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 from $78.5 million year-over-year, with diluted EPS of $1.58 and adjusted EPS up 18% to $1.67, ahead of guidance.

• Q1 EBIT margin increased 30 basis points; gross margin improved to 43.8% from 43.5% year-over-year, mainly due to better merchandise margins and lower freight costs.

• Management reaffirmed full-year 2025 guidance: comp sales flat to up 2%, total sales growth 6%-8%, and adjusted EPS $8.70-$9.30, despite increased uncertainty from tariffs and consumer spending trends.

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

Financial highlights

• Net sales: $2,500.1 million, up 6.1% year-over-year; adjusted EBITDA was $244 million, up from $217 million.

• Gross margin rate for Q1 was 43.8%, up 30 basis points year-over-year, with merchandise margin up 20 bps and freight expense down 10 bps.

• Adjusted EBIT margin was 6.1%, 30 bps higher than last year; adjusted net income was $107 million, or $1.67 per share.

• Comparable store inventories down 8% year-over-year; reserve inventory up to 48% of total inventory.

• Ended Q1 with $1.1 billion in liquidity, including $371 million in cash and $748 million in ABL availability.

Outlook and guidance

• Q2 guidance: total sales up 5%-7%, comp sales flat to +2%, adjusted EBIT margin down 30 bps to flat, adjusted EPS $1.20-$1.30.

• Full-year 2025: 100 net new store openings, capital expenditures expected at $950 million, and adjusted EPS guidance of $8.70–$9.30.

• Guidance assumes no tariff increases, modest inflation, and stable ocean freight costs.

• Management expects cash from operations, cash on hand, and credit facilities to cover capital needs for at least the next 12 months.