That’s according to Burlington Stores CEO Michael O’Sullivan, who spoke to investors Thursday (Aug. 28) during the company’s quarterly earnings call. He added that the retailer is managing its business cautiously while remaining ready to “chase a stronger trend.”
“There are plenty of macroeconomic and other external variables that can have an impact on retail sales: higher unemployment, rising inflation, changes in consumer outlook,” O’Sullivan said. “For the back half of this year, all of those risks are real.”
“At a high level, I would say there are many experts and analysts who are predicting the tariffs are going to have a significant and potentially negative effect on the economy,” O’Sullivan added. “Those effects have not really happened yet, and they’re highly, highly unpredictable.”
Weather is another potential headwind. Because Burlington was formerly known as Burlington Coat Factory, it is affected by the weather being cold or warm, O’Sullivan said.
Today, the off-price retailer sells apparel, footwear, accessories and merchandise for the home.
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During the quarter ended Aug. 2, Burlington Stores saw year-over-year increases of 10% in total sales and 5% in comparable store sales, according to a Thursday earnings release.
O’Sullivan said during the call that the 10% gain in total sales followed a 13% gain last year.
He attributed the gains to the Burlington 2.0 initiatives the company has been pursuing in recent years, adding that these include changes in merchandising and stores and the impact of newly added stores.
“These double-digit growth rates demonstrate the power of our business to consistently take market share even in an uncertain retail environment,” O’Sullivan said.
PYMNTS reported Aug. 21 that the off-price retail sector’s core customer base of households that live paycheck to paycheck becomes more price sensitive when stressed by inflation, tariffs or stagnant wages.
TJX Cos., the parent company of T.J. Maxx, Marshalls and HomeGoods, reported Aug. 20 that it saw an 8% jump in its fiscal second-quarter sales. During an earnings call, the company’s management credited a “robust and broad-based increase in customer traffic.
Ross Stores, which owns Ross Dress for Less and dd’s Discounts, reported Aug. 21 that during the quarter ended Aug. 3, its total sales increased 5% year over year, while its comparable store sales were up 2%.
