They Gave $55 Million Back To Customers

Burlington (BURL) got a $55 million windfall and gave it to customers.

Tariff refunds came back to the company and management passed the money through as lower prices instead of keeping it. The stock fell 6% that day and it hasn’t stopped falling.

Now look at the rest of that quarter.

Earnings came in at $2.96 against $2.19 expected, a 35% beat, with EBITDA beating by 22%.

Operating margin went from 5.4% to 12.3%. They raised full-year guidance and opened 149 new stores over the past year.

The CEO called it the 15th straight quarter of double-digit EPS growth.

The stock fell on a 0.8% revenue miss and a decision to hand money back to customers.

Now it's oversold.