09:06 AM EDT, 05/29/2025 (MT Newswires) -- Burlington Stores' ( BURL ) fiscal first-quarter earnings rose year over year and topped market estimates, while Chief Executive Michael O'Sullivan expressed confidence that the company can offset tariff-related headwinds at current levels.

The off-price retailer on Thursday posted adjusted earnings of $1.60 a share for the quarter ended May 3, up from $1.35 the year before, exceeding the FactSet-polled consensus of $1.43. Excluding certain costs related to bankruptcy acquired leases, adjusted EPS came in at $1.67. The stock jumped 6.9% in the most recent premarket activity.

Sales improved 6% to $2.5 billion, below the Street's view for $2.53 billion. Comparable store sales were flat, versus the average analyst estimate for growth of 0.3%. The retailer's merchandise margin expanded by 20 basis points, while freight expense as a percentage of sales increased by 10 basis points.

"The environment has become more uncertain since March, especially with regard to tariffs," O'Sullivan said in a statement. "We anticipate that tariffs will put significant pressure on our merchandise margin, but we are confident that, as long as tariffs do not increase from current levels, we can offset this pressure elsewhere in the (profit and loss)."

These offsets, combined with its first-quarter "earnings favorability," provide the company a path to achieve its original guidance, according to O'Sullivan. Burlington has "many advantages that traditional retailers do not have" and can operate with more flexibility, the CEO added.

Burlington continues to project adjusted EPS of $8.70 to $9.30 for fiscal 2025, excluding $25 million of expected costs linked to bankruptcy acquired leases in the current fiscal year and $12 million in fiscal 2024. The Street is currently looking for non-GAAP EPS of $9.26.

The company also reiterated its sales growth guidance of 6% to 8% and comparable store sales guidance range of flat to up 2%. It still aims to open around 100 new stores in fiscal 2025.

"The next several months could be challenging but, if we navigate this well, then we expect to come out ahead," O'Sullivan said.

The US Court of International Trade on Wednesday blocked most of President Donald Trump's reciprocal tariffs announced last month. Trump recently agreed to extend his 50% tariff deadline for the European Union to July 9, while the US and China agreed earlier in May to suspend most duties on each other's goods for 90 days.

O'Sullivan said he doesn't believe that tariffs are going to change the long-term structural dynamics of the retail industry. "Whatever level tariffs settle at, vendors will adjust and relocate to the lowest cost source of production," he added.

For the ongoing quarter, Burlington anticipates adjusted EPS to come in between $1.20 and $1.30, while the market's current forecast is for $1.35. Sales are pegged to rise by 5% to 7%, with comparable store sales expected to be flat to up 2% year over year.