Movement Alert|Burlington Stores Falls 6.92% in Regular Trading, Q1 Earnings Beat Expectations but Full-Year Guidance Raise Disappoints

Market Focus05-29

On May 29, Burlington Stores fell 6.92% in regular trading, trading at $303.055/share, with trading volume of $4.72 billion. The stock declined sharply following its Q1 earnings release on May 28, as a strong quarterly beat was offset by a modest full-year guidance raise and profit-taking pressure.

Burlington reported Q1 adjusted EPS of $2.10, beating the consensus estimate of $1.78 by approximately 18% and representing a 31% year-over-year increase. Revenue came in at $2.86 billion versus the $2.80 billion expected, with comparable store sales rising 6%. This marked the company's fourteenth consecutive quarter of double-digit EPS growth.

However, the company raised its fiscal full-year adjusted EPS guidance to $11.45–$11.80, only modestly above the FactSet consensus of $11.49, suggesting limited upside flow-through from the Q1 beat. Ahead of the report, analysts had noted the stock was already up 12% year-to-date, with Q1 outperformance largely priced in, creating conditions for a sell-the-news reaction as investors locked in gains.

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