Shares of discount retailer Burlington Stores (NYSE: BURL) soared on Thursday. Following the release of strong fourth-quarter results, the stock opened 13.4% higher and backed down to an 11.5% overnight gain by 11 a.m. ET.
Burlington's sales numbers rose in a shorter quarter
Burlington's fourth-quarter sales rose 4.8% year over year, in line with the consensus analyst target of $3.28 billion. That's a robust increase, since the year-ago period was 14 weeks long, but this quarter only reflected 13 weeks of business results.
Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »
Further down the income statement, adjusted earnings rose 12% to $4.13 per diluted share. Here, your average analyst firm would have settled for $3.77.
Same-store sales rose 6% year over year, well ahead of management's guidance, which ranged from flat to a 2% increase. Burlington added 101 net new stores in 2024 and relocated 31 oversized locations to smaller lots. The company had 1,108 active stores by the end of the fourth quarter, aiming to open another 100 more locations than it plans to close in 2025.
Bracing for potholes in 2025
The numbers were solid, and Burlington investors were impressed, but it wasn't all sunshine and rainbows. CEO Michael O'Sullivan noted that the economy looks "uncertain" in 2025. The company is planning for a rocky road ahead.
"We will manage our business cautiously and flexibly and be ready to react to whatever happens externally," O'Sullivan said. "This approach served us well in 2024, and we hope for the same in 2025."
Should you invest $1,000 in Burlington Stores right now?
Before you buy stock in Burlington Stores, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Burlington Stores wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $718,876!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of March 3, 2025
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
