Will Burlington Stores (BURL) Bounce Back?

Wedgewood Partners, an investment management company, released its “Focused SMID Cap Strategy” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned -14.1% compared to a return of -17.0% for the Russell 2500 Index. Since inception, the fund returned 10.3% compared to 4.9% for its benchmark index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

In the second quarter 2022 investor letter, Wedgewood Partners discussed stocks like Burlington Stores, Inc. (NYSE:BURL). Headquartered in Burlington, New Jersey, Burlington Stores, Inc. (NYSE:BURL) is an apparel products retailer. On September 28, 2022, Burlington Stores, Inc. (NYSE:BURL) stock closed at $116.84 per share. One-month return of Burlington Stores, Inc. (NYSE:BURL) was -18.75% and its shares lost 58.80% of their value over the last 52 weeks. Burlington Stores, Inc. (NYSE:BURL) has a market capitalization of $7.658 billion.

Here is what Wedgewood Partners specifically said about Burlington Stores, Inc. (NYSE:BURL) in its Q2 2022 investor letter:

“Burlington Stores, Inc. (NYSE:BURL) posted a difficult quarter of results, with comparable store sales (“comps”) declining -18%. The reported comp was against a steep year ago result that was boosted by stimulus spending, but the Company also was caught off-guard by dramatic short-term shifts in consumer behavior in the most recent quarter. 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, we think 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 has multiple levers to pull over the next several years that will lead to better returns, regardless of macroeconomic pressures.”

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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 Carillon Tower Advisers’ views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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