Burlington Stores (BURL +1.26%), a prominent off-price retail company, showcased a strong fourth-quarter performance for 2024, with earnings exceeding analysts' predictions.
On March 6, 2025, Burlington reported an adjusted earnings per share (EPS) of $4.13, outperforming expectations of $3.77. The company's revenue was $3.28 billion, surpassing the estimate of $3.24 billion.
Burlington's quarterly results reflect a period of solid growth, fueled by strategic initiatives and market penetration, despite ongoing challenges in the retail sector.
| Metric | Q4 2024 | Q4 Estimate | Q4 2023 | Y/Y Change |
|---|---|---|---|---|
| Adjusted EPS | $4.13 | $3.77 | $3.69 | 11.9% |
| Revenue | $3.28B | $3.24B | $3.13B | 4.8% |
| Adjusted EBIT Margin | 11.0% | N/A | 10.4% | 0.6 pp |
Source: SEC filings. Analyst estimates for the quarter provided by FactSet. PP = percentage points.
Business Overview
Burlington Stores is a leading off-price retailer known for offering high-quality, brand-name products at significantly discounted prices. Its business model is centered around purchasing merchandise at reduced rates and selling them up to 60% cheaper than traditional retailers. This attractive pricing strategy draws value-conscious consumers, ultimately driving consistent foot traffic and sales volume for the company.
In recent years, Burlington has prioritized expanding its store locations and enhancing supply chain efficiencies. Key success factors include strategic merchandise sourcing, achieving operational excellence through effective inventory management, and ensuring a pleasant shopping environment that encourages repeat visits from customers.
NYSE: BURL
Key Data Points
Quarterly Highlights
In the fourth quarter, Burlington's revenue grew by 4.8% year-over-year to $3.27 billion, beating estimates. Adjusted EPS increased to $4.13, a notable 12% rise from the previous year. Comparable store sales growth was a strong point with a 6% increase, far exceeding the earlier guidance of 0% to 2%. Burlington achieved these robust growth figures in spite of a 7% shorter reporting period, as the year-ago quarter had 14 weeks and this period only had 13.
The strong growth largely stemmed from Burlington's successful execution of its off-price retail model, which continues to attract a wide range of price-conscious consumers. Additionally, the company's efficient supply chain management played a significant role in its operational effectiveness, resulting in an adjusted EBIT margin of 11.0%, up 0.6 percentage points from the year-ago period.
Material one-time events during the quarter included improvements in store distribution and logistics operations. These initiatives, alongside store openings totaling 101 net new locations in 2024, reinforced Burlington's market presence. Liquidity at the end of the year remained strong, with $995 million in cash and equivalents, and $827 million available on its Asset-Based Lending facility.
Notably, current period merchandise inventories increased by 15% from the previous year's end, with a 3% decrease in comparable store inventories, highlighting efficient inventory management. These factors contributed to the company's capacity to mitigate risks associated with rapid expansion and adapt to shifting market trends.
Looking Forward
As Burlington approaches 2025, management anticipates a continuation of its growth trajectory, projecting total sales growth between 6% and 8% for the fiscal year. The company expects comparable store sales to rise by 0% to 2%, with adjusted EPS forecasted in the range of $8.70 to $9.30. Plans are in place to open approximately 100 net new stores this year, supporting its ambitious long-term goal of reaching 2,000 locations. Burlington added 101 net new stores in 2024, lifting the total location count 10% to 1,108 locations.
The retail sector landscape remains competitive, with Burlington focusing on sustaining growth amid potential economic uncertainties. Management will concentrate on leveraging its off-price model and expanding its market presence. Investors will likely remain attentive to future guidance updates and any strategic shifts in response to evolving consumer preferences and retail trends.
