Shares of discount clothing and home furnishings chain Burlington Stores (BURL) - Get Report surged by double digits on Thursday after the company posted quarterly sales and earnings that beat analysts' estimates and its own forecasts and lifted its outlook for the remainder of the year on strong sales of its discounted, off-the-rack merchandise.
The Burlington, New Jersey-based retailer posted adjusted earnings of $91.4 million, or $1.36 a share, vs. $78.9 million, or $1.15 a share, in the comparable year-ago period. Analysts polled by FactSet had been expecting earnings of $1.14 a share.
Sales increased 10.5% to $1.66 billion, while comparable-store sales increased 3.8%, the company said - both in line with analysts' forecasts.
Jim Cramer and The Street's Action Alerts team noted this week that this will be Thomas Kingsbury's last earnings call as CEO. As previously announced, Michael O'Sullivan, the former chief operating officer of fellow off-price chain Ross Stores (ROST) - Get Report will join the company in September and Kinsgbury will transition to an executive chairman role.
"Over time, we will look for O'Sullivan's expertise to drive Burlington's margins higher and closer to peers, thereby improving the earnings power of the company," Cramer and the AAP team said.
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For the remainder of its fiscal year, Burlington Stores said it now expects sales in the range of 8.9% to 9.3%, comparable-store sales of between 2% and 2.5%, and adjusted per-share earnings of between $7.14 and $7.22.
Shares of Burlington Stores jumped more than 17%, or $30.26 a share, to $203.10 in early trading on Thursday.
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