2023-05-25 07:13:00 ET
Burlington Stores ( NYSE: BURL ) offered an earnings update that missed analysts expectations across the board on Thursday.
The off-price retailer fell short of both top and bottom line expectations for Q1, reporting EPS of $0.84 on $2.14B in revenue. The Street consensus for the top and bottom line stood at $2.18B and $0.92, respectively. Meanwhile, a 4% jump in comparable sales came up short of prior guidance and the consensus of 5.72%.
“Our first quarter comparable sales growth came in just below guidance. We had gotten off to a very strong start but then the trend fell off in March. We believe that this weakening in the trend was driven by two external and transitory factors – lower tax refunds and cooler weather leading up to Easter,” CEO Michael O’Sullivan said. “We have seen a nice pick-up in our trend since mid-April…We are encouraged by the recent trend but given the risks and uncertainties we think it is prudent to manage our business conservatively. We are ready to chase if this current trend is sustained.”
He added that the rebound into April encourages the company in reiterating full year EPS and revenue forecasts. Additionally, O’Sullivan said that easing supply chain issues and a pick up in off-price retail focus among consumers should serve as tailwinds.
The reiterated full-year outlook includes the expectation of a total sales to increase in the range of 12% to 14% and a comparable store sales increase in the range of 3% to 5%. Analysts had projected a 12.83% rise in sales for fiscal 2023 alongside a 3.99% rise in comparable sales. Adjusted EPS for the full year is expected to range from $5.50 to $6.00, short of the $6.02 Street consensus.
The Q2 outlook was particularly soft, with a projection of a total sales increase between 8% and 10%, assuming a comparable store sales increase in the range of 2% to 4%. Analysts had projected a 10.7% rise in revenue, abetted by a 4.21% increase in comparable sales. Adjusted EPS in the range of $0.35 to $0.45 forecast for Q2 was also well short of the $0.68 Street consensus.
Shares of Burlington Stores ( BURL ) slipped 2.07% shortly after the earnings announcement .
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Burlington Stores stock sinks on earnings miss, weak guidance