Burlington Stores Q1 Earnings Beat Estimates, Raise Guidance
Burlington Stores (BURL) delivered a beat-and-raise quarter for Q1 fiscal 2025, with revenue of $2.5B and EPS of $1.85. The stock has surged 25% since Barron's recommendation.
Key Numbers
Burlington Stores (NYSE: BURL) reported better-than-expected fiscal first-quarter 2025 results, driven by strong demand for off-price apparel and home goods. The stock, up 25% since Barron's recommended it late last year, continued to outperform the S&P 500 and consumer discretionary peers.
Key Financial Results
| Metric | Q1 2025 | YoY Change |
|---|---|---|
| Revenue | $2.5B | +8% |
| Net Income | $120M | +15% |
| EPS | $1.85 | +12% |
| Comparable Store Sales Growth | 5% | vs 3% last year |
Highlights from the Release
CEO Michael O'Sullivan attributed the strong performance to "the strength of the off-price model in an inflationary environment," as consumers seek value. Growth was broad-based across categories including apparel, accessories, and home.
Forward Guidance
Burlington raised its full-year fiscal 2025 guidance, now expecting comparable store sales growth of 3-4% and EPS of $7.80-$7.95, up from prior guidance of $7.60-$7.80.
Stock Impact
Shares rose 3% in after-hours trading, extending year-to-date gains to over 30%. The stock trades at a P/E multiple of 22x, above the sector average of 18x.
What This Means for Investors
The results underscore the resilience of off-price retail amid inflationary pressures. However, investors should watch for any slowdown in consumer spending or increased competition from peers like TJX and Ross Stores.
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