Burlington Stores Q3 Profit Up, Adj. EPS Misses Estimates; Issues Q4 View; Updates FY22 Outlook

Economy

Department store retailer Burlington Stores, Inc. (BURL) reported Tuesday that third-quarter net income was $16.78 million or $0.26 per share, higher than last year’s $13.62 million or $0.20 per share.

Adjusted net income was $28 million or $0.43 per share, compared to $93 million or $1.36 per share a year ago.

On average, 17 analysts polled by Thomson Reuters expected earnings of $0.52 per share for the quarter. Analysts’ estimates typically exclude special items.

Total revenues declined to $2.040 billion from $2.304 billion last year. Total net sales decreased 11 percent to $2.036 billion from $2.300 billion a year earlier.

Analysts estimated revenues of $2.07 billion for the quarter.

Comparable store sales decreased 17 percent on top of a 16 percent increase in the prior year.

Looking ahead for the fourth quarter, the company projects adjusted earnings per share in the range of $2.45 to $2.75, as compared to last year’s $1.80 on a reported basis and $2.53 on an adjusted basis.

Analysts expect earnings of $2.61 per share for the quarter.

Comparable store sales for the quarter is expected to decrease 9 percent to 6 percent.

Further, for fiscal 2023, the company now expects adjusted earnings per share to be in the range of $3.77 to $4.07, as compared to last year’s $6.00 on a reported basis and $8.41 on an adjusted basis. Analysts expect earnings of $4 per share for the year.

For the full year 2022, Burlington Stores previously expected adjusted earnings per share in the range of $3.70 to $4.30.

Comparable store sales for the year are now expected to decrease in the range of down 15 percent to down 14 percent for fiscal 2022, on top of the 15 percent increase during Fiscal 2021.

Previously, the company expected comparable store sales would decrease in the range of down 15 percent to down 13 percent for fiscal 2022.

Looking further ahead, Michael O’Sullivan, CEO, said, “While we acknowledge that there are risks and uncertainties, we think the outlook for 2023 is very positive. We anticipate that the economic and competitive environment could set up very well for off-price. We also recognize that we will be lapping our own execution mistakes and under-performance from 2022. Based on these factors we believe that we can start to drive significant sales, margin, and earnings recovery next year.”

In pre-market activity on the NYSE, Burlington Stores shares were gaining around 4.1 percent to trade at $164.12.

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