Retailer Burlington Stores Q3 sales up, raises EPS guidance

Overview

• Burlington Q3 total sales grew 7%, with a 1% rise in comparable store sales

• Adjusted EPS for Q3 rose 16% to $1.80

• Company raises full-year adjusted EPS guidance to $9.69-$9.89

Outlook

• Burlington raises full-year adjusted EPS guidance to $9.69-$9.89

• Company expects Q4 total sales to rise 7%-9%

• Burlington maintains Q4 comparable store sales guidance at 0%-2%

Result Drivers

• WEATHER IMPACT - Traffic to stores decreased after back-to-school period due to warm temperatures, but improved with cooler weather

• MARGIN IMPROVEMENT - Adjusted EBIT margin increased by 60 basis points, aided by cost management and tariff mitigation

• EARNINGS GUIDANCE RAISED - Full-year adjusted EPS guidance increased due to favorable margin and expense trends

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

• Wall Street's median 12-month price target for Burlington Stores Inc is $345.50, about 17.7% above its November 24 closing price of $284.47

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nGNX4hY1xh

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