Burlington Stores (BURL) investor relations material

Executive summary

• Total sales rose 10% year-over-year to $2.7 billion in Q2, with comparable store sales up 5% and net income reaching $94.2 million, driven by new store openings and improved margins.

• Adjusted EPS increased 39% to $1.72, with operating margin expanding by 120 basis points year-over-year.

• Performance attributed to Burlington 2.0 initiatives, merchandising improvements, and supply chain optimization.

• The company opened 44 new stores (including 8 relocations) and closed 6 in the first half, reaching 1,138 stores, with a year-end target of 100 net new stores.

• Full-year guidance for sales, margins, and EPS was raised, while maintaining a cautious outlook due to external risks.

Financial highlights

• Q2 net sales: $2.7 billion, up 10% year-over-year; net income: $94.2 million, up from $73.8 million.

• Gross margin improved to 43.7%, up 90 basis points, driven by higher merchandise margin and lower freight expense.

• Adjusted EBITDA for Q2 was $257 million, up from $205 million a year ago.

• Inventory at quarter-end was $1.41 billion, with comparable store inventories down 8% and reserve inventory up 43%.

• Liquidity at quarter-end was $1.7 billion, including $748 million in cash and $946 million ABL availability.

Outlook and guidance

• Full-year adjusted EPS guidance raised to $9.19–$9.59, with sales expected to grow 7–8% and comparable store sales up 1–2%.

• Plans to open 100 net new stores in fiscal 2025 and invest approximately $950 million in capital expenditures.

• Q3 comp sales guidance flat to 2%, total sales up 5–7%, EPS $1.50–$1.60.

• Guidance incorporates incremental tariff pressures, with most but not all offset by cost actions.

• Management expects continued margin improvement through operational flexibility and supply chain investments.