Burlington Stores (BURL) is positioned to gain market share and see upside to second-half sales from better assortment and pricing investments, BofA Securities said in a report Friday.
The investment firm raised its fiscal 2026 earnings estimate by 1% to $11.88 per share following Burlington's fiscal Q2 "beat." It lowered the fiscal 2027 estimate by 4% to $13.08 on a "lower margin outlook" as the company laps tariff-related refunds and "pricing investments."
BofA said improved availability of "home" products could provide upside in fiscal Q3. It added that higher "inventory levels" reflect several one-time factors and assortment opportunities rather than a change in long-term strategy. Burlington is also investing tariff refunds into lower prices to "drive higher traffic and conversion".
The brokerage added that the company's turnaround momentum and favorable off-price retail trends should support continued outperformance.
BofA reiterated its buy rating on Burlington and cut its price target to $365 from $375.
Shares of Burlington were down nearly 4% in Friday trading.
Price: $278.56, Change: $-11.44, Percent Change: -3.94%