Loading...
01/11 16:23
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reflects a mixed outlook. While there are positive elements such as a share repurchase program, improved margins, and strong EPS growth, there are concerns about decelerating comp sales growth, potential macroeconomic impacts, and supply chain challenges. The guidance for 2025 shows moderate growth expectations, but the uncertainty regarding tariffs and economic conditions could offset these positives. Given the balanced nature of these factors, a neutral stock price reaction is anticipated over the next two weeks.
Total Sales $1.1 billion, up 6% year-over-year; growth attributed to improved sales trends in March and April after a slow start in February.
Comp Sales Flat year-over-year; previous year had 2% growth, indicating a deceleration in sales trends.
EBIT Margin 6.1%, up 30 basis points year-over-year; increase due to timing favorability and aggressive margin and expense savings initiatives.
Adjusted EPS $1.67, up 18% year-over-year; driven by favorable timing of expenses and cost-saving measures.
Gross Margin Rate 43.8%, up 30 basis points year-over-year; increase driven by a 20 basis point rise in merchandise margin and a 10 basis point decrease in freight expense.
Product Sourcing Costs $197 million, up from $183 million year-over-year; increase attributed to higher asset protection investments.
Adjusted SG&A Costs Decreased 30 basis points year-over-year; leverage achieved through timing of expenses and cost-saving measures.
Reserve Inventory Up 31% year-over-year; reflects proactive purchasing to mitigate tariff impacts.
Total Liquidity $1.1 billion, consisting of $371 million in cash and $748 million in availability on ABL.
Share Repurchase $105 million in common stock purchased during the quarter; $158 million remaining on authorization.
Store Count 1,115 stores at the end of the quarter; included 7 net new stores opened.
New Store Openings: Burlington plans to open 100 net new stores in 2025, with 7 new stores opened in Q1.
Acquisition of Leases: Burlington acquired 46 leases from the bankruptcy process of JOANN’s Fabrics, adding to their 2026 pipeline.
EBIT Margin: Q1 EBIT margin increased by 30 basis points to 6.1%.
Adjusted EPS: Q1 adjusted EPS was $1.67, an 18% increase from the previous year.
Inventory Management: Comparable SOAR inventories were down 8% year-over-year, with reserve inventory up 31%.
Merchandising 2.0: Burlington is implementing new systems and processes to enhance agility in response to market changes.
Sales Guidance: Sales guidance for 2025 remains unchanged, with total sales growth expected between 6% to 8%.
Tariffs Impact: The potential impact of tariffs is complex and carries greater risk than other types of disruption. The tariffs announced in April effectively shut down the flow of merchandise from China, leading to potential shortages in some categories and excess supply in others.
Consumer Spending: There is a deceleration in comp sales growth, with concerns about a broader pullback in consumer spending. Macroeconomic indicators suggest a higher probability of a recession and inflation concerns.
Supply Chain Challenges: The volatility in imports due to tariffs may lead to increased ocean freight expenses and affect the supply chain dynamics, creating uncertainty in merchandise availability.
Economic Factors: Many economists have raised recession probability estimates, which could negatively impact consumer spending and retail sales trends.
Regulatory Issues: The company’s guidance is contingent on current tariff rates not increasing and the inflationary impact of tariffs being modest.
Merchandising 2.0: New systems, processes, and tools rolled out to enable buyers and planners to respond effectively to changes in the external environment.
Store Expansion: Plan to open 100 net new stores in 2025, with a pipeline for 2026 already in progress, including 46 leases acquired from JOANN’s Fabrics.
Q2 2025 Comp Store Sales Guidance: Expected to be flat to up 2%.
FY 2025 Total Sales Growth Guidance: Expected to be in the range of 6% to 8%.
FY 2025 Adjusted EPS Guidance: Projected in the range of $8.70 to $9.30.
Capital Expenditures Guidance: Expected to be approximately $950 million for fiscal 2025.
Q2 2025 Adjusted EPS Guidance: Expected in the range of $1.20 to $1.30.
Share Repurchase Program: During the quarter, Burlington Stores purchased $105 million in common stock. At the end of Q1, there was $158 million remaining on the share repurchase authorization, which expires in August 2025. Additionally, the Board of Directors approved a new two-year $500 million share repurchase authorization.
The earnings call indicates solid financial performance with optimistic guidance for 2025 and beyond. The company plans significant store expansion, maintaining strong margins despite tariff pressures. New store productivity and the robust off-price merchandise environment are positive signs. Concerns about market share loss and economic uncertainties exist, but management's strategic focus and resilience among lower-income customers are reassuring. Overall, the sentiment is positive, suggesting a potential stock price increase of 2% to 8%.
The earnings call reveals a positive outlook with strong financial metrics, optimistic guidance, and strategic growth initiatives. Despite some risks like tariff pressures and weather sensitivity, the company demonstrates resilience through strategic inventory management and successful pricing strategies. The Q&A section highlights management's confidence in market positioning and new store performance. Overall, the positive guidance, strong new store pipeline, and effective cost management suggest a likely stock price increase in the short term.
The earnings call summary indicates a positive outlook with strategic initiatives such as Burlington 2.0 and store expansion. The Q&A section provides insights into effective tariff offsets and strong demographic performance. Despite some cautious guidance for the second half, the company's strategic actions and favorable trends, such as strong back-to-school sales and improved store conditions, suggest a positive sentiment. The overall financial health and strategic initiatives outweigh the cautious guidance, leading to a positive stock price prediction.
The earnings call reflects a mixed outlook. While there are positive elements such as a share repurchase program, improved margins, and strong EPS growth, there are concerns about decelerating comp sales growth, potential macroeconomic impacts, and supply chain challenges. The guidance for 2025 shows moderate growth expectations, but the uncertainty regarding tariffs and economic conditions could offset these positives. Given the balanced nature of these factors, a neutral stock price reaction is anticipated over the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
