Burlington Stores Inc

TJX Companies has lifted its long-term global store target by 500 locations to 7,500 stores across its existing banners and current 10 countries, up from the previous goal. The company ended the second quarter of fiscal 2027 with 5,285 stores, leaving room for more than 2,200 additional locations. The expansion includes raising the combined target for TJ Maxx and Marshalls by 300 stores to 3,300, and increasing HomeGoods' target by 200 stores to 2,000. TJX plans to accelerate annual store opening growth to 4% starting in fiscal 2028, up from 3%, citing opportunities in rural markets, closer store spacing, and smaller formats in urban areas. Rivals Ross Stores and Burlington Stores are also expanding, with Ross raising its 2026 opening plan to 115 stores and Burlington targeting at least 110 net new stores annually to reach 1,500 by end-2028. TJX shares have fallen 16.8% in the past month, and the company trades at a forward P/E of 23.88X, below the industry average of 27.82X.

Burlington Stores reported second-quarter results on August 27, with adjusted earnings per share jumping 38% to $2.37 after stripping out a $55 million tariff refund reinvested into customer prices. Total sales climbed 11% to $2,998 million, and the company opened 51 gross new stores, 45 net, bringing its total to 1,287 locations. Adjusted EBIT margin expanded 100 basis points to 7.0%, while net income reached $184 million. However, comparable store sales rose just 2%, with cannibalization from rapid store openings reaching 1.5 percentage points, and management flagged weather from late September as a critical swing factor for Q3. Third-quarter adjusted EPS is guided to $1.60 to $1.70, down from $1.80 a year ago, as 40% of the tariff refund is spent in the quarter. Hedge fund ownership rose to 49 funds, and short interest stands at 6.36% of float.

Burlington Stores reported second-quarter earnings that beat expectations, prompting the company to raise its full-year adjusted EPS guidance to $11.77-$11.97, up 16%-18% from fiscal 2025. The off-price retailer received approximately $55 million in tariff refunds during the quarter, which added $0.64 to EPS, but the company plans to reinvest the full amount into sharper customer values in the back half, making the net impact on full-year earnings neutral. Excluding the refunds, adjusted EPS rose 38% on top of 39% growth last year, with operating margin expanding 100 basis points. Total sales grew 11%, and comp sales increased 2%, with new store openings driving much of the growth. The company opened 51 gross new stores in Q2, bringing its store count to 1,287, and repurchased $87 million in stock during the quarter. For the full year, Burlington expects total sales growth of 10%-11% and comp sales growth of 3%-4%, while maintaining its sales guidance for the back half despite potential upside from lapping weather and tariff-related issues.

Major retailers and consumer goods companies are directing tariff refund payments toward price cuts as inflation-fatigued shoppers pull back on spending, according to The Wall Street Journal. The refunds trace back to a Supreme Court decision earlier this year holding that the International Emergency Economic Powers Act did not give President Donald Trump authority to impose those tariffs, an outcome that set off more than $160 billion in payments back to importers. Walmart said it rolled back prices on 11,000 items, including ground beef, using roughly $2.9 billion in tariff refunds, with CFO John David Rainey noting shoppers began making visible spending trade-offs in June as gas prices climbed above $4 a gallon. E.l.f. Beauty, which received about $50 million in refunded tariff payments, permanently lowered prices across around 10% of its catalog after a test that dropped the Halo Glow Skin Tint's price by $4 and drove unit sales up close to 40%; net sales for the quarter ended June 30 climbed 36% to $479.4 million. Tractor Supply channeled its refunds into shielding customers from freight and fuel cost increases, lowering prices on products including pine shavings and premium pet food, while its gross margin edged up to 37.1% for the quarter ending June 27 from 36.9% a year earlier. Not every retailer is passing refunds to shoppers: Lowe's CEO Marvin Ellison told CNBC the company received roughly $80 million in refunds and chose to direct them toward shareholder returns, and Kohl's CEO Michael Bender said the company put $100 million of its refunds into its gross margin and plans to invest the remainder in deeper inventory. Burlington Stores said it plans to reinvest all $55 million of its tariff refunds into lower prices over the second half of its fiscal year.

Burlington Stores reported strong fiscal 2026 second-quarter results, with sales up 11% and adjusted earnings per share excluding tariff refunds up 38% to $2.37, while announcing plans to reinvest approximately $55 million in tariff refunds into lower prices and improved customer value during the second half, making the full-year earnings benefit neutral. The company raised its full-year adjusted EPS outlook to $11.77–$11.97 and continues to target 135 gross store openings. Comparable-store sales rose 2%, pressured by new-store cannibalization, which reduced comps by about 1.5 percentage points. Management cited a cautious consumer, potential warm-weather pressure on outerwear, and ongoing cannibalization as key risks.

