Shares of Burlington Stores (NYSE:BURL) closed Monday 8.54% higher at $73.58 per share after the retailer boosted its forecast for the 2016 second quarter. The company said it now sees adjusted earnings per share between $0.28 and $0.30. BURL also expects comparable-stores growth to increase between 4.2% and 4.5%.
Previously the company said that it was expecting earnings per share of $0.20 to $0.23, and comparable-stores growth of 2.5% to 3.5%. The current Zacks Consensus Estimate stands at $0.23 for the current quarter.
After today’s jump, BURL is now up 71.52% year-to-date. The company currently has a Zacks Rank #2 (Buy). Burlington Stores has had a great 2016 thus far, and clearly with this increased forecast for the quarter, the company is continuing build on its success. The company said it will update its full-year guidance when it reports its second quarter results, which is expected to be on September 6th.
Consumer spending continues to increase, as seen in June’s numbers from the US Commerce Department’s report, and Burlington Stores surely stand to gain even more if that growth continues. An improving US economy, low gas prices, improving wages, and a low employment rate all stand to benefit retailers in the US, and investors should keep an eye on BURL as a potential play on consumer spending growth if it continues to grow. (Also Read: 3 Stocks To Buy On A Strong Retail Sales Growth Report)
BURLINGTON STRS (BURL): Free Stock Analysis Report
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