Burlington Stores (BURL) Q1 2026 earnings summary

Executive summary

• Net sales rose 6.1% year-over-year to $2.5 billion in Q1 FY2025, driven by 94 net new stores, with comparable store sales flat at the midpoint of guidance.

• Net income increased to $101 million, with adjusted EPS up 18% to $1.67 and EBIT margin up 30 basis points year-over-year, both ahead of guidance.

• Management reaffirmed FY2025 guidance, expecting comp sales flat to up 2% and total sales growth of 6%-8%, despite tariff and macroeconomic uncertainties.

• 14 new stores opened (including 4 relocations), 3 closed, bringing total to 1,115 as of May 3, 2025.

• Ongoing initiatives include leaner inventories, supply chain optimization, and disciplined real estate expansion.

Financial highlights

• Gross margin rate improved to 43.8%, up 30 basis points year-over-year, driven by higher merchandise margin and lower freight expense.

• Adjusted EBIT margin reached 6.1%, up 30 basis points year-over-year.

• Adjusted EBITDA was $244 million, up from $217 million, a 50 basis point increase as a percentage of sales.

• Adjusted EPS was $1.67, an 18% increase year-over-year.

• Liquidity at quarter-end was $1.12 billion, including $371 million in cash and $748 million in ABL facility availability.

Outlook and guidance

• FY2025 guidance: total sales growth 6%-8%, comp sales flat to +2%, adjusted EBIT margin flat to +30 basis points, adjusted EPS $8.70-$9.30.

• Q2 sales expected to grow 5%-7%, with comp sales flat to +2% and adjusted EPS guidance of $1.20-$1.30.

• Plans to open approximately 100 net new stores in FY2025, targeting long-term expansion to 2,000 stores.

• Capital expenditures for FY2025 estimated at $950 million, with $445 million for stores and $415 million for supply chain initiatives.

• Guidance assumes stable tariff rates, modest inflation, and no material increase in ocean freight costs.