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Burlington Stores Drops Despite Earnings Beat and Outlook Raise

Burlington Stores, Inc. (NYSE: BURL) shares fell 10% on Tuesday after third-quarter revenue came in slightly below expectations, despite the company beating profit estimates and raising its full-year earnings forecast.

Adjusted EPS was $1.80, ahead of the $1.64 analyst estimate. Revenue totaled $2.71 billion, narrowly missing the $2.72 billion consensus. Total sales increased 7% from a year earlier, and comparable store sales rose 1%.

The company reported a 60-basis-point expansion in adjusted EBIT margin and 16% growth in adjusted EPS. CEO Michael O'Sullivan said merchandising and operating teams worked effectively to offset tariff-related margin pressures.

Burlington raised its full-year adjusted EPS outlook to $9.69 to $9.89, above the $9.54 analyst consensus. For the fourth quarter, it expects comparable store sales growth between 0% and 2%.