Jim Cramer’s Game Plan: 13 Stocks in Focus

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

Number of Hedge Fund Holders: 51

Talking about Burlington Stores, Inc. (NYSE:BURL), Cramer said:

“Now we’ve seen a bunch of retailers’ reports not sweating numbers yet in many cases, their stocks still roared. Meanwhile, others like Target get clubbed like baby seals. It’s treacherous to start buying these now because many of these stocks have run mightily in the last few days… TJX and Ross Stores both reported good numbers and I doubt that Burlington Stores will be any different. Well, that makes for a terrific trade.”

Burlington Stores (NYSE:BURL) is a retailer that offers a variety of branded merchandise. The company operates under the Burlington Stores and Cohoes Fashions brand names. As a nationally recognized off-price retailer, it achieved fiscal 2023 net sales of $9.7 billion. During the first six months of fiscal 2024, the company saw a 12% increase in total sales compared to the same period in fiscal 2023. In addition, net income surged by 139%, reaching $152 million, or $2.37 per share, up from $0.98 per share in the prior year.

Burlington Stores (NYSE:BURL) is set to report third-quarter earnings on November 26. For the quarter, the company expects total sales to rise between 10% and 12%. This projection assumes that comparable store sales will increase by 0% to 2% compared to the third quarter of fiscal 2023. The company also anticipates a growth of 60 to 80 basis points in its adjusted EBIT margin and expects adjusted EPS to be between $1.45 and $1.55, up from the adjusted EPS of $1.10 in the same quarter last year.