Burlington Stores Inc. (BURL) - Get Burlington Stores Inc. Report posted stronger-than-expected third quarter earnings Tuesday, and lifted its full-year profit guidance, sending shares higher in pre-market trading.
Burlington Stores said adjusted earnings for the three months ending on November 2 came in at $1.55 per share, up 28% from the same period last year and 15 cents ahead of the Street consensus forecast. Group revenues, Burlington Stores said, rose 8.6% to $1.775 billion, but were modestly shy of the Refinitv forecast of $1.78 billion. Comparable store sales, however, rose 2.7% and were well ahead of analysts' estimates of a 1.3% gain.
Looking into the final months of the year, Burlington Stores said it sees full year earnings in the rate of $7.28 to $7.33 per share, up from its prior forecast of $7.14 to $7.22 per share, and total 2019 sales rising between 8.8% and 9.1%.
"We are pleased with our third quarter results, driven by a solid 2.7% comparable store sales increase, which was up against our most challenging comparison of the year, a 4.4% quarterly comparable store sales increase in Fiscal 2018," said CEO Michael O'Sullivan. "Overall we generated an 8.6% sales increase, which resulted in a 90 basis point increase in Adjusted EBIT margin, and a 28% increase in Adjusted EPS, well ahead of our guidance."
"In addition, our disciplined inventory management continued through the third quarter, as our comparable store inventory decreased 4%, enabling us to continue to take advantage of the abundant values available in the marketplace," he added.
Burlington Stores shares were marked 4.3% higher following the earnings release to change hands at $217.75 each, a move that would extend the stock's year-to-date gain to around 34%.