By Nicholas G. Miller

Burlington Stores reported higher third-quarter sales and raised its full-year outlook in the latest sign that consumers are flocking to off-price retailers due to concerns about inflation and the economy.

The off-price apparel retailer reported net income of $105 million, or $1.63 a share, up from $91 million, or $1.40 a share, the year prior.

Excluding certain expenses associated with bankruptcy acquired leases, adjusted earnings were $1.80 a share.

Total sales rose 7% to $2.71 billion. Wall Street expected $2.72 billion.

Comparable sales rose 1%. Analysts expected 2.6%.

The company raised its full-year adjusted earnings outlook to $9.69 to $9.89 a share, up from its previous forecast of $9.19 to $9.59 a share. Analysts see adjusted earnings of $9.57 a share.

It also guided for full-year total sales growth of 8%. It has previously forecast sales growth 7% to 8%.

"Traffic to our stores fell off significantly after the back-to-school period driven by unseasonably warm temperatures in our major markets. Our comp trend then picked up to mid-single-digits in mid-October once the weather cooled, and that strong trend has continued through the first three weeks of November," said Chief Executive Michael O'Sullivan.

Last week, TJX raised its full-year outlook and reported 5% comparable sales growth in its most recent quarter as it said it was winning over budget-conscious consumers.

UBS analysts said in a note Monday that the current consumer environment sets up off-price retailers like TJX and Burlington to overperform this holiday season. The analysts said the combination of relative personal financial strength with widespread concern about the path of the economy will push consumers to keep spending but be more price-conscious, boosting off-price retailers.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

November 25, 2025 07:12 ET (12:12 GMT)

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