Burlington Stores (BURL) Q2 2025 earnings summary

Executive summary

• Net sales in Q2 2024 grew 13.4% year-over-year to $2.46 billion, with comparable store sales up 5% and 36 net new stores opened, reaching 1,057 locations.

• Net income increased to $74 million, or $1.15 per diluted share, more than doubling from Q2 2023, driven by higher sales, improved gross margin, and SG&A leverage.

• Adjusted EPS for Q2 was $1.24, a 98% increase over last year and above guidance.

• Strong regular price selling, faster inventory turns, and lower markdowns drove profitability, with broad-based strength across apparel, home, beauty, and accessories.

• The company opened 76 new stores (including 15 relocations) and closed 11 stores in the first half of 2024.

Financial highlights

• Gross margin rate for Q2 was 42.8%, up 110 basis points year-over-year, driven by a 90 basis point increase in merchandise margin and lower freight expense.

• Adjusted EBIT margin expanded by 160 basis points year-over-year to 4.8%.

• Adjusted EBITDA for Q2 2024 was $205 million, up from $143 million, a 170 basis point increase as a percentage of sales.

• Cash and equivalents at quarter-end were $660 million, with total liquidity of $1.48 billion.

• $61 million in common stock repurchased during Q2; $380 million remains on repurchase authorization.

Outlook and guidance

• Full-year 2024 comp sales expected to increase 2%-3%; total sales to rise 9%-10%.

• Full-year adjusted EBIT margin now expected to increase 50-70 basis points; adjusted EPS guidance raised to $7.66-$7.96.

• Q3 guidance: comp sales flat to +2%, total sales up 10%-12%, EPS $1.45-$1.55.

• Capital expenditures for FY24 projected at $750 million, with about 100 net new store openings.

• Ocean freight headwind of ~$0.10 EPS expected in the back half due to higher spot rates.