Burlington Stores Inc. shares sank 11.6% in pre-conference trading, as the retail company announced lower-than-expected two-quarter earnings as it observed a slowdown in traffic in its stores.
The US company reported net profit of $ 121.6 million or $ 1.80 per share for the quarter, down from $ 155.9 million or $ 2.33 per share a year ago, also lower than convergent estimates for $ 2.772 billion.
Comparable sales increased 6%, compared to estimates for an increase of 9.7%.
“Under normal circumstances, we would be happy with a 6% increase in the fourth quarter, but compared to the rest of 2021 this is a slowdown in our trend,” said CEO Michael O’Sullivan.
The slowdown is partly due to lower traffic, “due to a number of external factors,” he said.
He added that the outlook for retail spending in 2022 is “extremely unpredictable” as the company bypasses government stimulus programs and faces inflation.
It is expected to open 120 new stores in 2022 and close or transfer 30.
Source: Capital
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