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Ross Stores and Burlington Stores’ Performance in 2018

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Jan. 16 2019, Updated 9:00 a.m. ET

Performance in fiscal 2018

Burlington Stores’ (BURL) adjusted earnings exceeded analysts’ expectations in each of the first three quarters of fiscal 2018. Ross Stores (ROST) missed analysts’ earnings expectations in the first quarter of fiscal 2018. However, Ross Stores delivered better-than-expected adjusted earnings in the second and third quarters.

Ross Stores’ adjusted EPS increased 26.4% to $0.91 in the third quarter. Analysts expected an adjusted EPS of $0.90. Higher sales and lower taxes drove Ross Stores’ adjusted EPS growth in the third quarter.

Burlington Stores’ third-quarter adjusted EPS increased 72.9% to $1.21 and beat analysts’ expectation of $1.06. The significant growth in Burlington Stores’ adjusted EPS was driven by better-than-expected sales growth, efficient expense management, and a lower effective adjusted tax rate.

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Earnings guidance

Ross Stores expects its fourth-quarter EPS to be $1.09–$1.14. Analysts expect Ross Stores’ adjusted EPS to increase 15.3% to $1.13 in the fourth quarter. Ross Stores expects its fiscal 2018 EPS to be $4.15–$4.20 compared to the previously issued guidance of $4.01–$4.10. The upgraded guidance reflects the inclusion of a benefit from the favorable resolution of a tax matter.

Burlington Stores expects its fourth-quarter EPS to be $2.71–$2.75 compared to $2.14 in the fourth quarter of fiscal 2017. Analysts expect the company’s fourth-quarter adjusted EPS to increase 27.6% to $2.77. Following strong results in the third quarter, Burlington Stores increased its fiscal 2018 EPS guidance to $6.33–$6.37 compared to the previous forecast of $6.13–$6.20.

Next, we’ll discuss analysts’ forecast for Ross Stores and Burlington Stores’ annual adjusted EPS.

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