Burlington Stores Inc

Burlington Stores stock was up 8.4% as of 11:15 AM EST today in reaction to better-than-expected results for the first quarter, which ended on May 5.

Following the strong results in fiscal 2Q17, TJX Companies raised its earnings outlook for fiscal 2017. TJX expects its fiscal 2017 EPS to be in the $3.39–$3.43 range.

Major off-price retailers have strong margins supported by lean operating models, efficient inventory management, and strong vendor relationships.

Ross Stores and Burlington Stores stocks have risen 8.9% and 1.2%, respectively, on a year-to-date basis as of January 14.

Ross Stores, which falls in the moderate off-price space, does not seem to be keen on expanding its e-commerce business and does not have an online store.

Burlington Stores (BURL) beat analysts’ earnings expectations in the first three quarters of fiscal 2019. Here’s what to expect in 2020.

Burlington Stores (BURL) is taking several initiatives to deliver continued strong sales growth rates in a challenging market.

Despite a rough retail environment, off-price retailers TJX Companies (TJX), Ross Stores (ROST), and Burlington Stores (BURL) have been delivering strong sales growth. In this series, we’ll compare their margins, stock price movements, and analyst recommendations.

TJX Companies’ (TJX) gross margin in fiscal 1Q17 rose by 50 basis points on a year-over-year basis to 28.8%.

Aside from operating full-line upscale stores, Nordstrom also conducts off-price business through its Nordstrom Rack stores and off-price digital channels.

The US business of TJX Companies consists of 1,156 T.J. Maxx stores, 1,007 Marshalls stores, 526 HomeGoods stores, and eight Sierra Trading Post stores.

Burlington has been focusing on opening smaller stores. The average size of the new stores opened in 2013 and 2014 was a little over 60,000 square feet.

Burlington Stores targets the value-conscious, middle-class consumer. The number of customers making purchases at the company’s stores is large.

Burlington Stores derives its revenue from the sale of value-priced apparel, coats, and family footwear, baby furniture, accessories, home décor, and gifts.

Burlington follows an EDLP model, which helps customers get up to 60–70% savings off prices of similar merchandise in department and specialty stores.

Ross Stores operates under two trademarks: Ross Dress for Less and dd’s DISCOUNTS. There are 1,259 Dress for Less and 165 dd’s DISCOUNTS stores in the US.

All that goes up must come down. And this applies to economic cycles as well. No boom lasts forever, and all economies experience a slowdown.

Among TJX Companies’ business segments, Marmaxx is the largest with 2,094 stores under the T.J. Maxx and Marshalls brands, and 64.3% of net sales.

TJX Companies (TJX) has a very efficient internally developed inventory management system that helps the company ensure the proper flow of merchandise.