Burlington disappoints analysts

Burlington disappoints analysts

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Burlington Stores laid forward revenue and profit growth. However the profit estimate rate has disappointed analysts by being lower-than-expected.

It’s been a year since a company primarily responsible for selling coats and apparel under its Burlington Coat slogan,  claims to be expecting adjusted/share earnings between US$2.62 – US$ 2.72 over net sales increment (i.e. between 6.5% to 7.5%). Not to mention, the net sales metric comprises of approx. 99% of total revenue.

[Exclusive from Reuters: Analysts had set an eye for around US$ 2.72/share in earnings alongside 7% revenue growth.]

Keeping in view the current quarter, Burlington had predicted approx. 44 cents/share to 48 cents/share (earnings) and 6.2% to 7.2% (sales growth). The estimates forecast by analysts were 49 cents/share with 7% revenue growth.

Comparable-store sales increased 0.1%, in comparison to an increase of 6.7% of previous year record.

The company had also announced unseasonable warm weather to cause a negative impact over it business, as per initial press releases. Moreover, comparable store sales excluding cold weather categories increased 4.0% compared to a year prior.

Earnings excluding one-time items rose to US$ 1.49/share from US$ 1.43 a year prior. Analysts had expected earnings/ share of US$1.46 on revenue of US$1.54 billion.The company posted earnings of US$98.8 million, compared with a year-earlier profit of US$ 94.9 million. Revenue rate of the company increased with 3.5% to US$1.55 billion.

UPDATE: Burlington has seen a turnaround in recent years, with sales rebounding following the financial crisis and the company returning to public markets last October.

“We are pleased with our 26% increase in Adjusted Net Income per Share, which was driven by our 5.9% total sales growth, expansion in AEBITDA margin, and share repurchase activity. In addition, we ended the year with reductions in both comparable store and aged inventories and began Fiscal 2016 with strong product offerings and significant open-to-buy to capitalize on the many opportunities we see in the market place.” –  President and Chief Executive Officer, Tom Kingsbury

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Javier Davis produces news on stocks, currencies, bonds, commodities, and real estate. His in-depth research covers most of the major financial markets in America, Europe, and Asia. His research is based on the interconnected relationships among economic and technical factors that drive valuations in the markets, with an emphasis on how to formulate investment strategies. From interest rates to inflation to economic growth and much more, the fundamental concepts presented on this website provide an essential foundation of knowledge for investors to profit in stocks, bonds, commodities, currencies, and real estate markets.

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