Shares of Burlington Stores Inc. jumped 14.5 percent in early-afternoon trading after the company posted second-quarter results that beat Wall Street’s estimates.
Shares were trading at $54.75 shortly after noontime on Thursday.
For the three months ended Aug. 1, net income was $10.9 million against a net loss of $6.5 million a year ago. On an adjusted basis, profits were $14.9 million, or 19 cents a diluted share, against a loss of $877,000, or 1 cent, a year ago. Total revenues rose 9.6 percent to $1.15 billion from $1.05 billion, which included a 9.6 percent gain in net sales to $1.14 billion from $1.04 billion. The company said comparable-store sales rose 5.6 percent on top of the year-ago comps gain of 4.7 percent.
On an adjusted basis, Wall Street was expecting adjusted earnings per share of 12 cents on revenues of $1.12 billion.
Tom Kingsbury, president and chief executive officer, said the company is “well-positioned for the fall season and remains focused on delivering great value, highly desirable brands, an improved store experience and fresh product” on a daily basis. The company’s increase in adjusted earnings before interest, taxes, depreciation and amortization of 100 basis points was driven by operating expense leveraging and gross margin expansion.
For the third quarter ending Oct. 31, the company projects diluted EPS of 20 cents to 23 cents, on a net sales gain of between 6 and 7 percent and a comps increase of between 2 and 3 percent. For the full year ending Jan. 30, 2016, it guided adjusted diluted EPS at $2.27 to $2.32, on a net sales increase of between 6.5 and 7 percent and a comps increase of between 2.5 and 3 percent.
Cowen & Co.’s John Kernan said that Burlington’s “same-store sales acceleration and margin improvement are continued evidence that management is making further progress in transforming its business model.” He described the guidance the company provided as “fairly conservative.” The analyst also said Burlington is a “unique growth story, with the potential to nearly double its store base to 1,000 stores from 546 currently.”