#5 - Burlington Stores (NYSE:BURL)
Closing out our trilogy of off-price retailers is Burlington Stores (NYSE:BURL). The retailer reported worse than expected earnings and revenue on May 28. A significant reason for the larger than expected negative earnings number ($4.76 as opposed to $1.61) was a one-time $272 million charge. The company is absorbing the cost of anticipated markdowns.
However, the stock is recovering as many investors, it seems, are realizing that Burlington’s story is much the same as TJX and ROST. It closed all of its physical stores and is now in the slow process of reopening them. And, similar to other off-price retailers, Burlington is seeing a level of sales that are exceeding the level of previous years.
Like its competition, Burlington is not a significant player in the e-commerce space. According to management only about 0.5% of the company’s sales are online. This reflects the nature of the company’s merchandise which consumers typically want to see and touch before buying. However, this is the same story for its competitors so it’s not really a disadvantage at this time.
A more significant headwind is Burlington’s lack of a dividend. However, if the company continues to see sales grow as it continues to open its stores, Burlington still has room to run in 2020.
About Burlington Stores
Burlington Stores, Inc operates as a retailer of branded merchandise in the United States. The company provides fashion-focused merchandise, including women's ready-to-wear apparel, menswear, youth apparel, footwear, accessories, toys, gifts, and coats, as well as baby, home, and beauty products.
Read More - Current Price
- $286.17
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 15 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $297.56 (4.0% Upside)
