Burlington Stores Slides 8% Post-Earnings Despite Strong Q1 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: seekingalpha
- Strong Earnings Performance: Burlington reported Q1 sales of $2.86 billion, a 14.4% year-over-year increase that exceeded estimates by $60 million, resulting in earnings per share rising from $1.67 to $2.10, showcasing robust growth.
- Upgraded Annual Outlook: The company raised its full-year sales growth forecast from 8%-10% to 9%-11%, while comparable store sales expectations increased from 1%-3% to 2%-4%, reflecting confidence in future performance.
- Market Reaction Volatility: Despite an initial 3.4% rise to a one-month high post-earnings, management's cautious comments during the earnings call regarding economic conditions led to an 8% drop in stock price as investors took profits.
- Consumer Environment Monitoring: CEO O’Sullivan noted that while tighter consumer conditions could benefit discount retailers, the company remains cautious about the potential impacts of high gas prices and inflation, emphasizing close monitoring of market trends.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy BURL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on BURL
Wall Street analysts forecast BURL stock price to rise
18 Analyst Rating
13 Buy
5 Hold
0 Sell
Moderate Buy
Current: 300.520
Low
310.00
Averages
334.62
High
363.00
Current: 300.520
Low
310.00
Averages
334.62
High
363.00
About BURL
Burlington Stores, Inc. is an off-price retailer of branded merchandise at everyday low prices. The Company’s stores offer an extensive selection of in-season, fashion-focused merchandise, including women’s ready-to-wear apparel, menswear, youth apparel, baby, beauty, footwear, accessories, home, toys, gifts and coats. Its broad selection provides a wide range of apparel, accessories and furnishings for all ages. It sells a broad selection of merchandise acquired directly from manufacturers and other suppliers. It has six distribution centers. Its three east coast distribution centers are located in Edgewater Park, New Jersey; Burlington, New Jersey; and Logan, New Jersey. Its three west coast distribution centers are located in San Bernardino, California, Redlands, California, and Riverside, California. These six distribution centers occupy an aggregate of 5,135,000 square feet, and each includes processing, shipping and storage capabilities. It operates in about 1,108 stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Burlington Stores Slides 8% Post-Earnings Despite Strong Q1 Results
- Strong Earnings Performance: Burlington reported Q1 sales of $2.86 billion, a 14.4% year-over-year increase that exceeded estimates by $60 million, resulting in earnings per share rising from $1.67 to $2.10, showcasing robust growth.
- Upgraded Annual Outlook: The company raised its full-year sales growth forecast from 8%-10% to 9%-11%, while comparable store sales expectations increased from 1%-3% to 2%-4%, reflecting confidence in future performance.
- Market Reaction Volatility: Despite an initial 3.4% rise to a one-month high post-earnings, management's cautious comments during the earnings call regarding economic conditions led to an 8% drop in stock price as investors took profits.
- Consumer Environment Monitoring: CEO O’Sullivan noted that while tighter consumer conditions could benefit discount retailers, the company remains cautious about the potential impacts of high gas prices and inflation, emphasizing close monitoring of market trends.
See More
Burlington Stores Reports Strong Q1 2026 Earnings Growth
- Significant Earnings Growth: Burlington Stores reported a 26% increase in Q1 2026 earnings per share (EPS) to $2.10, exceeding the guidance range of $1.60 to $1.75, indicating strong performance and profitability in the market.
- Robust Sales Performance: Total sales grew by 14% in Q1, with comparable store sales rising 6%, significantly above the company's initial guidance of 2% to 4%, reflecting strong demand in ladies' apparel, beauty, and accessories, thereby reinforcing market position.
- Margin Improvement: The gross margin rate for Q1 reached 44.1%, an increase of 30 basis points year-over-year, primarily driven by higher merchandise margins and reduced freight costs, showcasing the company's success in cost control and supply chain efficiency.
- Optimistic Outlook: Management raised the full-year 2026 comparable sales growth forecast to 2% to 4% and expects EPS growth of 13% to 16%, demonstrating confidence in future market performance, particularly in the second half of the year.
See More
IBM to Invest Over $10 Billion in Quantum Computing
- Quantum Computing Investment: IBM disclosed in a regulatory filing that it will invest over $10 billion in quantum computing over the next five years, a move expected to enhance the company's competitiveness in cutting-edge technology and solidify its market leadership.
- Chipmaker Stock Surge: Arm Holdings' shares jumped over 15% after Mizuho raised its price target from $290 to $360, anticipating strong growth from internal CPU demand in 2027, which boosts market confidence in its future performance.
