Burlington Stores Inc. (BURL) reported a smaller-than-expected loss for the second quarter, but sales tumbled 39% to fall short of estimates as stores were shuttered during the pandemic. The company swung to a loss of $46.8 million, or 71 cents a share, in the quarter, after income of $85 million, or $1.26 a share, in the year-earlier period. The company's adjusted per-share loss came to 56 cents, compared with a FactSet consensus for a loss of $1.06 a share. Sales fell to $1.010 billion, below the FactSet consensus of $1.126 billion. Sales in re-opened stores fell 14% from the date of reopening to end of the quarter. "The second quarter had some highs and some lows," Chief Executive Michael O'Sullivan said in a statement. "The pace of our re-opening sales significantly exceeded our expectations, and we turned our aged spring merchandise very rapidly." The company is expecting business to pick up as soon as it replenishes its inventory, but expects continued risk in the third quarter. It is not offering profit and sales guidance because of the uncertainty created by the pandemic. "We have plenty of liquidity and we will use this to support opportunistic buys of fall merchandise and of pack and hold inventory that we will flow to stores next year," said O'Sullivan. The company had $1.197 billion in liquidity at quarter-end. Shares were not yet active premarket, but have fallen 14% in the year to date, while the S&P 500 has gained 7.7%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
August 27, 2020 06:57 ET (10:57 GMT)
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