US retailer Burlington Stores expects 12-14% revenue growth in FY23

07 Jun '23

2 min read

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Insights

Burlington Stores projects a 12-14 per cent increase in total sales for FY23, assuming a 3-5 per cent rise in comparable store sales.
The company plans to open 70-80 new stores, expecting an adjusted EBIT margin increase of 80-120 basis points in FY23.
For Q2 FY23, the company forecasts an 8-10 per cent sales growth and adjusted EPS between $0.35 to $0.45.

Burlington Stores, a leading US-based off-price retailer, has outlined its growth expectations for fiscal 2023 (FY23). The company projects total sales to increase between 12 per cent and 14 per cent, inclusive of a 2 per cent contribution from the additional 53rd week, on top of a 7 per cent decrease in FY22. This projection assumes comparable store sales to rise between 3 per cent and 5 per cent, following a 13 per cent decrease in FY22.

Burlington Stores also anticipates net capital expenditures to be around $560 million. Additionally, the retailer plans to open between 70 to 80 net new stores in FY23, signalling its commitment to expanding its retail footprint, the company said in a press release.

Moreover, the company expects depreciation and amortisation, excluding favourable lease costs, to be approximately $320 million. The company forecasts an adjusted EBIT margin increase of 80 to 120 basis points compared to the previous year.

In terms of earnings, the company predicts adjusted earnings per share (EPS) to range from $5.50 to $6.00.

For the second quarter (Q2) of FY23, Burlington Stores forecasts total sales to increase between 8 per cent and 10 per cent. This prediction assumes a 2 per cent to 4 per cent increase in comparable store sales compared to the second quarter of Fiscal 2022. Furthermore, Burlington anticipates its adjusted EBIT margin to rise by 10 to 50 basis points relative to the same period last fiscal year.

Regarding earnings for Q2 FY23, the company expects its adjusted EPS to be in the range of $0.35 to $0.45, compared to $0.18 in diluted EPS and $0.35 in Adjusted EPS in the previous year.

“We are reiterating our full year sales and earnings guidance. We see plenty of uncertainty and we remain concerned about the economic health of the lower-income shopper, but we also see some potential tailwinds. The supply environment remains very strong and with our focus on value, we believe that we are well positioned to achieve this full year guidance,” said Michael O’Sullivan, CEO.

Fibre2Fashion News Desk (DP)

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