Multiple Headwinds Impacted the Earnings of Burlington Stores (BURL) in the Third Quarter

Wedgewood Partners, an investment management company, released its “Focused SMID Cap Strategy” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -5.3% compared to a return of -2.8% for the Russell 2500 Index. Since inception, the fund returned 8.2% compared to 5.4% for its benchmark index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Wedgewood Partners highlighted stocks like Burlington Stores, Inc. (NYSE:BURL) in its 3Q 2022 investor letter. Headquartered in Burlington, New Jersey, Burlington Stores, Inc. (NYSE:BURL) is an apparel products retailer. On November 3, 2022, Burlington Stores, Inc. (NYSE:BURL) stock closed at $138.00 per share. One-month return of Burlington Stores, Inc. (NYSE:BURL) was 16.01% and its shares lost 53.67% of their value over the last 52 weeks. Burlington Stores, Inc. (NYSE:BURL) has a market capitalization of $9.045 billion.

Wedgewood Partners made the following comment about Burlington Stores, Inc. (NYSE:BURL) in its Q3 2022 investor letter:

“Burlington Stores, Inc. (NYSE:BURL) posted another difficult quarter of results, with comparable store sales (“comps”) declining -17%. The reported comp was also against a steep year ago result that was boosted by stimulus spending and post-pandemic reopening, but the Company has been caught off guard by dramatic short-term shifts in consumer behavior and found itself in more direct competition with major retailers in the near term. Further, inflation in the Company’s supply chain has more than offset the margin benefits of ample merchandise availability. While other off-price retailers have also been challenged recently, Burlington is further behind the maturity curve in fully embracing the off-price model, so it is not overly surprising that Burlington’s results have been weaker. The Company continues to possess multiple levers to pull over the next several years that will lead to better growth and returns, regardless of macroeconomic pressures.”

lan-deng-quddu_dZKkQ-unsplash

Burlington Stores, Inc. (NYSE:BURL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Burlington Stores, Inc. (NYSE:BURL) at the end of the second quarter which was 38 in the previous quarter.

We discussed Burlington Stores, Inc. (NYSE:BURL) in another article and shared Wedgewood Partners’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• Biggest Ecommerce companies in the US
• Harvard University’s Stock Portfolio
• 10 Best Rebound Stocks To Buy

Disclosure: None. This article is originally published at Insider Monkey.