As Burlington Stores, Inc. (BURL Quick QuoteBURL - Free Report) readies to announce its third-quarter fiscal 2024 earnings, investors are closely watching for insights into the company's performance amid a challenging retail landscape. The earnings report, scheduled for release on Nov. 26 before the opening bell, is expected to provide critical indicators of how Burlington Stores has navigated recent economic shifts.

The company is anticipated to show a notable increase in its top line. The Zacks Consensus Estimate for revenues is currently pegged at $2.56 billion, implying an 11.9% rise from the prior year's reported figure. This potential growth reflects Burlington's ability to maintain momentum despite a tough operational environment.

Burlington Stores is also expected to deliver strong bottom-line growth. The Zacks Consensus Estimate for third-quarter earnings per share has risen by a penny to $1.54 over the past seven days, indicating a substantial increase from the 98 cents reported in the same quarter last year. This suggests that the off-price retailer, known for offering high-quality branded apparel at everyday low prices, continues to enhance its profitability.

Burlington Stores has a trailing four-quarter earnings surprise of 18.4%, on average. In the last reported quarter, this Burlington, NJ-based company outperformed the Zacks Consensus Estimate by 26.3%.

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The Dynamics Behind Burlington’s Q3 Earnings

At a time when consumers continue to prioritize affordability, Burlington Stores’ off-price model resonates strongly. By offering brand-name products at discounted prices, the company successfully attracts a diverse customer base, fostering repeat purchases and enhancing customer retention.

Burlington Stores’ ability to adapt to evolving consumer preferences provides a distinct competitive edge. The company’s aggressive expansion strategy, including store openings in high-traffic markets and relocations from slower growth areas, is broadening its reach and allowing it to tap into new demographics. The ability to quickly adjust inventory levels based on real-time data insights has enabled the company to seize opportunities. This approach not only drives foot traffic but also improves store productivity.

With the third quarter aligning with the back-to-school and early holiday shopping seasons, Burlington Stores is poised to have benefited from heightened consumer spending. Its curated mix of seasonal apparel, home goods and essentials, combined with a strong emphasis on value pricing and on-trend merchandise, is expected to have driven higher store traffic and conversion rates. We expect comparable store sales to increase 2% during the third quarter.

What the Zacks Model Predicts for BURL

As investors prepare for Burlington Stores' third-quarter announcement, the question looms regarding earnings beat or miss. Our proven model does not conclusively 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 odds of an earnings beat. However, that is not the case here.

Burlington Stores currently carries a Zacks Rank #3 but has an Earnings ESP of -0.07%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

3 Stocks With the Favorable Combination

Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Abercrombie & Fitch Co. (ANF Quick QuoteANF - Free Report) has an Earnings ESP of +4.59% and a Zacks Rank of 2 at present. ANF’s top line is anticipated to advance year over year when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.18 billion, which suggests an 11.8% rise from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is expected to register an increase in the bottom line. The consensus estimate for Abercrombie & Fitch’s third-quarter earnings is pegged at $2.32 per share, up 26.8% from the year-ago quarter. ANF has a trailing four-quarter earnings surprise of 28%, on average.

Five Below (FIVE Quick QuoteFIVE - Free Report) has an Earnings ESP of +19.73% and currently carries a Zacks Rank of 3. FIVE’s top line is anticipated to advance year over year when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $799.2 million, which suggests an 8.5% rise from the figure reported in the year-ago quarter.

The company is expected to register a decline in the bottom line. The consensus estimate for Five Below’s third-quarter earnings is pegged at 16 cents a share, down 38.5% from the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 1.6%, on average.

Casey's General Stores (CASY Quick QuoteCASY - Free Report) has an Earnings ESP of +1.50% and currently carries a Zacks Rank of 3. CASY’s top line is anticipated to decline year over year when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4 billion, which suggests a 1.4% decline from the figure reported in the year-ago quarter.

The consensus estimate for Casey's second-quarter earnings has dropped by 1% over the past seven days and is now pegged at $4.24, flat year over year. CASY has a trailing four-quarter earnings surprise of 15.8%, on average.