Burlington Stores (BURL) Q3 2026 earnings summary

Executive summary

• Q3 total sales grew 7% year-over-year to $2.71 billion, with comparable store sales up 1% and net income rising to $105 million, driven by new store openings and improved gross margin.

• Adjusted EPS increased 16% to $1.80, and adjusted EBIT margin rose 60 basis points year-over-year, exceeding guidance.

• Weather impacted cold weather categories, but trends improved as temperatures cooled in October and November.

• 104 net new stores are planned for FY25, with 73 net new stores opened in Q3 and a total of 1,211 stores at quarter-end.

• Strong margin and earnings performance attributed to effective merchandising and cost management.

Financial highlights

• Q3 gross margin rate was 44.2%, up from 43.9% year-over-year, driven by higher merchandise margin and lower freight expenses.

• SG&A as a percentage of net sales decreased to 35.0%, with adjusted SG&A at 26.7% of net sales.

• Adjusted EBITDA was $266 million, up from $229 million in Q3 2024.

• Liquidity at quarter-end was $1.53 billion, with $584 million in cash and no ABL borrowings.

• Inventory increased to $1.66 billion, primarily due to new stores and higher reserve inventory; comparable store inventories decreased 2%.

Outlook and guidance

• Full-year 2025 adjusted EPS guidance raised to $9.69–$9.89, up 16%-18% year-over-year.

• Full-year sales expected to grow ~8%, with comparable store sales up 1–2%.

• Q4 comp store sales guidance maintained at flat to up 2%, with total sales expected to rise 7%-9%.

• FY26 planning for high single-digit total sales growth, at least 110 net new stores, and comp sales flat to up 2%.

• Capital expenditures for fiscal 2025 are estimated at $950 million, with $445 million for stores and $415 million for supply chain initiatives.