Burlington Stores (NYSE:BURL) stock soared over 20% in yesterday’s session despite reporting poor Fiscal Q3 results. Investors were optimistic about the company’s expectation of regaining its lost sheen in 2023. The company plans to better manage inventory levels within an improved expense environment.
Headquartered in New Jersey, Burlington sells clothing and accessories at discounted prices.
The company reported adjusted earnings of $0.43 per share, which were lower than the consensus estimates of $0.52 per share. These earnings also compared unfavorably to $1.36 per share in the prior-year period.
Also, revenues tanked 11% year-over-year to $2.04 billion and lagged consensus estimates of $2.06 billion. Comparable store sales decreased by 17%.
Burlington anticipates its Q4 sales to be encouraging as it witnessed positive trends in mid-October and November. For 2023, Burlington Stores CEO, Michael O’Sullivan said, “At this point, we are optimistic about the potential to drive some recovery in sales and margin next year.”
Is BURL a Buy?
The Wall Street community is optimistic about BURL stock. Overall, the stock commands a Strong Buy consensus rating based on 10 Buys and two Holds. BURL’s average price target of $186 implies 2.08% downside potential from current levels.
