Burlington Stores: Huge Upside, but High Risk

As Amazon.com has upended the retail landscape, off-price chains have been among the few retailers to continue posting steady sales and earnings growth. Ross Stores (NASDAQ: ROST) has been especially reliable for the past few years, routinely posting comp-sales growth of about 4% and operating margins of at least 13%.

Meanwhile, Burlington Stores (NYSE: BURL) has been an also-ran of the off-price industry for many years. Despite using many of the same techniques as its larger rivals, it lags far behind them in terms of margin performance.

Burlington is not as profitable as its main off-price rivals. Image source: Burlington Stores.

Source: Fool.com