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Burlington Withdraws Guidance, Shuts Stores Amid Coronavirus Outbreak

Burlington Stores, Inc. (BURL), a discount clothing retailer, said Thursday that it is withdrawing its quarterly and full-year guidance due to the impact the Coronavirus is having on the retail sector.

“Given the uncertainty regarding the potential duration and impact of the virus on our store operations, the company is withdrawing the first quarter and full-year 2020 guidance issued on March 5, 2020, as well as suspending its share repurchase program,” Burlington said in a statement.

In addition, the retailer said it temporarily closed about 100 stores across the U.S. and will provide workers with financial support during a two-week period.

Thirteen out of sixteen analysts recommend investors buy Burlington stock, resulting in a consensus rating of a Strong Buy. The upside potential is over 90% based on an average price target of $246.33.  

Burlington said it began the fiscal year with about $400 million in cash, and earlier this week, augmented its cash balance by borrowing $400 million on its $600 million credit facility. (See Burlington’s Stock Analysis on TipRanks)

Sharon Wrobel
Sharon Wrobel is a journalist and writer with two decades of experience covering financial news in the U.S., Europe and the Middle East. Her work has appeared in global publications including The Financial Times, Bloomberg and The Jerusalem Post.

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