- Burlington Stores posted strong earnings and comparable store sales, joining rival "off-price" retailers?reporting shoppers seeking lower prices boosted its business.
- CEO Michael O'Sullivan indicated the chain had a strong August and September, and that November is "off to a solid start."
- Shares skyrocketed over 20% Tuesday following the news.
Burlington Stores (BURL) became the latest off-price retailer to post better-than-expected results as shoppers looking for lower prices boosted sales. Shares skyrocketed over 20% Tuesday following the news.
The discount apparel and footwear chain reported third quarter fiscal 2023 earnings per share of $0.98, with comparable store sales rising 6% from a year ago. Both exceeded forecasts. Revenue increased 12% to $2.29 billion, in line with estimates. Gross margin gained 200 basis points (bps), merchandise margin was up 150 bps, and freight expense improved 50 bps.
CEO Michael O’Sullivan explained that Burlington had “a strong trend in August and September,” and that along with good merchandise margins, “delivered earnings at the high end of our expectations.” He added that “November is off to a solid start,” and said “we feel very good about how we are set up” for the upcoming holiday shopping season.
Burlington Stores shares shot up to their highest level since August, although they remained in negative territory for the year.??