Burlington Stock Jumps As Q4 Earnings Crush Estimates, But CEO Warns Of 'Uncertain' 2025 Outlook

Burlington Stores, Inc. BURL shares are trading higher in the premarket session on Thursday.

The company reported fourth-quarter adjusted earnings per share of $4.13, beating the street view of $3.76.

Quarterly sales of $3.28 billion (+5% year over year) outpaced the analyst consensus estimate of $3.23 billion. Comparable store sales growth for the quarter was 6%, versus guidance of 0% to 2%.

“Taking 2024 as a whole, total sales increased 11%, comparable store sales increased 4%, and Adjusted EBIT Margin increased 100 basis points,” said Michael O’Sullivan, CEO. 

The quarterly gross profit was $1.404 billion, up from $1.333 billion in the year-ago period. Gross margin expanded by 30 basis points to 42.9%, freight improved by 20 basis points, and merchandise margin increased by 10 basis points.

Adjusted EBITDA was $456 million in the quarter under review, higher than $412 million in the year-ago period.

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“We opened 101 net new stores in 2024 and relocated 31 of our older oversized locations,” the CEO added.

The company ended the fourth quarter with $1.822 billion in liquidity, comprised of $995 million in unrestricted cash.

Outlook: “The outlook for 2025 is very uncertain and we will plan and manage our business accordingly,” the CEO said.

The company expects total sales to increase by 6% – 8%, on top of the 11% increase the prior year. The company sees adjusted EPS of $8.70 – $9.30 (estimate: $9.43).

Burlington expects first-quarter total sales to increase 5% – 7%, comparable store sales are expected to be flattish. The company sees adjusted EPS of $1.30 – $1.45 (estimate: $1.68).

Price Action: BURL shares are trading higher by 12.5% to $266.50 premarket at last check Thursday.

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