Burlington Stores Q4 Earnings Beat Estimates, Comparable Sales Up Y/Y

Burlington Stores, Inc. BURL has reported impressive fourth-quarter fiscal 2024 results, wherein both sales and earnings surpassed the Zacks Consensus Estimate. Also, both the top and bottom lines grew year over year. Consequently, BURL shares rose 8.7% at the close of yesterday's trading session.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Burlington achieved strong sales growth in the fourth quarter, driven by effective merchandising, supply-chain improvements and store operations. Earnings exceeded expectations, supported by higher sales, improved margins and operational efficiencies. Throughout the year, the company expanded its footprint with new store openings and relocations, making significant progress toward its long-term financial goals. Also, the off-price model is well-positioned to navigate a dynamic market.Burlington Stores, Inc. Price, Consensus and EPS Surprise Burlington Stores, Inc. price-consensus-eps-surprise-chart | Burlington Stores, Inc. QuoteMore on Burlington’s Q4 Financial ResultsBurlington reported adjusted earnings of $4.07 per share, which surpassed the Zacks Consensus Estimate of $3.76. The bottom line rose 11.2% from $3.66 per share in the year-ago quarter. Total sales of $3,277.1 million increased 4.8% from the prior-year quarter and beat the Zacks Consensus Estimate of $3,261 million. The company’s comparable store sales jumped 6% from the year-ago period. Net sales were $3,272.1 million and other revenues were $5 million.Insight Into BURL’s MarginsThe gross margin was 42.9%, up 30 basis points (bps) from fourth-quarter fiscal 2023. The merchandise margin expanded 10 bps and freight expenses improved 20 bps year over year.Adjusted selling, general and administrative (SG&A) expenses rose 4% year over year to $745.6 million. Adjusted SG&A expenses, as a rate of net sales, were 22.8%, down 20 bps from fourth-quarter fiscal 2023. We estimated adjusted SG&A expenses, as a rate of net sales, to be 23.7% in the fourth quarter. Product sourcing costs were $217 million, up from $210 million in the year-ago quarter. Adjusted EBITDA increased 8.8% from the fourth quarter of fiscal 2023 to $451 million. The adjusted EBITDA margin increased 50 bps to 13.8%. Adjusted EBIT was $359.5 million, up 9.9% from $327.1 million in the year-ago quarter. The adjusted EBIT margin was 11%, up 50 bps from the year-ago quarter.BURL’s Financial Snapshot: Cash, Debt and Equity OverviewThe company ended the reported quarter with cash and cash equivalents of $994.7 million, long-term debt of $1.54 billion and stockholders’ equity of $1.37 billion. BURL exited the fiscal fourth quarter with $1.82 billion of liquidity, including $995 million of unrestricted cash and $827 million available under its ABL facility.Burlington ended the quarter with $1.71 billion of outstanding total debt, comprising $1.24 billion under its term-loan facility, $453 million of convertible notes and no borrowings under its ABL facility.The company bought back 218,443 shares for $61 million under its share repurchase plan in the fiscal fourth quarter. As of Feb. 1, 2025, BURL had $263 million remaining under its current share repurchase authorization.BURL Stock Past Three-Month PerformanceImage Source: Zacks Investment ResearchBURL’s Q1 & Fiscal 2025 GuidanceFor the first quarter of fiscal 2025, the company expects total sales to grow in the band of 5-7%, with comparable store sales expected to remain roughly flat compared with the first quarter of fiscal 2024. The adjusted EBIT margin is projected to decline in the range of 50-90 basis points from the same period last year. Adjusted earnings per share (EPS) are expected to range between $1.30 and $1.45 compared with $1.42 in the prior year.For fiscal 2025, the company expects total sales to increase in the band of 6-8% year over year. This projection assumes comparable store sales will rise between 0% and 2%. Capital expenditures, net of landlord allowances, are expected to be approximately $950 million. The company plans to open around 100 new stores. The adjusted EBIT margin is expected to improve 0-30 basis points from the previous fiscal year. Adjusted EPS is projected to range between $8.70 and $9.30 compared with $8.35 in the prior year. In the past three months, this Zacks Rank #3 (Hold) company has lost 11.5% against the industry's 0.5% growth.Stocks to ConsiderSome better-ranked stocks are Boot Barn Holdings, Inc. BOOT, Deckers Outdoor Corporation DECK and lululemon athletica inc. LULU.Boot Barn is a specialty retailer of premium, high-quality casual apparel. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Boot Barn’s fiscal 2025 earnings and revenues indicates growth of 21.4% and 14.9%, respectively, from the fiscal 2024 levels. BOOT delivered a trailing four-quarter average earnings surprise of 7.2%.Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It currently carries a Zacks Rank #2 (Buy).The Zacks Consensus Estimate for DECK’s fiscal 2025 earnings and revenues implies growth of 21.2% and 15.6%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 36.8%.lululemon is a yoga-inspired athletic apparel company that creates lifestyle components. It has a Zacks Rank of 2 at present. LULU delivered a 6.7% earnings surprise in the last reported quarter. The consensus estimate for lululemon’s fiscal 2025 earnings and revenues indicates growth of 12.5% and 9.7%, respectively, from the fiscal 2024 levels. LULU delivered a trailing four-quarter average earnings surprise of 6.7%.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deckers Outdoor Corporation (DECK): Free Stock Analysis Report lululemon athletica inc. (LULU): Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report Burlington Stores, Inc. (BURL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks