Burlington Stores Inc (NYSE:BURL) Misses Analysts’ Expectations

Burlington Stores Inc (NYSE:BURL), a nationally recognized off-price retailer of high-quality, branded apparel, footwear, accessories, and merchandise for the home at everyday low prices, stock fell 0.042% (As on November 23, 12:31:34 AM UTC-4, Source: Google Finance) after the company missed the Wall Street’s expectations for the third quarter of FY 22. The comparable store sales decreased 17% compared to the third quarter of Fiscal 2021. Gross margin rate as a percentage of net sales was 41.2% vs. 41.4% for the third quarter of Fiscal 2021, a decrease of 20 basis points. Merchandise margins decreased 90 basis points, partially offset by a 70 basis point improvement in freight expense. Adjusted Net Income was $28 million, vs. $93 million, for the third quarter of Fiscal 2021. Adjusted EBITDA was $123 million vs. $205 million in the third quarter of Fiscal 2021, a decrease of 290 basis points as a percentage of sales. Adjusted EBIT was $55 million, a decrease of 340 basis points as a percentage of sales. The Company ended the third quarter of Fiscal 2022 with $1,279 million in liquidity, comprised of $429 million in unrestricted cash and $850 million in availability on its ABL facility. The Company ended the third quarter with $1,478 million in outstanding total debt, including $949 million on its Term Loan facility, $508 million in Convertible Notes, and no borrowings on the ABL facility.

BURL in the third quarter of FY 22 has reported the adjusted earnings per share of 43 cents, missing the analysts’ estimates for the adjusted earnings per share of 52 cents, according to Zacks Investment Research. The company had reported 11 percent fall in the adjusted revenue to $2.04 billion in the third quarter of FY 22, missing the analysts’ estimates for revenue of $2.05 billion.

Additionally, during the third quarter of Fiscal 2022 the Company repurchased 370,599 shares of its common stock under its share repurchase program for $51 million. As of the end of the third quarter of Fiscal 2022, the Company had $399 million remaining on its current share repurchase program authorization.

For the current quarter ending in January, Burlington Stores expects its per-share earnings to range from $2.45 to $2.75.

The company expects full-year earnings in the range of $3.77 to $4.07 per share. For fiscal 2022, the company expects comparable store sales to decrease in the range of down 15% to down 14%.

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