Burlington Stores (NYSE:BURL) shares rose Thursday after the company reported better-than-expected results for the fiscal second quarter and delivered an upbeat guidance.
The company reported Q2 earnings per share (EPS) of $1.20, topping analyst estimates of $0.95. Revenue stood at $2.46 billion in the quarter, also above the consensus projection of $2.41 billion.
Burlington’s gross margin rose to 42.8% in Q2, up from 41.7% in the year-ago period and ahead of the 42.5% expected by analysts.
“We are pleased with our results from the second quarter. Comparable store sales increased 5%, while total sales increased 13%. Both of these metrics were well ahead of our expectations,” said Michael O’Sullivan, CEO of Burlington Stores.
BURL stock rose around 3% in the Thursday premarket trade.
“We saw very strong margin improvement and earnings growth during the second quarter," O'Sullivan continued.
“This strong performance was driven by the ahead of plan sales, as well as a significant increase in gross margin, and faster than expected progress in our supply chain efficiency initiatives.”
For the full fiscal 2024, Burlington Stores expects EPS in the range of $7.66 to $7.96, compared to the consensus of $7.69.
The company anticipates total sales growth of 9% to 10%, following a 10% increase for the 52 weeks ending January 27, 2024. This projection assumes comparable store sales will rise by 2% to 3%, building on the 4% increase for the previous year.
Burlington also plans to open approximately 100 net new stores and expects its adjusted EBIT margin to improve by 50 to 70 basis points compared to the prior 52-week period.
For Q3 2024, the company forecasts EPS between $1.45 and $1.55, surpassing the consensus estimate of $1.36.
It projects total sales growth of 10% to 12%, with comparable store sales expected to increase by 0% to 2% compared to Q3 of 2023, while analysts expected a 2.27% growth.
The adjusted EBIT margin is anticipated to rise by 60 to 80 basis points compared to the same quarter last year.