Burlington Stores, Inc. (BURL)

Burlington Stores, Inc. (BURL) Consumer Business Overview

Burlington Stores, Inc. is a national off-price retailer offering a wide selection of branded apparel, home goods, and accessories at discounted prices. Operating across 45 states and Puerto Rico, Burlington competes with other off-price retailers and department stores, targeting value-conscious consumers seeking quality brands at affordable prices.

What Is the Investment Thesis for BURL?

Burlington Stores presents a compelling investment case based on its strong off-price business model and potential for continued growth. The company's ability to procure branded merchandise at discounted prices and offer it to consumers at attractive values drives customer traffic and sales. With a market capitalization of $19.61B and a P/E ratio of 33.6, Burlington demonstrates financial stability. Growth catalysts include store expansion, comparable store sales growth, and margin improvement through supply chain efficiencies. However, potential risks include economic downturns affecting consumer spending, increased competition from other off-price retailers, and supply chain disruptions. The company's gross margin of 41.9% and profit margin of 5.3% highlight its profitability, while a beta of 1.62 indicates higher volatility compared to the market.

Based on FMP financials and quantitative analysis

BURL Key Highlights

• Market Cap of $19.61B reflects strong investor confidence in Burlington's growth potential.
• P/E Ratio of 33.6 indicates a premium valuation, suggesting expectations of future earnings growth.
• Gross Margin of 41.9% demonstrates effective cost management and pricing strategies.
• Profit Margin of 5.3% showcases the company's ability to convert sales into profits.
• Operation of 837 Burlington Stores across 45 states and Puerto Rico indicates a significant national presence.

Who Are BURL's Competitors?

BURL is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BURL's Key Strengths?

• Strong brand recognition and reputation for value.
• Extensive store network across the United States and Puerto Rico.
• Efficient supply chain and inventory management.
• Experienced management team.

What Are BURL's Weaknesses?

• Reliance on brick-and-mortar stores, with limited e-commerce presence.
• Exposure to economic downturns and consumer spending fluctuations.
• Dependence on suppliers for discounted merchandise.
• Potential for inventory obsolescence and markdowns.

What Could Drive BURL Stock Higher?

• Continued store expansion in strategic markets to increase market share.
• Enhancement of e-commerce platform to drive online sales growth.
• Optimization of supply chain to improve efficiency and reduce costs.
• Development and expansion of private label offerings to improve margins.
• Implementation of targeted marketing campaigns to drive customer traffic and sales.

What Are the Key Risks for BURL?

• Insider selling — insiders were net sellers of roughly $3.1M recently.
• Economic downturns affecting consumer spending and discretionary income.
• Increased competition from other off-price retailers and online retailers.
• Supply chain disruptions and inflationary pressures impacting merchandise costs.
• Changes in consumer preferences and fashion trends.
• Dependence on suppliers for discounted merchandise, which may be subject to availability and pricing fluctuations.

What Are the Growth Opportunities for BURL?

• Store Expansion: Burlington has the opportunity to expand its store footprint across the United States, targeting underserved markets and capitalizing on the increasing demand for off-price retail. The company's disciplined approach to store selection and real estate management can drive profitable growth. The U.S. off-price retail market is estimated at over $30 billion, providing ample room for Burlington to increase its market share. This expansion is an ongoing process, with new stores planned for the coming years.
• Comparable Store Sales Growth: Burlington can drive comparable store sales growth by enhancing its merchandise assortment, improving the shopping experience, and implementing effective marketing strategies. The company's ability to identify and capitalize on emerging fashion trends and consumer preferences will be crucial. Investing in data analytics and customer insights can help Burlington personalize its offerings and drive customer loyalty. This is an ongoing opportunity.
• E-commerce Expansion: While Burlington primarily operates brick-and-mortar stores, expanding its e-commerce presence represents a significant growth opportunity. The company can leverage its online platform to reach a broader customer base and offer a wider assortment of products. Investing in a seamless omnichannel experience, including online ordering, in-store pickup, and easy returns, can enhance customer satisfaction and drive sales. The global e-commerce market is projected to reach $6.5 trillion by 2023, highlighting the potential for online growth. This is an ongoing opportunity.
• Private Label Development: Developing and expanding its private label offerings can help Burlington differentiate itself from competitors and improve its gross margins. By offering exclusive products at competitive prices, the company can attract value-conscious consumers and build brand loyalty. Investing in design and sourcing capabilities will be crucial for developing high-quality private label products. The private label market is estimated at over $200 billion in the U.S., providing a significant opportunity for Burlington. This is an ongoing opportunity.
• Supply Chain Optimization: Optimizing its supply chain can help Burlington reduce costs, improve efficiency, and enhance its ability to respond to changing consumer demand. Investing in technology and infrastructure to streamline its sourcing, distribution, and inventory management processes will be crucial. The company can also explore strategic partnerships with suppliers to improve its sourcing capabilities and negotiate better pricing. Efficient supply chain management can lead to significant cost savings and improved profitability. This is an ongoing opportunity.

What Opportunities Does BURL Have?

