Burlington Stores (BURL) Rides High on Strategies: Apt to Hold

Back to top

Image: Bigstock Zacks Equity Research December 27, 2022 BURL TGLS WING CPRI Trades from $1 You follow Analyst Blog - edit You follow Zacks Equity Research - edit Read MoreHide Full Article Burlington Stores, Inc. (BURL - Free Report) stock seems well poised for growth, thanks to the successful execution of its Burlington 2.0 strategy and strong prospects. The main objective of the 2.0 initiative is to significantly improve the execution of the off-price model. The company has also been progressing well in its store-expansion efforts for a while now.Benefiting from such tailwinds, shares of this apparel retailer have surged a whopping 71.5%, surpassing the industry's 4.4% growth over the past three months. A Value Score of B for this presently Zacks Rank #3 (Hold) stock further speaks volumes.Moving forward, analysts seem optimistic about the stock. The Zacks Consensus Estimate for earnings per share (EPS) of $4.00 for fiscal 2022 and $6.36 for fiscal 2023 shows an increase of 0.5% and 1.9%, respectively, over the past 30 days.In fact, the consensus mark for fiscal 2023's EPS suggests year-over-year growth of 58.8%. The consensus estimate for the next fiscal year's sales of $9.53 billion mirrors an11.5% rise from the last fiscal year.Detailing Growth EffortsVia the 2.0 initiative, Burlington Stores focuses on three aspects namely marketing, merchandising and store prototype. Under the marketing aspect, it looks to communicate a stronger and more direct off-price value message in a more cost-effective manner. This marketing program is expected to leverage the company's wide reach. Management has increased vendor counts, made technological advancements, initiated a better marketing approach and focused on localized assortments. To drive top-line growth, Burlington Stores is focused on store expansion. The company's store-related efforts including smaller store prototypes have been on track. Management had earlier raised the long-term store target to 2,000 stores from 1,000, by virtue of the smaller store format enabled by the Burlington 2.0 strategy. Over time, this smaller prototype is likely to represent the majority of the company's new store openings. With this smaller prototype, the company aims to operate with leaner in-store inventory levels.Management remains optimistic about the outlook for 2023 on five factors. These factors are a greater consumer focus on value, lower levels of promotional activity with a recovering sales trend, strong availability of great off-price merchandise, taking the right actions and a better expense environment in 2023, particularly for the contracted transportation rates. It expects the availability of great in-season merchandise to be pretty strong in the year.Key Picks in RetailWe highlighted three top-ranked stocks, namely Tecnoglass (TGLS - Free Report) , Wingstop (WING - Free Report) and Capri Holdings (CPRI - Free Report) .Tecnoglass manufactures and sells architectural glass and windows, and aluminum products for the residential and commercial construction industries. TGLS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Tecnoglass' next financial-year sales and EPS suggests growth of 111.2% and 9%, respectively, from the year-ago reported figures. TGLS has a trailing four-quarter earnings surprise of 26.9%, on average.Wingstop, which franchises and operates restaurants, currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 5.8%, on average.The Zacks Consensus Estimate for Wingstop's next financial-year sales and EPS suggests growth of 18.4% and 16.1%, respectively, from the year-ago reported numbers. WING has an expected EPS growth rate of 12% for three-five years.Capri Holdings, a global fashion luxury group of iconic brands like Versace, Jimmy Choo and Michael Kors, carries a Zacks Rank of 2 at present.The Zacks Consensus Estimate for Capri Holdings' current financial-year sales and EPS suggests growth of 0.9% and 10.6%, respectively, from the corresponding year-ago tallies. CPRI has a trailing four-quarter earnings surprise of 21%, on average. retail

< MSN Marketwatch Nasdaq Forbes Investors.com Morningstar Reviewed by Accessible360 This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc. Copyright 2022 Zacks Investment Research This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.51% per year. These returns cover a period from January 1, 1988 through September 12, 2022. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Visit Performance Disclosure for information about the performance numbers displayed above. Visit URL to get our data and content for your mobile app or website. Real time prices by BATS. Delayed quotes by Sungard. NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.