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Burlington Stores (BURL) to Post Q1 Earnings: What to Expect

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Burlington Stores, Inc. (BURL - Free Report) is likely to register an increase in the top line when it reports first-quarter fiscal 2024 results on May 30 before market open. The Zacks Consensus Estimate for revenues is $2.34 billion, which indicates a rise of 9.7% from the prior-year reported figure.

The bottom line of this off-price retailer of high-quality, branded apparel at everyday low prices is expected to increase year over year. The consensus estimate for earnings per share (EPS), which has dipped by a penny to $1.04 in the past seven days, suggests a sharp increase from 84 cents reported in the year-ago period.

Burlington Stores has a trailing four-quarter earnings surprise of 10.1%, on average. In the last reported quarter, this Burlington, NJ-based company beat the Zacks Consensus Estimate by 11.6%.

Burlington Stores, Inc. Price, Consensus and EPS Surprise Burlington Stores, Inc. Price, Consensus and EPS Surprise

Burlington Stores, Inc. price-consensus-eps-surprise-chart | Burlington Stores, Inc. Quote

Factors to Note

Burlington Stores has adeptly responded to the challenges in the retail landscape by strategically emphasizing recognizable brands, implementing the best pricing strategy and targeting trade-down shoppers. The company’s ability to attract higher-income trade-down shoppers, particularly in apparel and accessories, suggests a broadening customer base and increased sales potential. The expansion of its merchandise offering, especially the increased focus on recognizable brands, is expected to have positively impacted the merchandise margin.

The implementation of strategic initiatives aimed at enhancing merchandising capabilities, operational efficiency and store optimization is likely to have supported revenue growth. By focusing on initiatives such as store relocations and downsizing, Burlington Stores aims to improve store productivity. The ability to quickly respond to evolving market dynamics and adjust inventory levels based on real-time data insights has enabled the company to seize opportunities. We estimate comp sales to increase 2% year over year.

However, it is essential to acknowledge the presence of certain headwinds, including underlying inflationary pressures and a high-interest rate environment, which are likely to pose challenges. Additionally, margins remain a critical area to monitor, with potential concerns stemming from any deleverage in the SG&A rate. We expect adjusted SG&A expenses to increase 10.3% year over year and as a percentage of net sales, this metric is likely to deleverage 290 basis points in the first quarter.

What the Zacks Model Unveils

Our proven model does not predict an earnings beat for Burlington Stores this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.

Burlington Stores has an Earnings ESP of -0.04% and a Zacks Rank of 4. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are three companies, which according to our model, have the right combination of elements to post an earnings beat:

Abercrombie & Fitch (ANF - Free Report) currently has an Earnings ESP of +2.53% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter EPS is pegged at $1.66, up 325.6% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Abercrombie & Fitch’s top line is expected to increase year over year. The consensus estimate for quarterly revenues is pegged at $952.3 billion, which indicates an increase of 13.9% from the figure reported in the prior-year quarter. ANF has a trailing four-quarter earnings surprise of 715.6%, on average.

American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +3.98% and a Zacks Rank of 3. The company is likely to register a bottom-line increase when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for the quarterly EPS of 28 cents suggests a 64.7% increase from 17 cents reported in the year-ago quarter.

American Eagle Outfitters’ top line is expected to increase year over year. The consensus estimate for quarterly revenues is pegged at $1.15 billion, which indicates an increase of 6.2% from the figure reported in the prior-year quarter. American Eagle Outfitters has a trailing four-quarter earnings surprise of 22.7%, on average.

Ollie's Bargain (OLLI - Free Report) currently has an Earnings ESP of +1.80% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports first-quarter numbers. The Zacks Consensus Estimate for quarterly EPS of 65 cents suggests a rise of 32.7% from the year-ago reported number.

Ollie's Bargain’s top line is expected to rise year over year. The consensus estimate for quarterly revenues is pegged at $505.8 million, which suggests an increase of 10.2% from the prior-year quarter. OLLI has a trailing four-quarter earnings surprise of 7.3%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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