Burlington Stores, Inc. (NYSE:BURL) is leaning into an off-price playbook, elevating assortments, refreshing stores, and tightening operations to strengthen value for shoppers.
A broad store expansion and product upgrades aim to keep sales momentum building into the year ahead.
In this backdrop, Bank of America Securities analyst Lorraine Hutchinson reiterated the Buy rating on Burlington Stores with a price forecast of $363.
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Per the analyst, Burlington Stores has outsized sales and margin recovery potential.
She highlights that the company has spent recent years reshaping itself to operate more like a classic off-pricer, investing in merchandise depth, store optimization, and distribution centers, and that this groundwork is starting to pay off.
As evidence, the analyst cites a 5% comparable-sales gain in the second quarter and a notable margin beat, which she views as proof that "Burlington 2.0" is taking hold.
With unseasonably warm weather pressuring the shares lately, Hutchinson views the pullback as an especially attractive entry point.
The analyst says the product-elevation push should keep lifting sales by upgrading the mix and value for shoppers.
She notes that the sharper assortment is resonating, supporting strong comparable growth and better merchandise margins, and that Burlington Stores has expanded its buying team by about 50% since pre-COVID to add seasoned merchants.
She models fiscal 2025 comps at +2%, but sees room for upside as the curated assortment continues to do the heavy lifting.
On growth, the analyst highlights a robust store rollout, about 500 openings across 2024–2028, with nearly all new units in the more productive ~25,000 sq. ft. format.
Roughly half the fleet has been refreshed with updated signage, layouts, and fixtures, producing a positive sales lift; the remainder should be completed in fiscal 2026.
Overall, the analyst models fiscal 2027 total sales up 9%, expecting store growth plus steady comps to sustain high single-digit sales expansion.
Per Hutchinson, Burlington's stock often rebounds when the weather turns colder, making the current pullback a potentially attractive entry given room for sales and margin gains.
Price Action: BURL shares were trading higher by 2.52% to $281.01 at last check Wednesday.
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