Burlington Stores beats by $0.04, reports revs in-line with preannouncement; guides Q4 EPS and rev just below consensus
Reports Q3 (Oct) earnings of $0.70 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.66 (raised EPS guide to $0.65-0.666 from $0.58-0.61 on Oct 30); revenues rose 7.1% year/year to $1.44 bln vs the $1.44 bln Capital IQ Consensus. This growth was driven by an incremental $60 million from new and non-comparable stores, as well as a 3.1% increase in comparable store sales, in-line with preannouncement and above +2-3% initial guidance. Consistent with the Company's policy regarding weather related incidents, the comparable store sales calculation excludes 19 stores which were closed for 7 or more days within a month during the third quarter. The impact of these store closures, which is reflected in the total sales results for the third quarter, reduced the incremental contribution from new and non-comparable sales by $17 million. Gross margin expanded by 100 basis points over last year's levels to 42.2% driven primarily by increased merchandise margin. In addition, product sourcing costs as a percent of sales were flat on a rate basis to the prior year's quarter. Product sourcing costs are included in selling, general and administrative expenses (SG&A).
Co issues downside guidance for Q4, sees EPS of $2.02-2.06, excluding non-recurring items, vs. $2.10 Capital IQ Consensus Estimate; sees Q4 revs of +11-12% to ~$1.87-1.89 bln vs. $1.9 bln Capital IQ Consensus Estimate.