Burlington Stores' fourth-quarter forecast 'conservative'

Burlington Stores

27/11/2024 17:34

** Off-price retailer Burlington Stores  BURL.N  missed Q3
estimates on Tuesday as warmer temperatures in mid-September
hurt sales in cold-weather apparel categories 
    ** At least six brokerages cut PT; median PT of 22 analysts
is $330

    OPTIMISM ON COLD WEATHER, OFF-PRICE STRENGTH

    ** J.P. Morgan ("overweight", PT: 342) notes a favorable
cold weather snap in December in addition to January to help
co's Q4, backing CEO's claim that November is off to a good
start
    ** Telsey Advisory Group("outperform", PT: $320) sees 
underlying trends remaining solid, and Q4 guidance as
potentially conservative
    ** Also sees store growth opportunity relative to peers that
can deliver incremental accretive topline growth over time
    ** TD Cowen ("buy", PT: 334) says the very strong comp
trends that BURL exhibited beginning in Q3 and now Q4,
irrespective of exogenous weather shocks, is supportive of the
strategies in place to strengthen its off-price model
    ** Barclays ("overweight", PT: $317) says a further
acceleration in growth hinges on execution of the off-price
model more efficiently, noting an attractive environment for
discount sellers
    

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))