Burlington Stores (BURL) investor relations material

Executive summary

• Achieved 14% total sales growth and 6% comp store sales growth in Q1, with net sales reaching $2.85 billion, driven by new store openings and strong performance in warm weather categories.

• Adjusted EPS rose 26% year-over-year to $2.10, marking the 14th consecutive quarter of double-digit earnings growth and surpassing guidance.

• Net income increased to $115 million, with adjusted net income at $134 million, reflecting higher sales and improved gross margin.

• Opened 40 gross new stores (including 6 relocations) and closed 4, resulting in 30 net new stores and a total of 1,242 locations.

• Raised full-year guidance, now expecting 2%-4% comp sales growth and adjusted EPS of $11.45–$11.80, up 13%-16% year-over-year.

Financial highlights

• Q1 gross margin rate improved to 44.1% from 43.8% year-over-year, with merchandise margin up 20 basis points and freight expenses down 10 basis points.

• Adjusted EBITDA reached $284 million, up from $244 million last year.

• Adjusted EBIT margin was 6.3%, up 20 basis points year-over-year.

• Adjusted SG&A costs rose 20 basis points; SG&A as a percentage of net sales remained flat at 34.7%.

• Ended Q1 with $1.7 billion in liquidity, including $747 million in cash and $942 million in ABL availability, with no outstanding ABL borrowings.

Outlook and guidance

• Full-year 2026 total sales expected to rise 9%-11%, comp sales up 2%-4%, and adjusted EBIT margin to expand 10-30 basis points.

• Adjusted EPS guidance for 2026 is $11.45-$11.80, up 13%-16% year-over-year.

• Q2 guidance: comp sales up 1%-3%, total sales up 10%-12%, operating margin expansion of 30-60 basis points, and adjusted EPS of $2.05-$2.20.

• Capital expenditures for FY2026 are estimated at $875 million, with $445 million allocated to store investments and $290 million to supply chain initiatives.

• Management expects to open at least 100 net new stores per year, aiming for a long-term goal of 2,000 stores.