Burlington Stores, Inc. ( BURL Quick Quote BURL - Free Report) is likely to register an increase in the top line when it reports third-quarter fiscal 2023 earnings on Nov 21 before market open. The Zacks Consensus Estimate for revenues stands at $2,313 million, indicating an increase of 13.4% from the prior-year reported figure. The bottom line of this off-price retailer of high-quality, branded apparel at everyday low prices is expected to have increased year over year. Although the Zacks Consensus Estimate for third-quarter earnings per share has fallen by a couple of cents to 99 cents in the past seven days, the figure still suggests a sharp increase from 43 cents reported in the year-ago period. Burlington Stores has a trailing four-quarter earnings surprise of 5.3%, on average. In the last reported quarter, this Burlington, NJ-based company outperformed the Zacks Consensus Estimate by a margin of 39.5%. Factors to Note
Burlington Stores has adeptly responded to the challenges in the retail landscape by strategically emphasizing recognizable brands, implementing the best pricing strategy and targeting trade-down shoppers. The expansion of its merchandise offering, especially the increased focus on recognizable brands, is expected to have positively impacted the company's merchandise margin.
The ongoing new store opening program, coupled with increased real estate availability post-Bed Bath & Beyond's bankruptcy, underscores Burlington Stores' growth trajectory. This strategic move positions the company to capture additional market share, bolstering its overall revenues. We expect a comparable store sales increase of 6.4% for the quarter under discussion. The ability to quickly respond to evolving market dynamics and adjust inventory levels based on real-time data insights has enabled the company to seize opportunities. On its last earnings call, Burlington Stores guided a 13% to 15% increase in sales, with 5% to 7% growth in comparable store sales. It projected a 170 to 220-basis point increase in the adjusted EBIT margin, excluding incremental expenses associated with the acquired Bed Bath & Beyond leases. We anticipate a 180-basis point expansion in the metric. Despite the aforementioned tailwinds, we cannot ignore concerns related to the company's dependency on lower-income customers and other operational challenges. The ongoing economic challenges continue to exert pressure on low-income shoppers, limiting discretionary spending. While Burlington Stores is optimistic about its new store opening program, immediate expenses related to the acquisition of 62 store leases from Bed Bath & Beyond may overshadow the expected benefits. What the Zacks Model Unveils
Our proven model predicts an earnings beat for Burlington Stores this time. 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, which is the case here. Burlington Stores has an Earnings ESP of +0.64% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. 3 More Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
American Eagle Outfitters ( AEO Quick Quote AEO - Free Report) currently has an Earnings ESP of +4.51% and a Zacks Rank #1. The company is likely to register a bottom-line increase when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 48 cents suggests an increase from 42 cents reported in the year-ago quarter. You can see . the complete list of today’s Zacks #1 Rank stocks here American Eagle Outfitters’ top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.28 billion, which indicates an increase of 2.8% from the figure reported in the prior-year quarter. American Eagle Outfitters has a trailing four-quarter earnings surprise of 43.2%, on average. Costco ( COST Quick Quote COST - Free Report) currently has an Earnings ESP of +3.00% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.43 suggests a rise of 10.7% from the year-ago reported number. Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $57.69 billion, which calls for an increase of 6% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 2.1%, on average. Five Below ( FIVE Quick Quote FIVE - Free Report) currently has an Earnings ESP of +1.69% and carries a Zacks Rank #3. The company is likely to register a bottom-line decrease when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 23 cents suggests a drop of 20.7% from the year-ago quarter. Five Below’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $726 million, which indicates a rise of 12.6% from the figure reported in the prior-year quarter. FIVE has a trailing four-quarter earnings surprise of 29.2%, on average. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.