Shares of Burlington Stores Inc. (NYSE:BURL) rose more than 6% in early trading on Thursday after the off-price retailer reported stronger-than-expected fourth-quarter results, although its full-year comparable sales outlook lagged some rivals.
The company reported fourth-quarter revenue of $3.64 billion, beating Wall Street expectations of $3.58 billion. Earnings before interest and taxes totaled $434 million, above analysts’ estimates of $415.7 million.
Comparable store sales rose 4% during the quarter, topping the Street’s expectation of 2.8%, reflecting solid demand and disciplined expense control.
Jefferies analysts said the retailer delivered a “strong quarter,” highlighting comparable sales that came in above guidance alongside revenue growth and adjusted earnings per share of $4.89 that exceeded expectations.
Looking ahead, Burlington forecast first-quarter earnings per share of $1.60 to $1.75, below analysts’ expectations of $1.80. The company expects revenue growth of 9% to 11%, roughly in line with the Street’s estimate of 9.8%.
First-quarter comparable sales are projected to rise between 2% and 4%, compared with analysts’ estimate of 3.1%. Burlington also expects its adjusted EBIT margin to decline by 60 to 100 basis points in the quarter compared with the same period a year earlier.
For the full year, the retailer guided for earnings per share of $10.95 to $11.45, roughly in line with analysts’ estimate of $11.17. The company expects revenue growth of 8% to 9% year over year and comparable sales growth of 1% to 3%.
Jefferies noted that Burlington’s full-year comparable sales outlook trails some off-price peers, including TJX Companies, which has guided to 2% to 3% growth, and Ross Stores, which expects 3% to 4%.
The company also projected capital expenditures of about $875 million for the year, below analysts’ estimate of roughly $914.1 million.