Why Burlington Stores Stock Jumped This Morning

Shares of discount retailer Burlington Stores (NYSE: BURL) soared on Thursday. Following the release of strong fourth-quarter results, the stock opened 13.4% higher and backed down to an 11.5% overnight gain by 11 a.m. ET.

Burlington's sales numbers rose in a shorter quarter

Burlington's fourth-quarter sales rose 4.8% year over year, in line with the consensus analyst target of $3.28 billion. That's a robust increase, since the year-ago period was 14 weeks long, but this quarter only reflected 13 weeks of business results.

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Further down the income statement, adjusted earnings rose 12% to $4.13 per diluted share. Here, your average analyst firm would have settled for $3.77.

Same-store sales rose 6% year over year, well ahead of management's guidance, which ranged from flat to a 2% increase. Burlington added 101 net new stores in 2024 and relocated 31 oversized locations to smaller lots. The company had 1,108 active stores by the end of the fourth quarter, aiming to open another 100 more locations than it plans to close in 2025.

Bracing for potholes in 2025

The numbers were solid, and Burlington investors were impressed, but it wasn't all sunshine and rainbows. CEO Michael O'Sullivan noted that the economy looks "uncertain" in 2025. The company is planning for a rocky road ahead.

"We will manage our business cautiously and flexibly and be ready to react to whatever happens externally," O'Sullivan said. "This approach served us well in 2024, and we hope for the same in 2025."

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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.