Burlington Stores Inc (NYSE:BURL) stock fell 2.60% (As on March 8, 11:19:06 AM UTC-4, Source: Google Finance) though the company reported robust fourth-quarter results. The company’s comparable store sales jumped 2% from the year-ago period. The gross margin was 42.6% in the reported quarter, up 190 basis points (bps) from fourth-quarter fiscal 2022. Adjusted selling, general and administrative (SG&A) expenses rose 20.9% year over year to $716.9 million in the fiscal fourth quarter.
BURL in the fourth quarter of FY 23 has reported the adjusted earnings per share of $3.66, beating the analysts’ estimates for the adjusted earnings per share of $3.28, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 13.9 percent to $3.13 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $3.04 billion. Adjusted EBITDA increased 21.1% from the fourth quarter of fiscal 2022 to $414.4 million. The adjusted EBITDA margin increased 80 bps to 13.3% in the quarter under review. BURL exited the fiscal fourth quarter with $1,634 million of liquidity, including $925 million of unrestricted cash and $709 million available under its ABL facility. The company ended the reported quarter with cash and cash equivalents of $925.4 million, long-term debt of $1,394.9 million, and stockholders’ equity of $996.9 million.
For the current quarter ending in April, Burlington Stores expects its per-share earnings to range from 95 cents to $1.10.
The company expects full-year earnings in the range of $7 to $7.60 per share.
On the other hand, TD Cowen adjusted its outlook on Burlington Stores, Inc., increasing the stock price target to $230 from $185, while maintaining a Market Perform rating for the retailer’s stock. The revision reflects a positive view on the company’s ability to manage its margins effectively. Burlington Stores is currently perceived as fairly valued at 25 times its forecasted fiscal year 2025 earnings per share (EPS), trading at a premium compared to its peers Ross Stores and TJX Companies. The analyst highlighted the company’s potential to optimize supply chain costs as a particularly encouraging development. This improvement in supply chain efficiency is seen as a key factor in Burlington’s ability to enhance its profitability. Burlington Stores’ strategic focus on margin management comes at a time when retail companies are navigating a challenging economic environment, with consumer spending patterns shifting and supply chain issues affecting many industries.