Burlington shares surge premarket on fourth-quarter earnings beat

Investing.com - Shares in Burlington Stores (NYSE:BURL) rose by more than 13% in premarket U.S. trading on Thursday as better-than-anticipated fourth-quarter income at the retailer helped to offset concerns over an "uncertain" outlook for 2025.

The cut-price department store chain has been boosted by solid demand among bargain-hunting customers in the face of a murky picture for the American economy and lingering inflationary pressures. The company has previously noted strong sales among lower-income shoppers who have been seeking value even as incomes have been supported by a relatively resilient labor market.

Comparable sales in the three months ended on February 1 also climbed by 6%, outpacing Bloomberg consensus estimates of 2.03%.

In a statement, CEO Michael O'Sullivan said the performance was driven by "deliberate strategies that were well executed by our merchants, supply chain and stores teams," adding that the quarter demonstrated the "strength of our off-price business model."

Revenue grew by 4.8% compared to the prior year in the fourth quarter to $3.28 billion, versus expectations of $3.24 billion. Meanwhile, earnings per share was $4.07, rising from $3.66 a year earlier. Analysts had seen the figure at $3.76.

O'Sullivan flagged that the operating environment for the current year remains "very uncertain," echoing recent worries that have swirled around the potential impact of President Donald Trump's tariff plans.

Still, O'Sullivan noted that the business will remain cautious and flexible to react to external pressures, adding the off-price business model tends to be "at its best" against an uncertain backdrop.

"This approach served us well in 2024 and we hope for the same in 2025,” O'Sullivan said.

In the 52 weeks ending on January 31, 2026, Burlington expects total sales to increase in the range of 6% to 8%, easing from an annual uptick of 11% in the previous year. Comparable store sales growth is tipped to be "in the range of 0% to 2%," compared with 4% in its 2024 fiscal year.

Adjusted per-share profit is tipped to be between $8.70 to $9.30.