Off-price retailer Burlington reported solid first-quarter earnings and maintained its future outlook for the full fiscal year amid tariff concerns.
Burlington saw its total sales rise by 6% to $2.5 billion, while its net income reached $101 million compared to $79 million in the year prior.
The off-price retailer achieved earnings per share of $1.67, up from $1.42 in the year prior.
The company maintained its confidence in successfully navigating the impact of tariffs, which is working in the favor of off-price retailers.
Michael O’Sullivan, Burlington’s CEO, commented: “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 P&L.”
Burlington maintained its future outlook and expects total sales to grow by between 6% and 8% and comparable sales to increase by between 0% and 2%.
The retailer also expects to achieve adjusted earnings per share of between $8.70 and $9.30.
O’Sullivan added: “Whatever level tariffs settle at, vendors will adjust and relocate to the lowest cost source of production.
“We do not believe that tariffs are going to change the longer-term structural dynamics of the retail industry. These dynamics are driving the growth of off-price retail and our business.”
Burlington operates around 1,115 locations across the US and plans to open 100 new stores in the current fiscal year. In February, Burlington purchased 45 of Joann’s leases to expand its retail footprint.
Other off-price retailers are also planning mass expansion to meet growing demand for discounted goods, with TJX planning to open 130 stores in 2025.
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