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Burlington shares slide after cautious quarter guidance
The off-price retailer beat quarterly revenue and EPS expectations, but guided current-quarter EPS to $1.60 to $1.70 and flagged margin pressure from high sourcing costs.
Burlington Stores shares have fallen more than 30% from their July all-time high after the company’s outlook dimmed following its most recent earnings report, according to MarketBeat Ratings.
The outlet said Burlington beat analyst expectations for both headline revenue and earnings per share, but investors focused on guidance for the current quarter. Management expects earnings per share between $1.60 and $1.70, below the $1.80 posted for the same quarter last year and also below the $2.03 consensus estimate.
MarketBeat Ratings also noted Burlington expects margin pressure, citing stubbornly high costs to source merchandise. The sell-off pushed the stock’s relative strength index to around 17, its lowest reading in several years.
The outlet added that while near-term guidance disappointed, Burlington raised its full-year forecast. It said the shares had already been declining before the earnings release, and an earlier run-up in the stock left it vulnerable to profit-taking.