First-quarter outlook updated
Burlington Stores (BURL) announced its CEO succession plan and its updated outlook for the first quarter of fiscal 2019 (which ends on May 4) after the markets closed on April 23. Burlington Stores now expects its fiscal 2019 first-quarter same-store sales growth to be in the range of 0%–0.5% compared to the previous guidance range of 0%–2% it issued in March 2019. The company didn’t specify any reasons for its trimmed outlook, but adverse weather conditions in February could be one of them.
Analysts expect Burlington Stores’ first-quarter sales to rise 6.4% to $1.6 billion.
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Will BURL’s fiscal 2019 sales improve?
Burlington Stores’ overall revenue (net sales and other revenue) rose 9.1% to $6.67 billion in fiscal 2018, which ended on February 2. The company’s net sales increased 9.2% to $6.64 billion in fiscal 2018 driven by same-store sales growth of 3.2% (on a shifted basis) and additional sales of $476.7 million from new and noncomparable stores. The company’s top line growth in fiscal 2018 was adversely affected by store closures and the impact of an additional week in fiscal 2017.
Burlington Stores updated its fiscal 2019 first-quarter sales outlook on April 23 but didn’t provide any new information on its fiscal 2019 outlook. Burlington Stores’ guidance, which it issued in March, indicates overall sales growth in the range of 9%–10% and same-store sales growth in the range of 1.5%–2.8% in fiscal 2019.
Analysts expect Burlington Stores’ fiscal 2019 net sales to rise 8.6% to $7.2 billion.
Burlington Stores intends to boost its sales by expanding into new categories and strengthening existing categories such as women’s apparel, home, beauty, and baby. The company is also working on its merchandising and marketing efforts to improve its same-store sales across all women’s categories.
Burlington Stores is remodeling its stores to improve the customer shopping experience. It’s also investing in its e-commerce business to improve its top line growth.