Burlington Stores Inc. (NYSE:BURL) reported revenue and earnings slightly ahead of market expectations, though the ‘off-price’ clothes retailer’s quarter evidently didn’t wow investors.
Earnings per share was marked at 60 cents, beating forecasts for 44 cents, whilst net income was up significantly at $30.9 million compared to $12 million a year ago.
Revenue for its second quarter came in at $2.17 billion, up from $1.98 billion for the same period last year, and a smidgen more than the $2.166 billion projected amongst analysts.
Comparable store sales were up 4%, at the top end of guidance, though chief executive Michael O’Sullivan cautioned over the pressure on the discount retailer’s core consumer base as Burlington looked to the rest of 2023.
“Looking at the spring season as a whole, it is clear that the lower-income shopper, our core customer, is still under significant economic pressure,” O’Sullivan said in a statement.
“Based on the underlying year-to-date comp trend we are narrowing our full-year comparable store sales guidance to a range of 3% to 4% versus 2022.
“It is possible that the trend will strengthen in the back half of the year, and if it does, then we are confident that we can chase it.”
O’Sullivan, meanwhile, told investors that Burlington retains "a huge opportunity" to expand its store inventory.
Specifically, he noted the recent acquisition of some 62 former Bed Bath & Beyond store locations.
“Over the past several months there has been an opening up in the supply of great real estate locations, driven by retail bankruptcies,” O’Sullivan added.
“These locations together with the broader loosening of real estate supply should significantly strengthen our new store and relocation pipeline for 2024 and potentially beyond.”
In terms of Burlington’s financial outlook, it pitched third-quarter earnings guidance in the range between 97 cents and $1.12 per share which is materially above the current Wall Street consensus estimate of 84 cents.
Full-year guidance, meanwhile, is set between $5.60 to $5.90 which is closer to analyst consensus of $5.80.
In New York, Burlington stock is down $2.95 or 1.74% changing hands at $167 per share in premarket trading.