Burlington CEO Sees ‘Challenges and Opportunities’ Ahead for Off-Price Retail

Burlington CEO Michael O’Sullivan informed the consumer and investors on the situation of the industry during the first quarter conference call of the retailer on Thursday, given that even a year ago with the results, comparable sales of off-pris retailers have slowed down since the last quarter of 2024.

O’Sullivan stated that the Burlington (Berl) sales figures showed “wide recession in business areas with various demographic characteristics”.

He said, “This is just a quarter, so it is too early to say if we saw the recession from (the fourth quarter) to (first quarter), it is the beginning of a wider pulback in consumer expenses,” he said, according to a transcript provided by alpassions.

O’Sullyan said that economists are eyeing the possibilities of recession in 2025 and warning that tariffs could awaken inflation. Burlington has experienced his business “carefully and flexibility managed,” he said, but “somewhat concerned about macroeconomic indicators.”

He said that Burlington generally benefits from disruptive events, such as extreme weather, port attacks and financial crises, as they manufacture additional inventory companies such as their trust. But almost tariffs of more than 100% tariffs between China and America, he said, which is now recovering that import taxes have decreased. After a business court pronounced the verdict on Wednesday, more changes may be further that the administration has 10 days to collect several tariffs.

O’Sullyan said, “Some goods are likely to decrease in some goods categories due to the instability of this stop/start surge, but it can also cause additional supply to others.” “We look at both risk and opportunities in the next months.”

As the business policy stabilizes, producers will migrate -within a one or two years -in two countries, in two countries, incorporating tariffs, incorporating tariffs, O’Sullyan said, and import tax will become “just one more thing”.

“They are going to create uncertainty in the short term, which we will navigate,” O’Sullyan said. “But they are unlikely to affect long -term structural trends in our industry.”

The retailer reported $ 1.67 in adjusted income per share, crossing the analyst expectations for the first quarter. Burlington hopes that the tariffs will put “significant pressure” on their margins, but confirmed the entire year’s approach shared in the last quarter.