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Shares of Burlington Stores, Inc. (BURL - Free Report) reached a 52-week high of $172.65, closing the session lower at $166.89 on Aug 21. Notably, the company has been undertaking strategic growth initiatives, including store expansion, which has been fueling its top- and bottom-line growth. This upside drove the stock higher, outpacing the industry in the past three months. Burlington Stores has rallied 22.4%, outperforming its industry’s and S&P 500 index’s growth of 12.7% and 5.2%, respectively.
The estimate revision trend for the current year is impressive as well. Over the past seven days, the Zacks Consensus Estimate for earnings per share moved up by a penny to $6.05. Furthermore, it has a long-term earnings growth rate of 18.1% and a VGM Score of B.
Let’s take a look at the factors driving the company’s performance.
Stellar Earnings & Sales History Boosts View
Burlington Stores has an impressive earnings surprise history, having outpaced estimates in the trailing 18 quarters. In first quarter fiscal 2018, the company’s earnings of $1.26 surpassed the Zacks Consensus Estimate and surged 59% from the figure registered in the prior year. Higher sales, margin expansion, cost control, share repurchase activity and lower tax rates drove the bottom line. It has been doing quite well on the revenue front as well. Burlington Stores’ top line not only exceeded estimates in seven out of the nine trailing quarters but also shown constant improvement over the past few quarters. In the first quarter, the top line rose 12.8% backed by the company’s solid beauty business.
Following this impressive performance, management raised its fiscal 2018 view. The company anticipates earnings to be in the range of $5.90-$6.00 per share compared with earlier forecast of $5.73-$5.83 per share. Total sales are projected to increase in the band of 9.7-10.5% in the fiscal year.
Strategic Initiatives Including Store Expansion Bode Well
Burlington Stores has made multiple changes to its business model in a bid to adapt to the ongoing changes in the industry. The company, which started business as a coat-focused off-price retailer, is now focusing on “open to buy” off-price model. The current model is helping customers to get nationally branded, fashionable, high quality as well as right priced products. Further, it has increased vendor counts, made technological advancements, initiated better marketing approach and focused on localized assortments over the years.
Also, Burlington Stores has been on track with its store expansion efforts to drive top-line growth. Notably, the company’s store count has increased from 13 in 1980 to 629 stores in fiscal 2017. Burlington Stores now intends to focus more on categories such as home, beauty and ladies apparel. Burlington Stores too remodeled 34 stores in fiscal 2017. The company plans to open 35 to 40 net new stores and remodel 34 stores in the current year. It also believes that there is room to increase the store count to 1,000.
Backed by such robust endeavors, we expect this Zacks Rank #3 (Hold) company to continue portraying solid performances and thereby maintain investors optimism in the stock.
Let Your Portfolio Experience Growth: Three Stocks to Buy
Urban Outfitters, Inc. (URBN - Free Report) pulled off an average positive earnings surprise of 19.4% in the trailing four quarters. It has a long-term earnings growth rate of 12% and a Zacks Rank #2 (Buy).
Buckle, Inc. (The) (BKE - Free Report) delivered an average positive earnings surprise of 9.7% in the trailing four quarters. The company carries a Zacks Rank of 2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Burlington Stores Scales 52-Week High: What's Driving It?
Shares of Burlington Stores, Inc. (BURL - Free Report) reached a 52-week high of $172.65, closing the session lower at $166.89 on Aug 21. Notably, the company has been undertaking strategic growth initiatives, including store expansion, which has been fueling its top- and bottom-line growth. This upside drove the stock higher, outpacing the industry in the past three months. Burlington Stores has rallied 22.4%, outperforming its industry’s and S&P 500 index’s growth of 12.7% and 5.2%, respectively.
The estimate revision trend for the current year is impressive as well. Over the past seven days, the Zacks Consensus Estimate for earnings per share moved up by a penny to $6.05. Furthermore, it has a long-term earnings growth rate of 18.1% and a VGM Score of B.
Let’s take a look at the factors driving the company’s performance.
Stellar Earnings & Sales History Boosts View
Burlington Stores has an impressive earnings surprise history, having outpaced estimates in the trailing 18 quarters. In first quarter fiscal 2018, the company’s earnings of $1.26 surpassed the Zacks Consensus Estimate and surged 59% from the figure registered in the prior year. Higher sales, margin expansion, cost control, share repurchase activity and lower tax rates drove the bottom line. It has been doing quite well on the revenue front as well. Burlington Stores’ top line not only exceeded estimates in seven out of the nine trailing quarters but also shown constant improvement over the past few quarters. In the first quarter, the top line rose 12.8% backed by the company’s solid beauty business.
Following this impressive performance, management raised its fiscal 2018 view. The company anticipates earnings to be in the range of $5.90-$6.00 per share compared with earlier forecast of $5.73-$5.83 per share. Total sales are projected to increase in the band of 9.7-10.5% in the fiscal year.
Strategic Initiatives Including Store Expansion Bode Well
Burlington Stores has made multiple changes to its business model in a bid to adapt to the ongoing changes in the industry. The company, which started business as a coat-focused off-price retailer, is now focusing on “open to buy” off-price model. The current model is helping customers to get nationally branded, fashionable, high quality as well as right priced products. Further, it has increased vendor counts, made technological advancements, initiated better marketing approach and focused on localized assortments over the years.
Also, Burlington Stores has been on track with its store expansion efforts to drive top-line growth. Notably, the company’s store count has increased from 13 in 1980 to 629 stores in fiscal 2017. Burlington Stores now intends to focus more on categories such as home, beauty and ladies apparel. Burlington Stores too remodeled 34 stores in fiscal 2017. The company plans to open 35 to 40 net new stores and remodel 34 stores in the current year. It also believes that there is room to increase the store count to 1,000.
Backed by such robust endeavors, we expect this Zacks Rank #3 (Hold) company to continue portraying solid performances and thereby maintain investors optimism in the stock.
Let Your Portfolio Experience Growth: Three Stocks to Buy
Amazon.com, Inc. (AMZN - Free Report) has a long-term earnings growth rate of 26.5% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Urban Outfitters, Inc. (URBN - Free Report) pulled off an average positive earnings surprise of 19.4% in the trailing four quarters. It has a long-term earnings growth rate of 12% and a Zacks Rank #2 (Buy).
Buckle, Inc. (The) (BKE - Free Report) delivered an average positive earnings surprise of 9.7% in the trailing four quarters. The company carries a Zacks Rank of 2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>