Shares of Burlington Stores (BURL) jumped over 5% in intraday trading Thursday after the discount clothing chain reported better-than-expected results on higher sales and lower inventory.
The retailer posted fourth-quarter adjusted earnings per share (EPS) of $3.69, and revenue gained 13.9% from a year ago to $3.13 billion. Both exceeded estimates.
Comparable store sales rose 2%, ahead of the company’s earlier forecast of no growth or a slight loss. Gross margin increased 190 basis points (bps) to 42.6%.
For the full year, merchandise inventories declined to $1.09 billion from $1.18 billion. Reserve inventory fell to 39% from 48% at the end of fiscal 2022.
CEO Michael O’Sullivan noted that Burlington opened its 1,000th store in 2023, and has benefited from the acquisition of leases from bankrupt Bed, Bath & Beyond.
O’Sullivan added that there is “a lot of uncertainty in the external environment,” and the company is planning to be flexible, but is “ready to chase …