Burlington Stores (BURL) Q4 2026 earnings summary

Executive summary

• Q4 2025 total sales grew 11% year-over-year to $3.64 billion, with comparable store sales up 4%, both above guidance and on top of strong prior-year results.

• Full year 2025 total sales increased 9% to $11.55 billion, comparable store sales rose 2%, operating margin expanded 80 basis points, and Adjusted EPS grew 22% to $10.17.

• Strategic actions in response to tariffs prioritized margin over sales, resulting in strong earnings growth despite some sales drag in home and holiday categories.

• Q4 net income was $310 million (diluted EPS $4.84); FY25 net income reached $610 million (diluted EPS $9.51).

• The outlook for 2026 is bullish, with raised comp guidance and expectations for both sales and margin expansion.

Financial highlights

• Q4 adjusted EBIT margin expanded 100 basis points to 12.1%, with adjusted EPS up 21% to $4.99; Adjusted EBITDA rose to $562 million.

• Q4 gross margin rate was 43.7%, up 80 basis points, driven by higher merchandise margin and lower freight expenses.

• FY25 Adjusted EBIT margin was 8.0%, up 80 basis points; Adjusted EBIT reached $923 million.

• Merchandise inventories at year-end were $1.31 billion, up 5% year-over-year.

• Repurchased $251 million in stock during 2025, with $385 million remaining on authorization.

Outlook and guidance

• FY26 guidance: total sales growth of 8%-10%, comp store sales up 1%-3%, and adjusted EPS of $10.95-$11.45 (up 8%-13%).

• 110 net new stores and a new distribution center planned for FY26; 60% of stores opening in the first half.

• FY26 capital expenditures expected at $875 million net of landlord allowances.

• Q1 FY26 guidance: total sales up 9%-11%, comp sales up 2%-4%, adjusted EPS of $1.60-$1.75.

• Operating margin expected flat to up 20 basis points for 2026, with Q1 margin down due to gross margin pressure, supply chain start-up costs, and lapping one-time 2025 savings.