Burlington Stores upbeat on improved Q3 margins

Burlington Stores

21/11/2023 15:53

(Updates)
    ** Shares of discount retailer Burlington Stores  BURL.N  up
as much as 19.8% at $164, headed for best day since November
2022
    ** Co's margins improve and profit beat Q3 expectations
    ** "November is off to a solid start, helped by cooler
weather at the beginning of the month. We feel very good about
how we are set up for holiday"- CEO Michael O'Sullivan
    ** Gross margins rise 200 basis points, while Merchandise
margin improved 150 basis points; freight expense up 50 basis
points
    ** Expects FY adj. EPS of $5.52-$5.67, including a $0.20
expense tied to its recent purchase of Bed Bath & Beyond
    ** Last week, peers Ross Stores  ROST.O  and TJX Cos  TJX.N 
raised Q3 sales and profit expectations
    ** Stock down ~33% this year, up to last close

 (Reporting by Annett Mary Manoj)
 ((AnnettMary.Manoj@thomsonreuters.com))