Burlington Stores (BURL) saw its stock plummet 5.27% during intraday trading on Thursday, as investors reacted to the company's disappointing second-quarter guidance and concerns about tariff pressures. The off-price retailer's shares took a hit despite reporting better-than-expected first-quarter earnings.

While Burlington's Q1 adjusted earnings per share of $1.67 beat analyst estimates of $1.41, the company's outlook for the second quarter fell short of expectations. Burlington forecasts Q2 adjusted EPS of $1.20-$1.30, below the consensus estimate of $1.35. This guidance, coupled with flat comparable store sales in Q1, appears to have dampened investor enthusiasm.

Adding to the bearish sentiment, CEO Michael O'Sullivan warned of significant pressure on merchandise margins due to tariffs. "We anticipate that tariffs will put significant pressure on our merchandise margin, but we are confident that, as long as tariffs do not increase from current levels, we can offset this pressure elsewhere in the P&L," O'Sullivan stated. This cautionary tone regarding tariffs seems to have heightened investor concerns about the company's future profitability.