Burlington Stores (BURL) Surpasses Expectations with a 25% Increase in Adjusted EPS
Burlington Stores Inc. reported robust fourth-quarter results, exceeding expectations with an adjusted EPS of $3.69.
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Burlington Stores Inc. (NYSE: BURL), a nationally recognized off-price retailer, reported robust results for the fourth quarter and full fiscal year 2023, surpassing expectations and showcasing a strong financial outlook.
Burlington Stores Inc. showcased a remarkable performance in the fourth quarter of 2023, with total sales increasing by 14% on a GAAP 14-week basis, net income reaching $227 million, and diluted EPS at $3.53. On a non-GAAP 13-week basis, notable achievements include a 2% increase in comparable store sales, surpassing the -2% to 0% guidance, and a significant 110 basis point increase in adjusted EBIT margin, well over the anticipated 0 to 40 basis points. The adjusted EPS saw a 25% increase to $3.69, far exceeding the forecasted range of $3.10 to $3.25.
Performance Against Expectations
Compared to expectations, Burlington Stores significantly outperformed with its fourth-quarter results. Analysts had forecasted an EPS of $3.3 and revenue expectations of $3.06 billion. The company surpassed these expectations with an adjusted EPS of $3.69 and demonstrated robust sales growth, with total sales reaching $3.121 billion on a 14-week GAAP basis. These results highlight Burlington’s strong operational execution and market positioning, even in a competitive retail landscape.
Guidance
Burlington Stores has set an optimistic outlook for fiscal year 2024. The company forecasts an adjusted EPS range of $7.00 to $7.60, indicating a 12% to 22% increase over the fiscal year 2023 on a 52-week basis. This guidance reflects Burlington’s confidence in its business strategy and ability to navigate market uncertainties. The projected growth factors are the potential impacts from the acquisition of Bed Bath & Beyond leases, excluding certain related expenses.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
