Burlington Stores misses Q1 expectations despite doubling profit

US retailer Burlington Stores missed its own expectations in the first quarter of the year despite doubling net profit and reporting an 11 percent increase in sales.

Net sales at the off-price chain increased to 2.13 billion dollars in the three months to April 29 - but the company had expected growth of between 12 percent and 14 percent.

On a comparable basis, sales were up 4 percent, compared to its previous guidance of between 5 percent and 7 percent.

“Our first quarter comparable sales growth came in just below guidance,” CEO Michael O’Sullivan told investors.

He said the company got off “to a very strong start” in the quarter, but then the trend “fell off” in March, which the company believes was driven by lower tax refunds and cooler weather leading up to Easter.

However, O’Sullivan noted the company has seen a “nice pick-up in our trend” since mid-April.

Burlington Stores managed to double its net profit in the quarter to 32.7 million dollars from 16.2 million dollars the prior year.

Adjusted earnings per share (EPS), meanwhile, came in at 0.84 dollars compared to 0.54 million dollars a year earlier - but the company had expected adjusted EPS in the range of 0.85 dollars to 0.95 dollars.

Burlington Stores reiterated its full-year outlook, expecting sales growth in the range of 12 percent and 14 percent, and adjusted earnings per share in the range of 5.50 dollars and 6 dollars.

O’Sullivan said: “We see plenty of uncertainty and we remain concerned about the economic health of the lower-income shopper, but we also see some potential tailwinds.

“The supply environment remains very strong and with our focus on value, we believe that we are well positioned to achieve this full year guidance.”