Burlington Stores Q2 Profit, Sales Down; Sees Q3, FY22 Earnings Below Market View

(RTTNews) - Department store retailer Burlington Stores, Inc. (BURL) reported Thursday weak profit, total sales and comparable store sales in its second quarter. The company also projects third-quarter and fiscal 2022 earnings outlook below market estimates.

In pre-market activity on the NYSE, the shares were losing around 8.4 percent to trade at $150.

For the quarter, net income was $12 million, or $0.18 per share, compared to $103 million, or $1.50 per share last year. Adjusted net income was $23 million or $0.35 per share, compared to prior year's $133 million, or $1.94 per share.

On average, 19 analysts polled by Thomson Reuters expected earnings of $0.23 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue declined to $1.988 billion from last year's $2.216 billion. Net sales fell to $1.984 billion from last year's $2.213 billion. Total sales decreased 10 percent on top of a 34 percent increase in the prior year.

Analysts estimated sales of $2.03 billion for the quarter.

Comparable store sales decreased 17 percent? on top of 19 percent growth last year.

Looking ahead, for the third quarter, the company expects adjusted earnings per share in the range of $0.36 to $0.66, as compared to last year's $1.36. Analysts expect earnings of $1.39 per share for the quarter.

Comparable store sales are expected to decrease 18 percent to 15 percent. This translates to a 3-year geometric comparable store sales stack of down 4 percent to down 1 percent.

For the full year 2022, Burlington Stores now expects adjusted earnings per share in the range of $3.70 to $4.30, as compared to $8.41 last year.??Analysts expect earnings of $5.7 per share for the year.

Comparable store sales would decrease in the range of down 15 percent to down 13 percent for Fiscal 2022, on top of the 15 percent increase during Fiscal 2021.

Michael O'Sullivan, CEO, stated, "As we look further out, into 2023, we expect a recovery in sales and margins as inflation moderates, spending by low-income customers picks up, external promotional activity normalizes, other shoppers trade down to off-price looking for value, and expense pressures ease."

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