Burlington (BURL) Q2 Earnings: What To Expect

Anthony Lee /
2023/08/23 11:41 am EDT

Off-price retail company Burlington Stores (NYSE:BURL) will be reporting earnings tomorrow morning. Here's what to look for.

Last quarter Burlington reported revenues of $2.13 billion, up 10.8% year on year, missing analyst expectations by 2.08%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.

Is Burlington buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Burlington's revenue to grow 9.29% year on year to $2.17 billion, improving on the 10.3% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.46 per share.

Burlington Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing four upwards revisions over the last thirty days. The company missed Wall St's revenue estimates five times over the last two years.

Looking at Burlington's peers in the apparel and footwear retail segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Ross Stores delivered top-line growth of 7.68% year on year, beating analyst estimates by 3.92%, and TJX reported revenues up 7.73% year on year, exceeding estimates by 2.51%. Ross Stores traded up 4.76% on the results, TJX was up 2.39%.

Read our full analysis of Ross Stores's results here and TJX's results here.

There has been a stampede out of high valuation technology stocks and while some of the apparel and footwear retail stocks have fared somewhat better, they have not been spared, with share price declining 6.07% over the last month. Burlington is down 3.6% during the same time, and is heading into the earnings with an analyst price target of $208.4, compared to share price of $167.87.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.