Courtesy of Benzinga.
Shares of Burlington Stores (NYSE: BURL) jumped more than 5% in pre-market trading after the company reported a narrower-than-expected second-quarter loss and lifted its forecast for the year.
The Burlington, New Jersey-based company posted a quarterly loss of $6.5 million, versus a year-ago loss of $25 million. Its adjusted loss narrowed to $0.01 per share from $0.19 per share.
Its revenue climbed 8.2% to $1.05 billion. Burlington in June had expected a loss of $0.09 to $0.12 per share on sales growth of 5% to 6%. However, analysts were expecting a loss of $0.08 per share on revenue of $1.03 billion.
Its comparable store sales rose 4.7%, versus the company’s June forecast of 2% to 3% growth.
Burlington’s total expenses increased 5.1% to $1.06 billion. Gross margin widened to 38.2% from 37.7%, while interest expense slipped $7.8 million to $25.5 million.
Its adjusted EBITDA climbed 23.8% to $58.1 million in the quarter.
Tom Kingsbury, President and Chief Executive Officer said, “We believe we are well positioned for the fall season based on the level and currency of our inventory and remain focused on delivering great value, brands,store experience and fresh product to our customers every day. I would like to thank our store and corporate teams for contributing to these results.”
Burlington Stores now projects full-year adjusted earnings of $1.52 to $1.58 per share, versus its previous forecast of $1.25 to $1.35 per share. It projects sales growth of 6.5% to 7.2%, versus its prior outlook for a growth of 5.8% to 6.8%.
Burlington expects Q3 adjusted profit of $0.09 to $0.12 per share, on sales growth of 6.4% to 7.4%. Analysts expected earnings of $0.11 per share on sales growth of 7%. It also projects comparable store sales to increase 3% to 4%.
The company plans to open 17 new stores and close 1 existing store at the end of the third quarter.
Burlington shares surged 5.38% to $38.00 in pre-market trading.
