Executive Summary

• Burlington reported 4Q15 revenues of $1.5 billion, up 3.5% and in line with the consensus estimate. Comparable store sales increased by 0.1%, which was above the flat consensus expectation and above guidance.
• The company reported adjusted EPS of $1.49 for the quarter, up 4.3% from a year ago and beating both consensus of $1.46 and guidance of $1.44–$1.46. The upside was driven by strong performance in the home, beauty (which includes bath, cosmetics and fragrances), youth and missy sportswear categories.
• For 2016, the company expects comps in the low single digits and adjusted EPS of $2.62–$2.72, versus consensus of $2.72. Burlington expects revenue to increase by 6.5%–7.5%, implying sales of $5.43–$5.48 billion, versus the consensus of $5.43 billion.