11:09 AM EDT, 08/29/2024 (MT Newswires) -- Burlington Stores ( BURL ) reported stronger fiscal second-quarter sales than the market predicted while raising the midpoint of its full-year revenue guidance as the off-price retailer benefited from fewer items on clearance and new store openings.

Revenue climbed to $2.47 billion for the three months ended Aug. 3 from $2.17 billion the year earlier and topped the $2.42 billion average analyst estimate on Capital IQ. GAAP earnings per share advanced to $1.15 from $0.47 year over year. Four analysts were modeling for EPS of $0.84.

Comparable store sales grew 5%, nearly double the average expectation among eight analysts surveyed by Capital IQ. Both sales and comparable sales were "well ahead of our expectations," Chief Executive Michael O'Sullivan said in a statement.

"Our merchants are focused on offering really sharp value out of the gate at the initial ticketed price," O'Sullivan told analysts on a conference call, according to a Capital IQ transcript. "This is driving faster turns and lower markdowns. This means that there is less inventory making it to the clearance rank.

Another key driver of revenue growth was 36 net new store additions in the second quarter, he said.

For its fiscal 2024, Burlington is now guiding for a 9% to 10% increase in total sales, lifting the lower-end of its prior guidance from 8%. It now sees comparable store sales growth in the 2% to 3% range, up from flat to up 2% previously.

The consensus is for revenue of $10.59 billion in the ongoing year. Burlington lifted its adjusted EPS target to between $7.66 and $7.96, up from the $7.35 to $7.75 guidance range it gave at the end of May. Analysts are looking for $7.73 in normalized EPS this year.

"Based on our year-to-date performance, we are increasing our margin and earnings guidance for the full year, despite some incremental cost pressure from ocean freight," O'Sullivan said in the statement. "That said, there are some risks, so we are planning our business cautiously, and maintaining our comparable store sales guidance of 0% to 2% growth for the second half."

For the third quarter, the retailer is forecasting sales growth of 10% to 12% over the $2.29 billion it posted for the same period of 2023 and comparable sales in the flat to up 2% range. Analysts are modeling for revenue of $2.53 billion in the ongoing quarter. The company is expecting adjusted EPS between $1.45 and $1.55, compared with the $1.39 view.

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