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Apparel retailer Burlington Stores' Q2 sales rise 10%

Overview

Burlington Stores Q2 total sales rise 10%, comparable store sales up 5%

Adjusted EPS for Q2 increases 39%, driven by higher merchandise margins

Co raises full-year adjusted EPS guidance, reflecting strong operational performance

Outlook

Burlington raises full-year adjusted EPS guidance to $9.19-$9.59

Company expects full-year sales to rise 7%-8%

Burlington projects Q3 sales growth of 5%-7%

Company plans to open approximately 100 net new stores in 2025

Result Drivers

MERCHANDISE MARGIN - Higher merchandise margins contributed to a 39% increase in adjusted EPS, per CEO Michael O’Sullivan

FREIGHT EXPENSE - Lower freight expenses helped improve the adjusted EBIT margin by 120 basis points

BURLINGTON 2.0 - Early impact of Burlington 2.0 strategies linked to strong Q2 sales and earnings results, according to CEO

Key Details

MetricBeat/MissActualConsensus Estimate
Q2 Net Sales$2.70 bln
Q2 Adjusted EPS$1.72
Q2 EPS$1.47
Q2 Net Income$94.18 mln
Q2 Comparable Store Sales Growth5.0%
Analyst Coverage The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell" The average consensus recommendation for the apparel & accessories retailers peer group is "buy" Wall Street's median 12-month price target for Burlington Stores Inc is $313.60, about 10.6% above its August 27 closing price of $280.30 The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 23 three months ago Press Release: ID:nGNXs6b44 (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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