Burlington Stores reports Q2 EPS $1.24, consensus 95c

Reports Q2 revenue $2.46B, consensus $2.41B. Q2 comparable store sales increased 5% vs. 2Q23.CEO Michael O’Sullivan stated, “We are pleased with our results from Q2. Comparable store sales increased 5%, while total sales increased 13%. Both of these metrics were well ahead of our expectations. We saw very strong margin improvement and earnings growth during Q2. Our Adjusted EBIT Margin and Adjusted EPS increased 160 basis points and 98%, respectively. This strong performance was driven by the ahead of plan sales, as well as a significant increase in gross margin, and faster than expected progress in our supply chain efficiency initiatives. We remain confident in the outlook for our business for the balance of FY24. Based on our year-to-date performance, we are increasing our margin and earnings guidance for the full year, despite some incremental cost pressure from ocean freight. That said, there are some risks, so we are planning our business cautiously, and maintaining our comparable store sales guidance of 0% to 2% growth for the second half. As we did during Q2, we will chase if the underlying sales trend is stronger.”