Burlington Stores reported second-quarter earnings of $2.96 per share, surpassing the Zacks Consensus Estimate of $2.18 and up from $1.59 a year ago, marking a 35.78% surprise. Revenue for the quarter ended July 2026 came in at $3 billion, slightly missing the consensus by 0.87% but up from $2.71 billion in the prior year. The company has beaten EPS estimates in each of the last four quarters. Management's commentary on the earnings call will likely influence near-term stock movement, with shares up 8.7% year-to-date versus the S&P 500's 12.1% gain. The current consensus EPS estimate for the coming quarter is $2.04 on $2.99 billion in revenues, and for the full fiscal year it is $12.21 on $12.83 billion in revenues.

The Consumer Staples Select Sector SPDR Fund rose 2.6% in July, as gains in discount retailers offset declines in alcoholic beverage and tobacco stocks. Target and Dollar General each rose about 10%, while Coca-Cola gained 7%, Molson Coors added 6.7%, and Philip Morris advanced 5.7%. Constellation Brands fell 6.3% to become the sector's worst performer, followed by Altria down 5.6%, Keurig Dr Pepper down 4%, and Procter & Gamble and Walmart each down 2%. Analyst Justin Purohit said Target's rally was driven by company-specific execution, while Dollar General's strength reflected consumers trading down amid inflation pressures, and he flagged discount retailers including Dollar Tree, TJX Companies, Ross Stores, and Burlington Stores as best positioned if inflation remains sticky.

The eight general merchandise retail stocks tracked by this publication reported a very strong first quarter, with revenues beating analysts' consensus estimates by 2.5% and next quarter's revenue guidance coming in 2.2% above expectations. Kohl's reported revenues of $3.17 billion, down 2% year on year and in line with expectations, making it the slowest grower in the group, though its stock has risen 33.4% since the report. Five Below led the group with revenues of $1.29 billion, up 32.5% year on year and beating estimates by 5.7%, while also delivering the highest guidance raise among peers, yet its stock fell 9.1%. Ollie's Bargain Outlet posted revenues of $658.9 million, up 14.2% but missing estimates by 0.7%, and its stock dropped 16.4%. Burlington Stores reported revenues of $2.86 billion, up 14.1% and beating estimates by 2.7%, with its stock up 5.9%. Ross Stores achieved the biggest analyst estimate beat with revenues of $6.01 billion, up 20.6% and surpassing expectations by 6.6%, and its stock gained 7.6%.

BJ's Restaurants has returned 71.3% so far this year, significantly outperforming the Retail-Wholesale sector's average gain of about 1.5%. The stock holds a Zacks Rank of 2, or Buy, and its full-year earnings estimate has been revised 1.4% higher over the past 90 days. Within the sector, BJ's Restaurants belongs to the Retail - Restaurants industry, which has gained about 0.5% year-to-date. Another sector outperformer, Burlington Stores, is up 19.6% this year and carries a Zacks Rank of 2, with its consensus EPS estimate rising 3.9% over the past three months.

Burlington Stores has been upgraded to a Zacks Rank #2 (Buy), reflecting an upward trend in earnings estimates. The Zacks Consensus Estimate for the company has increased 3.9% over the past three months, with analysts steadily raising their projections. For the fiscal year ending January 2027, the discount retailer is expected to earn $11.71 per share, unchanged from the prior year. The upgrade places Burlington Stores in the top 20% of Zacks-covered stocks based on estimate revisions, suggesting potential near-term stock price appreciation.

Ross Stores posted the strongest first-quarter results among discount retailers, with revenue of $6.01 billion, up 20.6% year over year and beating analyst estimates by 6.6%. The company also exceeded expectations for next-quarter EPS guidance and EBITDA. Five Below reported revenue of $1.29 billion, up 32.5% year over year, surpassing estimates by 5.7% and raising its full-year guidance, though its stock fell 15.2%. Ollie's Bargain Outlet had the weakest performance, with revenue of $658.9 million missing estimates by 0.7% and the softest full-year guidance update. TJX posted revenue of $14.32 billion, up 9.2% year over year and beating estimates by 2.4%, while Burlington Stores reported revenue of $2.86 billion, up 14.1% year over year and exceeding estimates by 2.7%. Overall, the five discount retailers tracked beat consensus revenue estimates by 3.3% and provided next-quarter revenue guidance 2.2% above expectations, though their average share price has declined 4.5% since reporting.

Burlington Stores raised its full-year fiscal 2026 adjusted earnings per share guidance to a range of $11.45 to $11.80 following first-quarter results that saw total sales rise 14% to $2.85 billion and comparable store sales increase 6%. Net income reached $115 million, with diluted earnings per share of $1.79 and adjusted earnings per share of $2.01, up 26% and well above the company's own previous guidance of $1.60 to $1.75. Gross margin expanded to 44.1% from 43.8% a year earlier, and adjusted EBITDA rose more than 16% to $284 million. The stock has surged nearly 50% over the past year, trading around $340 with a price-to-earnings ratio above 34, leaving limited upside according to a consensus analyst price target of $353.56. Burlington operates more than 1,200 off-price stores and competes with larger rivals TJX Companies and Ross Stores, while facing macroeconomic risks that could pressure consumer spending.