- Rail Merger Halted: Shares of Norfolk Southern and Union Pacific fell about 4% after the Surface Transportation Board halted its review of the proposed $71.5 billion merger, indicating regulatory concerns that could impact future market consolidation.
- Cloud Platform Performance: Snowflake's stock soared 37%, with expectations for a second-quarter adjusted operating margin of 12.5%, exceeding analysts' forecast of 11.9%, demonstrating its strong growth potential in the cloud computing market.
See More
Burlington Stores Raises Fiscal 2026 Earnings Guidance
- Optimistic Earnings Outlook: Burlington Stores expects adjusted earnings per share for Q2 FY2026 to reach between $2.05 and $2.20, significantly up from $1.72 in Q2 FY2025, indicating strong financial performance.
- Sales Growth Expectations: The company anticipates total sales growth of 10% to 12% for Q2 FY2026, compared to $2.701 billion in sales for FY2025, showcasing ongoing market demand and business expansion potential.
- Annual Guidance Upgrade: Burlington Stores has raised its adjusted earnings per share forecast for FY2026 to between $11.45 and $11.80, up from the previous range of $10.95 to $11.45, reflecting increased confidence in future performance.
- Revised Sales Growth Forecast: The company has also adjusted its total sales growth forecast for FY2026 from 8%-10% to 9%-11%, highlighting its proactive performance and strategic adjustments in a competitive market.
See More
Burlington Stores Reports Q1 Income Growth and Raises 2026 Outlook
- Net Income Growth: Burlington Stores reported a net income of $114.74 million for Q1, up 13.7% from $100.83 million last year, indicating strong performance in the retail market and boosting investor confidence.
- Earnings Per Share Increase: Adjusted earnings per share rose to $2.01 from $1.60 last year, reflecting the company's success in enhancing profitability, which is likely to attract more investor interest.
- Sales Growth Forecast Raised: The company raised its fiscal 2026 total sales growth forecast to 9%-11% from 8%-10%, and comparable store sales growth guidance to 2%-4% from 1%-3%, demonstrating optimism about future performance.
- Q2 Outlook: Burlington Stores expects total sales growth of 10%-12% for Q2, with comparable store sales growth of 1%-3%, and anticipates adjusted earnings per share between $2.05 and $2.20, further solidifying market confidence in its ongoing growth.
See More
Significant Stock Movements for Multiple Companies
- Dollar Tree Earnings Beat: Dollar Tree reported adjusted earnings of $1.74 per share for Q1, exceeding analyst expectations of $1.53, leading to an over 11% stock surge, while the partnership with DoorDash enhances its competitive edge through on-demand delivery.
- Salesforce Guidance Adjustment: Salesforce guided for current-quarter revenue between $11.27 billion and $11.35 billion, falling short of the $11.36 billion expected by analysts, resulting in a 1% stock decline; however, the raised full-year earnings guidance indicates confidence in future growth.
- Agilent Raises Earnings Outlook: Agilent Technologies increased its full-year adjusted earnings guidance to between $6 and $6.10 per share, surpassing previous estimates of $5.90 to $6.04, causing a 9% stock increase that reflects strong performance in the healthcare equipment sector.
- Snowflake Soars: Snowflake plans to invest $6 billion in Amazon Web Services over five years and reported Q1 adjusted earnings of $0.39 per share and revenue of $1.39 billion, both exceeding market expectations, resulting in a nearly 37% stock increase.
See More
Burlington Stores Slides 8% Post-Earnings Despite Strong Q1 Results
- Strong Earnings Performance: Burlington reported Q1 sales of $2.86 billion, a 14.4% year-over-year increase that exceeded estimates by $60 million, resulting in earnings per share rising from $1.67 to $2.10, showcasing robust growth.
- Upgraded Annual Outlook: The company raised its full-year sales growth forecast from 8%-10% to 9%-11%, while comparable store sales expectations increased from 1%-3% to 2%-4%, reflecting confidence in future performance.
- Market Reaction Volatility: Despite an initial 3.4% rise to a one-month high post-earnings, management's cautious comments during the earnings call regarding economic conditions led to an 8% drop in stock price as investors took profits.
- Consumer Environment Monitoring: CEO O’Sullivan noted that while tighter consumer conditions could benefit discount retailers, the company remains cautious about the potential impacts of high gas prices and inflation, emphasizing close monitoring of market trends.
See More
Burlington Stores Reports Strong Q1 2026 Earnings Growth
- Significant Earnings Growth: Burlington Stores reported a 26% increase in Q1 2026 earnings per share (EPS) to $2.10, exceeding the guidance range of $1.60 to $1.75, indicating strong performance and profitability in the market.
