- Telsey Advisory Group analyst Dana Telsey reiterated an Outperform rating on Burlington Stores Inc BURL and lowered the price target to $218 from $250, implying a 41% upside.
- Telsey sees the impact of inflation on the consumer and over-inventoried peers leading to a promotional environment that could impact the company's business.
- BURL will report second-quarter earnings results on Thursday, August 25, before the market open.
- She expects the inventory to be in-line to higher than last year for the remainder of the year due to shipping delays that caused a sales miss in the first quarter.
- The analyst agrees with management's thesis that economic slowdowns have historically benefited off-price retail at the expense of other channels.
- The analyst moderated estimates to reflect recent results from peers, including Kohl's Corp KSS and Ross Stores, Inc. ROST, as well as the ongoing macro and inflationary pressures that have disproportionately impacted the lower-income, price-conscious consumer.
- Related: Kohl's Shares Drop As Inflation Affects Q2 Earnings; Cuts FY22 Outlook Sharply
- Also View: Read How Analysts Reacted To Ross Stores' Q2 Results
- Price Action: BURL shares are trading lower by 5.3% at $154.56 on the last check Monday.
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