• Expansion of store footprint in underserved markets.
• Enhancement of e-commerce capabilities and omnichannel strategies.
• Development of private label offerings to improve margins.
• Strategic partnerships to enhance sourcing and distribution.

What Threats Does BURL Face?

• Increased competition from other off-price retailers and online retailers.
• Changes in consumer preferences and fashion trends.
• Supply chain disruptions and inflationary pressures.
• Economic downturns and reduced consumer spending.

What Are BURL's Competitive Advantages?

• Strong relationships with suppliers, enabling access to discounted merchandise.
• Extensive store network across the United States and Puerto Rico.
• Brand recognition and reputation for value.
• Efficient supply chain and inventory management.

What Does BURL Do?

Burlington Stores, Inc., founded in 1972 and headquartered in Burlington, New Jersey, operates as a retailer of branded apparel and home products in the United States. Originally a family-owned business, the company has evolved into a major off-price retailer, offering a wide assortment of products, including women's ready-to-wear apparel, menswear, youth apparel, footwear, accessories, toys, gifts, coats, baby products, home goods, and beauty products. Burlington's business model revolves around procuring merchandise at opportunistic prices and offering it to consumers at discounts compared to traditional department and specialty stores. As of January 29, 2022, Burlington operated 837 stores under the Burlington Stores name, along with 2 Cohoes Fashions stores and 1 MJM Designer Shoes store, spanning 45 states and Puerto Rico. The company focuses on providing a treasure hunt shopping experience, with a constantly changing assortment of merchandise to attract and retain customers. Burlington's competitive strategy centers on value, brand recognition, and a broad product selection, catering to budget-conscious shoppers seeking quality and style.

What Products and Services Does BURL Offer?

• Operates as an off-price retailer of branded apparel and home products.
• Offers a wide assortment of women's, men's, and youth apparel.
• Provides footwear, accessories, toys, gifts, and coats.
• Sells baby, home, and beauty products.
• Procures merchandise at opportunistic prices.
• Offers products at discounts compared to traditional retailers.
• Operates over 800 stores across 45 states and Puerto Rico.

How Does BURL Make Money?

• Procures branded merchandise at discounted prices from manufacturers and suppliers.
• Offers a wide assortment of products at prices below traditional retail.
• Operates brick-and-mortar stores with a treasure hunt shopping experience.
• Focuses on value-conscious consumers seeking quality brands.

What Industry Does BURL Operate In?

Burlington operates within the competitive apparel retail industry, characterized by evolving consumer preferences and increasing competition from online retailers and other off-price stores. The off-price retail sector has experienced growth due to consumers' increasing focus on value and discounts. Key trends include the expansion of e-commerce channels, the growing importance of omnichannel strategies, and the increasing demand for sustainable and ethically sourced products. Burlington competes with retailers like Ross Stores and TJ Maxx, as well as department stores and specialty retailers. The company's success depends on its ability to differentiate itself through unique product offerings, competitive pricing, and a compelling shopping experience.

Who Are BURL's Key Customers?

• Value-conscious consumers seeking branded apparel and home products at discounted prices.
• Budget-minded shoppers looking for quality and style.
• Families seeking affordable clothing and accessories.
• Individuals looking for unique and constantly changing merchandise.

Burlington Stores, Inc. Financial Trajectory

Burlington Stores, Inc. (BURL) reported $2.86B in revenue for Q2 2026, a decline of 21.7% compared to the prior quarter. The company recorded net income of $114.7M, with diluted EPS of $1.79. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Consumer Cyclical. Across the four most recent quarters, BURL averaged $2.43 in diluted EPS.

Company Profile

Burlington Stores, Inc. operates in the Apparel - Retail industry within the Consumer Cyclical sector. It is headquartered in Burlington, US. The company is led by CEO Michael O'Sullivan. BURL has traded publicly since 2013.

How Burlington Stores, Inc. Is Valued

Burlington Stores, Inc. carries a market capitalization of $19.61B, placing it in the large-cap category. Relative to its peer group, BURL's quantitative score of 61/100 is roughly in line with the peer average of 71/100.

ROE 38%Key Financial Metrics

Return on equity for Burlington Stores, Inc. stands at 37.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 6.4%, showing how much profit it generates from its asset base. BURL trades at a trailing price-to-earnings ratio of 33.61, below the Consumer Cyclical sector average of ~39x. Its free cash flow yield is 2.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.16 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 2.9%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 6/9Financial Health

Burlington Stores, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 3.37 places it in the safe zone, indicating low near-term bankruptcy risk.

FY2027 estForward Outlook

Wall Street analysts project Burlington Stores, Inc. revenue of about $12.83B for fiscal 2027, with EPS near $11.81. The estimate reflects 12 contributing analysts.

Net buyingInsider Activity

Over the past six months, Burlington Stores, Inc. insiders filed 30 SEC Form 4 transactions — 16 sales and 14 purchases. On net that is roughly 6K shares acquired (about $3.1M) — insiders putting money in tends to read as conviction.

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Latest Burlington Stores, Inc. Analysis

Burlington Stores, Inc. Consumer Cyclical Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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