Burlington Stores Inc. (BURL) plunged over 5% in pre-market trading on Friday, following the company's mixed fourth-quarter 2024 earnings report and cautious guidance for 2025 amid macroeconomic uncertainty.

The off-price retailer reported strong results for Q4 2024, with comparable store sales increasing 6%, well above guidance. However, the company struck a more cautious tone for 2025, projecting total sales growth of 6% to 8%, with comparable store sales growth of flat to 2% and operating margin expansion of flat to 30 basis points.

During the earnings call, Burlington's CEO Michael O'Sullivan cited an uncertain economic outlook and potential risks from policy changes, tariffs, and other external factors. He emphasized the need to plan and manage the business conservatively in the short term to remain nimble and react to volatility.

"We anticipate that in the short term, things could be volatile. There are external risks... which brings me back to my earlier point. As a business, we need to focus on what we can control. And that means planning our business cautiously, being nimble, flexible, and ready to react. And that's the approach that we're taking," O'Sullivan stated.

While Burlington's Q4 2024 performance was strong, driven by strategies to elevate its assortment and respond to shifting sales trends, the market appears to be reacting negatively to the company's cautious 2025 outlook and acknowledgment of potential headwinds. Investors may also be concerned about the potential impacts of policy changes and tariffs on the off-price retailer's business.