Burlington Stores (BURL) investor relations material

Executive summary

• Q2 2026 delivered strong results with total sales up 11% year-over-year to $2.998 billion, driven by robust new store growth and a 2% increase in comparable store sales.

• Net income more than doubled to $184.3 million, with diluted EPS of $2.88 and adjusted EPS up 38% to $2.37, reflecting improved gross margin and tariff refunds.

• $55–$55.5 million in tariff refunds were received and fully reinvested into customer value, resulting in a neutral impact on full-year earnings.

• Record new store expansion: 91 new stores opened in Q2 (including relocations), 178 gross new stores in 12 months, and 149 net new stores.

Financial highlights

• Gross margin rate improved to 46.2% from 43.7% year-over-year, aided by tariff refunds and merchandise margin expansion.

• Adjusted EBIT margin increased 100 basis points; adjusted EBITDA for Q2 was $375.3 million, up $129.6 million year-over-year.

• Q2 adjusted EPS was $2.37, up 38% year-over-year, and diluted EPS was $2.88.

• Inventory increased to $1.541 billion, reflecting new store openings and higher comparable store inventory.

• Liquidity at quarter-end was $1.6 billion, with $704 million in cash and no ABL borrowings.

Outlook and guidance

• FY 2026 total sales expected to rise 10–11%, with comp store sales up 3–4%.

• Adjusted EPS guidance raised to $11.77–$11.97, up 16–18% from FY 2025.

• Plans to open approximately 115 net new stores and invest $875 million in capital expenditures.

• Q3 and Q4 comp sales guided to 1–3% growth; total sales up 9–11% in Q3 and 7–9% in Q4.

• Planned reinvestment of tariff refunds will lower Q3 and Q4 margins, but underlying EBIT margin guidance (excluding refunds) is unchanged.