10 Best Clothing Stocks To Invest In Now

8. Burlington Stores, Inc. (NYSE:BURL)

Analyst Upside: 15.48%

Number of Hedge Fund Holders: 51

Burlington Stores, Inc. is an off-price retailer of branded apparel. It also sells accessories, footwear, and home merchandise for relatively lower prices. Its clothing section offers an elaborate array of fashion-focused, in-season merchandise, including women’s and men’s ready-to-wear apparel, youth apparel, baby clothing, coats, and more. The company operates more than 1007 stores, primarily under the brand name Burlington Stores.

The company is working on its new store opening program, which has been the primary driver of growth in its fiscal Q3 2024 earnings. Total sales for the company grew by 11% in fiscal Q3 2024, on top of 12% sales growth last year. It closed 15 stores, and is on the path to end 2024 with 101 net new stores.

However, the company’s comparable sales trend in fiscal Q3 2024 was significantly impacted by unseasonably warmer temperatures compared to last year. While its back-to-school season performance was positive, the sales trend dropped from mid-September onwards. If considered without the impact of the warm temperature, Burlington Stores, Inc. reported a healthy underlying comparable store sales growth.

Burlington Stores, Inc. has a conservative plan: it did not overreact to its strong back-to-school selling and managed to keep tight control over its liquidity and receipts. It thus reacted quickly to the warmer temperature headwinds, reflecting the company’s strong operational model. It expects to regain its positive sales growth with the coming of colder winter days and the holiday season in fiscal Q4 2024.