BURL - Embedded Expectations Analysis - 2020 06 16
Burlington Stores, Inc. (BURL:USA) trades above historical averages relative to Uniformearnings, with a 68.5x Uniform P/E, implying bullish expectations for the firm. However, management may have concerns about their off-price model, new store investments, and the impact of coronavirus on retail
Specifically, management may lack confidence in their ability to maintain their historical results, sustain higher average ticket prices, and control liquidity. In addition, they may be exaggerating their off-price model's ability to react quickly to retail disruptions and the progress of their business expansion and development investments. Moreover, they may lack confidence in their ability to improve their value proposition to customers, mitigate sales traffic seasonality, and execute the critical components of their off-price model. Furthermore, they may have concerns about the impact of coronavirus on the retail industry, their accelerated capex spend, and the sustainability of their new store performance
Burlington Stores is a holding company. Through its indirect subsidiary, Burlington Coat Factory Warehouse Corporation sells merchandise including: women's ready-to-wear apparel, accessories, footwear, menswear, youth apparel, baby, home, coats, beauty, toys and gifts. The company operates stores under the names Burlington Stores, Cohoes Fashions, Super Baby Depot, MJM Designer Shoes and an online store. Cohoes Fashions provides products similar to those offered by Burlington Stores. MJM Designer Shoes provides moderately priced designer and fashion shoes. The Super Baby Depot stores provides baby clothing, accessories, furniture and other merchandise in the middle to higher price range.
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