Burlington Stores Inc. (NYSE:BURL) reported second-quarter profit that beat Wall Street estimates, but the off-price retailer's shares fell after it issued a weaker-than-expected forecast for the current quarter.
The company posted adjusted earnings of $2.37 per share for the quarter, compared with analysts' average estimate of $2.18, according to the release.
Revenue rose 11% year-over-year to $3 billion, roughly in line with the $3.02 billion analysts had projected.
Comparable store sales climbed 2% from a year earlier. Gross margin expanded 250 basis points to 46.2%, while adjusted EBITDA rose 26% to $324 million, ahead of the $302 million estimate. Net income came in at $184 million, above the $137 million analysts had expected.
Shares of Burlington were down 3.5% following the results.
For the third quarter, Burlington forecast adjusted earnings of $1.60 to $1.70 per share, well short of the $2.03 analysts had expected. The company guided for total sales growth of 9% to 11% and said adjusted EBIT margin would contract by 60 to 80 basis points, with an adjusted effective tax rate of approximately 26%.
For the full year, Burlington projected total sales growth of 10% to 11% and adjusted earnings per share of $11.77 to $11.97. The retailer expects adjusted EBIT margin to expand by 20 to 40 basis points, an adjusted effective tax rate of approximately 25%, and capital expenditures of roughly $875 million.
Merchandise inventories stood at $1.5 billion, up 9% from a year earlier.