Burlington Stores (BURL) Stock Forecast & Price Target

Burlington Stores Inc. has demonstrated a strong sales trajectory, with a reported 7.1% year-over-year increase in total revenue, reaching $2.71 billion, and fourth-quarter comp sales reflecting a robust 6.0% growth. For Fiscal Year 2025, the company has raised its sales growth guidance to approximately 8%, driven by steady comp growth while continuing to benefit from its off-price retail model. Additionally, Burlington's expansion efforts and strategic relocations are positioned to enhance growth opportunities and improve operating margins, which have increased to a consensus of 7.4% from last year's 7.0%.

Burlington Stores Inc. is experiencing a challenging financial outlook characterized by slightly weaker total revenue than prior consensus expectations and a forecasted operating margin contraction of 30 basis points to 5.3%. The company anticipates a decline in gross margin year-over-year due to ongoing tariff pressures and noted a significant drop in customer traffic after September, attributed to unusually warm weather. Furthermore, the impact of bankruptcy-acquired leases is now expected to adversely affect earnings per share by approximately $0.41, which highlights additional financial pressures beyond the company’s standard EPS guidance.