Burlington Stores Inc.’s stock is up in the near double digits on the heels of a third-quarter report that surpassed expectations.
For the three months ended Nov. 2, adjusted earnings per share at the firm were $1.55 — besting consensus bets of $1.40 a share — on profits that rose 25% to $104 million. Revenues also jumped 8.6% to $1.78 million, meeting Wall Street’s forecasts, while same-store sales climbed 2.7%.
As of 11:30 a.m. ET, shares for the New Jersey-housed retailer were up more than 9% to $227.13.
Q3 marks the first financial quarter since Michael O’Sullivan took the helm from longtime CEO Thomas Kingsbury. The new exec, who started at his post on Sept. 16, formerly served as COO at Ross Stores Inc.
“Given my background, I have been very focused on the fundamentals of the off-price model — in other words, the strength of our merchant team, our vendor relationships, the flexibility of our supply chain and the quality of our stores’ organization,” he said during the company’s conference call with analysts.
In recent years, Burlington has made a number of progressive business steps, including ditching massive promotions, enhancing its stores’ treasure hunt experience and expanding its merchandise assortment. It dropped the name “Coat Factory” in 2009 as part of Kingsbury’s turnaround strategy, which helped grow its share price from around $30 in 2014 to a high of $180 in late 2018.
For fiscal 2019, the firm predicts revenues to increase in the range of 8.8% to 9.1%, assuming same-store sales grow in the range of 2% to 3% during the fourth quarter. It anticipated adjusted EPS in the range of $7.28 to $7.33.
How Burlington Dropped ‘Coat Factory’ and Became a Wall Street Darling
Is the Off-Price Channel‘s Hot Streak Just About Over?