In recent news, Burlington Stores reported strong earnings and comparable store sales, mirroring the performance of other “off-price” retailers who have seen an increase in demand for lower prices. CEO Michael O’Sullivan highlighted a particularly strong trend in August and September, with November also off to a solid start. This positive news caused shares to jump over 20% on Tuesday following the release.
Burlington Stores exceeded expectations with third-quarter fiscal 2023 earnings per share of $0.98 and a 6% increase in comparable store sales. Revenue also increased by 12% to $2.29 billion, which was in line with estimates. The company attributed its positive performance to gains in gross margin, merchandise margin, and freight expense.
This trend of consumers seeking more affordable prices was further confirmed earlier this month when Ross Stores reported stronger-than-expected results. As a result of Burlington Stores’ strong performance, its shares reached their highest level since August, although they remained in negative territory for the year. This suggests that there is potential for continued growth and success in the coming months for discount apparel and footwear chains like Burlington Stores.
Overall, the strong performance of off-price retailers like Burlington Stores highlights the growing demand for lower prices among consumers facing inflationary pressures. With continued growth and success in the coming months, these companies are well-positioned to capitalize on this trend and continue to provide affordable options for shoppers looking for deals on clothing and shoes.