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 productivity initiatives.

• Q1 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 $114.7 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, reflecting Q1 outperformance.

Financial highlights

• Q1 gross margin rate was 44.1%, up from 43.8% year-over-year, driven by higher merchandise margin and lower freight expenses.

• Adjusted EBIT margin for Q1 was 6.3%, up 20 basis points, exceeding guidance.

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

• Q1 adjusted net income was $134 million, with adjusted EPS of $2.10.

• Comparable store inventories increased 10%–11% year-over-year, with total inventory at $1.44 billion.

Outlook and guidance

• FY2026 total sales expected to grow 9%-11%, comp sales 2%-4%, and adjusted EPS $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.

• Plans to open approximately 115 net new stores and invest $875 million in capex for FY2026.

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

• Liquidity is expected to remain strong, supported by cash from operations and an undrawn ABL Line of Credit.