Burlington Stores Set to Release Q4 Fiscal 2024 Earnings Report

As Burlington Stores, Inc. (BURL) prepares to unveil its fourth-quarter fiscal 2024 earnings on March 6 before the market opens, investors are keenly observing the retailer’s performance in a challenging retail environment. This earnings report is anticipated to offer valuable insights into how Burlington Stores has managed recent economic fluctuations.

Expected Revenue Growth Amid Tough Conditions

Burlington Stores is projected to show significant growth in its revenue. The Zacks Consensus Estimate currently stands at $3.28 billion, reflecting a 5% increase from the previous year’s revenue. This projection indicates the company’s ability to sustain momentum despite a demanding operational landscape.

Additionally, Burlington is expected to report strong improvement in earnings. The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) has risen to $3.76, marking an increase from last year’s reported EPS of $3.66. This trend underscores Burlington’s capacity to enhance profitability as an off-price retailer offering high-quality branded apparel at competitive prices.

The company has demonstrated a trailing four-quarter earnings surprise of 18.8% on average. In its last reported quarter, Burlington surpassed the Zacks Consensus Estimate by 0.7%.

See the Zacks earnings Calendar for more market updates.

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

Factors Driving Burlington’s Q4 Earnings

With consumers focusing more on affordability, Burlington’s off-price retail model is particularly appealing. By providing brand-name products at reduced prices, the company effectively attracts a wide customer base, fostering loyalty and encouraging repeat purchases.

Burlington’s ability to adapt to changing consumer preferences gives it a competitive advantage. The company is aggressively pursuing an expansion strategy that includes opening new stores in high-traffic areas while relocating from lower-growth regions. Additionally, its use of real-time data for inventory management has enabled it to capitalize on market opportunities, driving both foot traffic and store productivity.

During this quarter, aligned with the holiday shopping season, Burlington is expected to have benefited from increased consumer spending. Its selection of seasonal apparel and essential home goods, along with a focus on value pricing and trendy merchandise, should contribute to higher store traffic and conversion rates. Comparable store sales are projected to rise by 1.4% in the fourth quarter.

Earnings Predictions According to the Zacks Model

As market participants await Burlington’s fourth-quarter earnings announcement, questions arise about whether the company will report an earnings beat or miss. According to our model, a definitive prediction of an earnings beat is inconclusive this time. The likelihood of an earnings beat increases with a positive earnings ESP coupled with a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold); however, this is not the case for Burlington.

Currently, Burlington Stores has a Zacks Rank of #3 and an earnings ESP of -0.69%. To discover stocks with favorable indicators, consider our earnings ESP Filter.

Alternative Investment Opportunities

Here are three other companies worth considering, as they exhibit the right mix of factors that could lead to an earnings beat:

Costco Wholesale Corporation (COST) boasts an earnings ESP of +0.14% and a Zacks Rank of #2. The Zacks Consensus Estimate for second-quarter fiscal 2025 EPS stands at $4.09, indicating year-over-year growth of 10.2%. The anticipated quarterly revenue of $63.2 billion signals an increase of 8.2% from the previous year’s quarter.

American Eagle Outfitters (AEO) has an earnings ESP of +2.29% and a Zacks Rank #3. Although a decline in fourth-quarter fiscal 2024 earnings is expected, with a consensus estimate of 50 cents per share, its revenue projection of $1.61 billion suggests a 4.3% decrease compared to last year.

Abercrombie & Fitch Co. (ANF) carries an earnings ESP of +0.59% and a Zacks Rank of 3. This retailer is forecasted to post a significant rise in quarterly earnings, with an EPS estimate of $3.49, reflecting a 17.5% increase from the year-ago figure. Revenue is projected to reach $1.56 billion, representing a year-over-year increase of 7.6%.

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Burlington Stores, Inc. (BURL): Free Stock Analysis report

American Eagle Outfitters, Inc. (AEO): Free Stock Analysis report

Costco Wholesale Corporation (COST): Free Stock Analysis report

This article initially appeared on Zacks Investment Research (zacks.com).

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.