Here’s How Burlington Stores (BURL) Looks Before Q2 Earnings


We expect Burlington Stores, Inc. (BURL Quick QuoteBURL ) to register year-over-year growth in its top and bottom-line performances when it releases second-quarter fiscal 2021 results on Aug 26, before market open. The Zacks Consensus Estimate for the quarterly earnings currently stands at $1.45. The company reported a loss of 56 cents per share in the year-ago quarter. The consensus mark has also increased 6.6% in the past seven days.

A glance at its performance in the trailing four quarters shows that it delivered an earnings surprise of 74.7%, on average.
The consensus estimate for quarterly revenues is currently pegged at $2,132 million, indicating an improvement of more than 100% from the year-ago period’s reported figure.

Key Factors to Note

Burlington Stores’ second-quarter results are most likely to benefit from the solid execution of its Burlington 2.0 strategy, which aims at improving its off-price model. This initiative mainly focuses on three aspects, such as marketing, merchandising and store prototype to drive overall growth. The company continues to make investments in boosting assortments and merchandising capabilities.

The company is consistently containing costs and effectively managing inventory. This off-price retailer has been strengthening vendor counts, making technological advancements and focusing on localized assortments for a while now. All the aforesaid strengths are most likely to have aided its performance in the quarter under review.

On the company’s first-quarter earnings call on May 27, management had raised its internal baseline comp sales guidance to a positive 10% for the fiscal second quarter. It further cited that if the comp trend during the quarter under review surpassed 10%, then the company will have the ability to chase a higher sales target. Broad-based strength across its key merchandise categories might have boosted the metric.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Burlington Stores this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Burlington Stores, Inc. Price and EPS Surprise Burlington Stores, Inc. Price and EPS Surprise

Burlington Stores, Inc. price-eps-surprise | Burlington Stores, Inc. Quote

Burlington Stores currently has a Zacks Rank of 1 and an Earnings ESP of +15.26%.

Other Stocks With Favorable Combination

Here are a few other companies worth considering from the same sector as our model shows that these too have the right combination of elements to beat on earnings:

Abercrombie (ANF Quick QuoteANF ) has an Earnings ESP of +6.14% and is currently Zacks #1 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hibbett (HIBB Quick QuoteHIBB ) presently has an Earnings ESP of +0.04% and is a #1 Ranked player.

Costco (COST Quick QuoteCOST ) has an Earnings ESP of +0.44% and a Zacks Rank #3 at present.

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