Burlington Stores Inc (NYSE:BURL) stock rose 3.76% (As on November 22, 11:26:51 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the third quarter of FY 23. The company reported a 6% increase in comparable store sales for Q3, hitting the midpoint of their guidance range. This is due to a strong trend in August and September. However, the company’s performance was negatively affected by unseasonably warm weather in October. Gross margin rate as a percentage of net sales was 43.2% vs. 41.2% for the third quarter of Fiscal 2022, an increase of 200 basis points. Merchandise margin improved by 150 basis points and freight expense improved 50 basis points. Product sourcing costs, which are included in selling, general and administrative expenses (SG&A), were $200 million vs. $177 million in the third quarter of Fiscal 2022. Product sourcing costs primarily include the costs of processing goods through the supply chain and buying costs. Adjusted EBITDA was $176 million vs. $123 million in the third quarter of Fiscal 2022, an increase of 170 basis points over the prior year quarter as a percentage of sales. Adjusted EBIT was $99 million vs. $55 million in the third quarter of Fiscal 2022, an increase of 170 basis points as a percentage of sales. Adjusted EBIT, excluding approximately $10 million of expenses associated with the acquisition of Bed Bath & Beyond leases, was $109 million. Adjusted Net Income was $64 million, vs. $28 million for the third quarter of Fiscal 2022. Adjusted Net Income, excluding approximately $10 million of expenses associated with the acquisition of Bed Bath & Beyond leases, was $71 million, for the third quarter.

BURL in the third quarter of FY 23 has reported the adjusted earnings per share of 98 cents, missing the analysts’ estimates for the adjusted earnings per share of 99 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 12 percent to $2.29 billion in the third quarter of FY 23, missing the analysts’ estimates for revenue of $2.31 billion. The Company ended the third quarter of Fiscal 2023 with $1,440 million in liquidity, comprised of $616 million in unrestricted cash and $824 million in availability on its ABL facility.

Looking ahead, Burlington Stores Inc. anticipates a further increase in total sales for Fiscal 2023, estimating a growth of around 11%. They also project a rise of approximately 3% in comparable store sales. In terms of full-year earnings, Burlington Stores Inc. expects to be within the range of $5.72 to $5.87 per share.