- Robust Sales Performance: Total sales grew by 14% in Q1, with comparable store sales rising 6%, significantly above the company's initial guidance of 2% to 4%, reflecting strong demand in ladies' apparel, beauty, and accessories, thereby reinforcing market position.
- Margin Improvement: The gross margin rate for Q1 reached 44.1%, an increase of 30 basis points year-over-year, primarily driven by higher merchandise margins and reduced freight costs, showcasing the company's success in cost control and supply chain efficiency.
- Optimistic Outlook: Management raised the full-year 2026 comparable sales growth forecast to 2% to 4% and expects EPS growth of 13% to 16%, demonstrating confidence in future market performance, particularly in the second half of the year.
See More
IBM to Invest Over $10 Billion in Quantum Computing
- Quantum Computing Investment: IBM disclosed in a regulatory filing that it will invest over $10 billion in quantum computing over the next five years, a move expected to enhance the company's competitiveness in cutting-edge technology and solidify its market leadership.
- Chipmaker Stock Surge: Arm Holdings' shares jumped over 15% after Mizuho raised its price target from $290 to $360, anticipating strong growth from internal CPU demand in 2027, which boosts market confidence in its future performance.
- Rail Merger Halted: Shares of Norfolk Southern and Union Pacific fell about 4% after the Surface Transportation Board halted its review of the proposed $71.5 billion merger, indicating regulatory concerns that could impact future market consolidation.
- Cloud Platform Performance: Snowflake's stock soared 37%, with expectations for a second-quarter adjusted operating margin of 12.5%, exceeding analysts' forecast of 11.9%, demonstrating its strong growth potential in the cloud computing market.
See More
Burlington Stores Raises Fiscal 2026 Earnings Guidance
- Optimistic Earnings Outlook: Burlington Stores expects adjusted earnings per share for Q2 FY2026 to reach between $2.05 and $2.20, significantly up from $1.72 in Q2 FY2025, indicating strong financial performance.
- Sales Growth Expectations: The company anticipates total sales growth of 10% to 12% for Q2 FY2026, compared to $2.701 billion in sales for FY2025, showcasing ongoing market demand and business expansion potential.
- Annual Guidance Upgrade: Burlington Stores has raised its adjusted earnings per share forecast for FY2026 to between $11.45 and $11.80, up from the previous range of $10.95 to $11.45, reflecting increased confidence in future performance.
- Revised Sales Growth Forecast: The company has also adjusted its total sales growth forecast for FY2026 from 8%-10% to 9%-11%, highlighting its proactive performance and strategic adjustments in a competitive market.
See More
Burlington Stores Reports Q1 Income Growth and Raises 2026 Outlook
- Net Income Growth: Burlington Stores reported a net income of $114.74 million for Q1, up 13.7% from $100.83 million last year, indicating strong performance in the retail market and boosting investor confidence.
- Earnings Per Share Increase: Adjusted earnings per share rose to $2.01 from $1.60 last year, reflecting the company's success in enhancing profitability, which is likely to attract more investor interest.
- Sales Growth Forecast Raised: The company raised its fiscal 2026 total sales growth forecast to 9%-11% from 8%-10%, and comparable store sales growth guidance to 2%-4% from 1%-3%, demonstrating optimism about future performance.
- Q2 Outlook: Burlington Stores expects total sales growth of 10%-12% for Q2, with comparable store sales growth of 1%-3%, and anticipates adjusted earnings per share between $2.05 and $2.20, further solidifying market confidence in its ongoing growth.
See More
Significant Stock Movements for Multiple Companies
- Dollar Tree Earnings Beat: Dollar Tree reported adjusted earnings of $1.74 per share for Q1, exceeding analyst expectations of $1.53, leading to an over 11% stock surge, while the partnership with DoorDash enhances its competitive edge through on-demand delivery.
- Salesforce Guidance Adjustment: Salesforce guided for current-quarter revenue between $11.27 billion and $11.35 billion, falling short of the $11.36 billion expected by analysts, resulting in a 1% stock decline; however, the raised full-year earnings guidance indicates confidence in future growth.
- Agilent Raises Earnings Outlook: Agilent Technologies increased its full-year adjusted earnings guidance to between $6 and $6.10 per share, surpassing previous estimates of $5.90 to $6.04, causing a 9% stock increase that reflects strong performance in the healthcare equipment sector.
- Snowflake Soars: Snowflake plans to invest $6 billion in Amazon Web Services over five years and reported Q1 adjusted earnings of $0.39 per share and revenue of $1.39 billion, both exceeding market expectations, resulting in a nearly 37% stock increase.
See More
