Key Points – Burlington beat first-quarter expectations with adjusted EPS of $2.10, up 26% year over year, while total sales rose 14% and comparable store sales increased 6%, well above guidance.
Management credited broad-based demand, strong markdown execution and supply chain productivity. – Margins improved despite headwinds, with gross margin up 30 basis points to 44.1% and adjusted EBIT margin at 6.3%, ahead of expectations
The company said stronger sales and disciplined inventory management more than offset cost pressures. – Full-year guidance was raised as Burlington passed through all of its first-quarter upside, now expecting sales growth of 9% to 11% and adjusted EPS of $11.45 to $11.80. The retailer also boosted its store expansion plan and said it remains bullish on demand for off-price value. – Ross Stores Earnings Beat Sends Stock To New Highs Burlington Stores (NYSE:BURL) reported stronger-than-expected fiscal first-quarter results, with executives saying the off-price retailer benefited from broad-based comp growth, better markdown execution and supply chain productivity. Chief Executive Officer Michael O’Sullivan said the company delivered a 26% increase in adjusted earnings per share, marking what he called Burlington’s 14th consecutive quarter of double-digit earnings growth.
Total sales rose 14% in the quarter, while comparable store sales increased 6%, above the company’s prior guidance range of 2% to 4%. – Wall Street Loves TJX, But Is the Stock Still a Good Deal for Investors? “This track record demonstrates our ability to consistently convert higher sales into margin expansion, thereby driving very strong earnings flow-through,” O’Sullivan said. Executive Vice President and Chief Financial Officer Kristin Wolfe said first-quarter adjusted EPS was $2.10, above Burlington’s guidance range of $1.60 to $1.75. Adjusted EBIT margin was 6.3%, up 20 basis points from the prior year and ahead of guidance that had called for a 60- to 100-basis-point…