Burlington Stores Stock Falls On Q2 Top-Line Miss, FY22 Outlook Cut

Burlington Stores Stock Falls On Q2 Top-Line Miss, FY22 Outlook Cut
  • Burlington Stores Inc BURL reported a second-quarter FY22 sales decline of 10% year-on-year to $1.98 billion, missing the consensus of $2.03 billion.
  • Comparable store sales decreased 17% versus last year, below its guidance of a 15% - 13% decline.
  • Gross margin contracted by 320 basis points to 38.9%. Total costs and expenses fell 5.7% Y/Y to $1.9 billion.
  • Adjusted EBITDA decreased 55% to $111 million, while the margin contracted 550 basis points.
  • Adjusted EPS of $0.35 beat the analyst consensus of $0.23.
  • Also ReadBurlington Stores Faces 13% Price Target Cut By This Analyst Ahead Of Q2 Results
  • The company held $461.6 million in cash and equivalents as of July 30, 2022.
  • Merchandise inventories at the end of Q2 increased 53% to $1.3 billion.
  • "We believe that the external factors – economic pressure on lower-to-moderate income shoppers, and very high levels of promotional activity – will continue well into the second half of the year. Accordingly, we are taking down our full year sales and earnings outlook," said CEO Michael O'Sullivan.
  • Outlook: Burlington sees Q3 adjusted EPS of $0.36 - $0.66 against the consensus of $1.39. Comparable store sales to decrease 18% - 15%.
  • It expects FY22 adjusted EPS of $3.70 - $4.30 (prior view $6.00 - $7.00) versus the consensus of $5.70.
  • BURL expects FY22 comparable store sales to decrease 15% - 13% (prior view for decline of 9% - 6%).
  • Price Action: BURL shares are trading lower by 8.18% at $150.34 on the last check Thursday.
  • Photo Via Wikimedia Commons

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