05/04/2023
Discounters were the clear winner out of retailers this earnings season with Dollar Tree, Ross, and Burlington all posting YOY sales growth positioning them well to take advantage of high end brands filing for bankruptcy and closing locations.
"Despite inflation pressuring its core customers’ wallets, Burlington, an off-price retailer, told investors that it expected sales for its fiscal year, which will end in February, to increase 12 to 14 percent, above Wall Street’s expectations. Other retailers’ financial woes are a boon for Burlington, according to its chief executive, Michael B. O’Sullivan.
“For us, the biggest source of new store locations comes from other retailers closing stores,” Mr. O’Sullivan said on a call with analysts. “So many of our most productive locations were formerly Circuit City or Toys ‘R’ Us or Sports Authority or Linens & Things. In other words, if there’s an increase in retail bankruptcies, then that’s going to drive real estate opportunities and new store opening opportunities for us.”
Franklin Street Franklin Street
Despite better-than-expected earnings, retail executives predict that any sales growth will be much smaller than in years past.
