Yahoo Finance Burlington Stores Beats 4Q15 Earnings Estimates on Higher Revenue
Burlington Stores Beats 4Q15 Estimates: Why the Subdued Outlook?
4Q15 earnings beat estimates
Off-price retailer Burlington Stores’ (BURL) reported EPS (earnings per share) of $1.49 in 4Q15 ended January 30, 2016. The company’s 4Q15 adjusted EPS beat analysts’ consensus earnings estimate of $1.46. Burlington Stores reported its 4Q15 results on March 3.
The 4Q15 performance of Burlington Stores and its larger peers Ross Stores (ROST) and The TJX Companies (TJX) proved the strength of the off-price business model. These off-price retailers attract higher traffic by selling their merchandise at deep discounts compared with department store prices.
Earnings growth drivers
The 4Q15 adjusted EPS of Burlington Stores grew 4.2% on a year-over-year basis, driven by higher sales and a reduction in the number of outstanding shares. The company’s diluted outstanding shares were down to 73.4 million at the end of 4Q15, compared with 76.3 million in 4Q14, due to share repurchase activity. The iShares Dow Jones US ETF (IYY) has 0.02% exposure to Burlington Stores.
Overall, the company’s adjusted EPS grew by 26.2% in fiscal 2015 to $2.31. Burlington Stores’ earnings in fiscal 2015 increased due to strong sales growth, a rise in its adjusted EBITDA 1 margin, and a reduction in diluted outstanding shares due to share repurchases.
Peer performance in 4Q15
Peers Ross Stores and The TJX Companies also exceeded analysts’ earnings estimates in the same quarter. Ross Stores’ 4Q15 adjusted EPS grew by 10%, primarily driven by higher sales. The TJX Companies reported a 6.5% growth in its adjusted EPS, driven by strong sales performance in the fourth quarter ended January 30, 2016. Nordstrom (JWN), which has a presence in the off-price space through its Nordstrom Rack stores, missed 4Q15 analysts’ estimates due to subdued sales and growth investments.
Despite an earnings beat, Burlington Stores’ stock price fell following its 4Q15 results as the company issued a weak outlook for fiscal 2016. We’ll discuss the company’s outlook in part six of this series. This series on the company’s 4Q15 results will also discuss its sales performance, strategic initiatives, margins, and the impressive year-to-date rise in the company’s stock price.
earnings before interest, tax, depreciation and amortization ↩
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