlington Stores reports Q1 adjusted EPS $1.67, consensus $1.43 Burlington Stores backs FY25 adjusted EPS view $8.70-$9.30, consensus $9.26 Burlington Stores sees Q2 adjusted EPS $1.20-$1.30, consensus $1.35 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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29-05-2025
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BURL's Q1 Earnings Top Estimates, Comparable Store Sales Flat Y/Y
Burlington Stores, Inc. BURL has reported first-quarter fiscal 2025 results, wherein revenues and earnings grew year over year. While the top line missed the Zacks Consensus Estimate, the bottom line beat. Burlington Stores achieved higher sales year over year in the first quarter, driven by effective merchandising, supply-chain improvements and store-expansion efforts. Earnings exceeded expectations, supported by higher sales, margins and operational efficiencies. In the past three months, this Zacks Rank #3 (Hold) company has lost 3.6% compared with the industry's 2% decline. Burlington Stores reported adjusted earnings of $1.60 per share, which surpassed the Zacks Consensus Estimate of $1.42. The bottom line rose 18.5% from $1.35 per share in the year-ago quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)Total revenues of $2,504 million jumped 6% from the prior-year quarter but came below the Zacks Consensus Estimate of $2,534 million. Net sales climbed 6.1% to $2,500.1 million while other revenues fell 7.1% to $3.9 million. The company's comparable store sales remained flat year over year. Our model had anticipated flat comparable store sales for the fiscal first quarter. Burlington Stores, Inc. price-consensus-eps-surprise-chart | Burlington Stores, Inc. Quote The gross margin was 43.8%, up 30 basis points (bps) from first-quarter fiscal 2024. This also surpassed our estimate of a gross margin of 43.5%. The merchandise margin increased 20 bps and freight expenses, as a percentage of net sales, improved 10 bps year over selling, general and administrative (SG&A) expenses rose 4.8% year over year to $669.5 million. Adjusted SG&A expenses, as a percentage of net sales, were 26.8%, down 30 bps from first-quarter fiscal 2024. We estimated adjusted SG&A expenses, as a percentage of net sales, to be 26.7%. Product sourcing costs were $197 million, up from $183 million in the year-ago quarter. Such costs comprise the processing goods costs via its supply chain and buying EBITDA increased 12.6% from the first quarter of fiscal 2024 to $238.1 million, excluding $6 million of expenses in each period related to the bankruptcy acquired leases. Adjusted EBIT was $146.3 million, up 13.1% from the year-ago quarter. The company ended the reported quarter with cash and cash equivalents of $371.1 million, long-term debt of $1.64 billion and stockholders' equity of $1.35 billion. BURL exited the fiscal first quarter with $1.12 billion of liquidity, including $371 million of unrestricted cash and $748 million available under its ABL Stores ended the quarter with $1.65 billion of outstanding total debt, comprising $1.24 billion under its term-loan facility, $297 million of convertible notes and $100 million of borrowings under its ABL company bought back 445,285 shares for $105 million under its share repurchase plan in the fiscal first quarter. As of May 3, 2025, BURL had $158 million remaining under its existing share repurchase authorization. On May 20, 2025, the company's board authorized repurchasing up to an additional $500 million of its common stock, which will be executed through May 2027. Management cited that tariffs are likely to put immense pressure on the company's merchandise margin. However, it is confident about tackling this pressure if tariffs do not rise from the existing levels. BURL is on track to accomplish its original guidance. Also, the off-price model is well-positioned to navigate a dynamic the second quarter of fiscal 2025, the company expects total sales to grow in the band of 5-7%, with comparable store sales expected to remain between flat and up 2% compared with the second quarter of fiscal 2024. The adjusted EBIT margin is projected in the range of down 30 bps to flat year over year, excluding about $11 million of expected expenses related to bankruptcy-acquired leases in the fiscal second quarter. Favorable timing of expenses is likely to adversely impact adjusted earnings per share (EPS) are expected to be between $1.20 and $1.30 compared with $1.24 earned in the prior-year quarter. The EPS view excludes $8 million, net of tax, of planned expenses connected with bankruptcy-acquired leases in the second quarter of fiscal 2025. Management expects an effective tax rate of almost 24%. For fiscal 2025, the company continues to expect total sales to increase in the band of 6-8% year over year. This projection assumes comparable store sales will rise between 0% and 2%. BURL recorded sales growth of 11% and comparable store sales increase of 4% in fiscal 2024. Capital expenditures, net of landlord allowances, are expected to be approximately $950 million. Depreciation and amortization are likely to be $385 million, while net interest expenses are projected to be $57 million. Management forecasts an adjusted effective tax rate of about 25% for the current fiscal year. The company plans to open around 100 net stores. The adjusted EBIT margin is expected to improve 0-30 basis points from the previous fiscal year, excluding $33 million of planned costs with respect to the bankruptcy-acquired leases in fiscal 2025. Adjusted EPS is still projected between $8.70 and $9.30, higher than $8.35 earned in the prior fiscal year. This excludes $25 million, net of tax, of expected expenses related to bankruptcy-acquired leases in fiscal 2025 and assumes a count of roughly 64 million shares. Some better-ranked stocks are Urban Outfitters URBN, Canada Goose GOOS and Genesco Outfitters, a lifestyle specialty retailer offering apparel and accessories, sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Urban Outfitters' current financial-year's earnings and sales implies growth of 20.9% and 8%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 29%.Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank #2 (Buy) at Zacks Consensus Estimate for Canada Goose's current financial-year's earnings and sales implies growth of 10% and 2.9%, respectively, from the year-ago actuals. GOOS delivered a trailing four-quarter average earnings surprise of 57.2%.Genesco, a branded company that sells footwear and accessories, currently has a Zacks Rank of Zacks Consensus Estimate for GCO's current financial-year's earnings and sales implies growth of 63.8% and 0.6%, respectively, from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 37.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Genesco Inc. (GCO) : Free Stock Analysis Report Burlington Stores, Inc. (BURL) : Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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29-05-2025
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Compared to Estimates, Burlington Stores (BURL) Q1 Earnings: A Look at Key Metrics
For the quarter ended April 2025, Burlington Stores (BURL) reported revenue of $2.5 billion, up 6% over the same period last year. EPS came in at $1.60, compared to $1.42 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $2.53 billion, representing a surprise of -1.19%. The company delivered an EPS surprise of +12.68%, with the consensus EPS estimate being $1.42. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Burlington Stores performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Stores at period end: 1,115 versus 1,115 estimated by four analysts on average. Revenues- Net Sales: $2.50 billion compared to the $2.52 billion average estimate based on four analysts. The reported number represents a change of +6.1% year over year. Revenues- Other revenue: $3.95 million versus $4.18 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -6.9% change. View all Key Company Metrics for Burlington Stores here>>>Shares of Burlington Stores have returned +6% over the past month versus the Zacks S&P 500 composite's +6.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Burlington Stores, Inc. (BURL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
