Burlington Stores (BURL) 1Q17 Results: Beats on EPS, Raises FY17 Outlook

Executive Summary

• Burlington Stores reported 1Q17 adjusted EPS of $0.79, up 38.6% from the year-ago quarter and above the $0.70 consensus estimate. Revenues were $1.35 billion, up 4.9% year over year and in line with company guidance, but slightly below the $1.36 billion consensus estimate.
• Same-store sales rose by 0.5% during the quarter on top of a 4.3% increase in the year-ago quarter, but the increase was lower than the 2.4% consensus estimate and company guidance, which called for a 1%–2% increase.
• The company raised its FY17 adjusted EPS guidance to $3.86–$3.96 from $3.77–$3.87; consensus calls for full-year EPS of $3.89. Burlington Stores reaffirmed its FY17 comp guidance of 2%–3% growth versus the 3% consensus estimate. The company expects 2Q17 adjusted EPS of $0.46–$0.50, compared with the $0.50 consensus estimate, and it expects comp sales to increase by 2%–3%.