Burlington Stores 2026 Q1 Earnings Strong Growth as Net Income Rises 28.4%

Burlington Stores (BURL) reported its fiscal 2026 Q1 earnings on May 30th, 2025. The company exceeded expectations with net income growing by 28.4% to $100.83 million, surpassing previous year figures. Burlington maintained its full-year guidance, projecting total sales growth of 6% to 8% for fiscal 2025. The company plans to open 100 new stores, further demonstrating confidence in its market expansion strategy. Despite the challenging retail environment and potential tariff impacts, Burlington's proactive cost management and strategic initiatives have positioned it well for sustained growth.

Revenue

Burlington Stores experienced a revenue increase of 6.1% in fiscal 2026 Q1, reaching $2.50 billion compared to $2.36 billion in 2025 Q1. Net sales accounted for the majority of revenue, contributing $2.50 billion, while other revenue added $3.94 million to the total. This growth reflects the company's ability to effectively capitalize on market opportunities.

Earnings/Net Income

Burlington Stores experienced robust growth in its earnings per share, rising by 30.1% to $1.60 in 2026 Q1 from $1.23 in 2025 Q1. The company's net income also showed significant improvement, increasing 28.4% to $100.83 million from $78.51 million in the previous year. This solid EPS performance indicates strong financial health and effective cost management.

Price Action

The stock price of Burlington Stores has edged up 0.22% during the latest trading day, has tumbled 11.90% during the most recent full trading week, and has edged up 0.28% month-to-date.

Post-Earnings Price Action Review

The approach of buying Burlington Stores (BURL) stock following a revenue miss and retaining it for 30 days resulted in a 14.01% return, which notably underperformed compared to the benchmark return of 83.88%. Despite the strategy's moderate returns, it involved substantial risk, evidenced by a Sharpe ratio of 0.06 and a maximum drawdown of -68.70%. Investors considering this strategy should weigh the potential for high risk against the likelihood of moderate returns. The company’s performance highlights the importance of evaluating market conditions and strategic decisions before investing, as the observed underperformance suggests a need for cautious analysis and potentially diversified investment strategies.

CEO Commentary

Michael O’Sullivan, Chief Executive Officer, highlighted that total sales grew by 6% with a flat comp sales performance, which he deemed unsatisfactory. He emphasized a proactive approach to margin and expense savings in anticipation of tariff impacts, stating, “We began to aggressively go after margin and expense savings opportunities.” O’Sullivan noted the importance of flexibility in navigating external uncertainties, particularly regarding tariffs and consumer behavior, asserting, “We think it is very important to look through the short-term disruption caused by tariffs.” He expressed optimism about the long-term prospects for off-price retail, anticipating market share growth despite current challenges.

Guidance

Burlington Stores expects total sales growth of 6% to 8% for fiscal 2025, with adjusted EPS guidance in the range of $8.70 to $9.30. The company anticipates comp store sales to remain flat to up 2%, maintaining its earlier guidance. Capital expenditures are projected to be approximately $950 million. Key assumptions include that current tariff rates remain unchanged and that inflationary impacts are modest. The company aims to open 100 net new stores in 2025, with most openings targeted for the latter half of the year.

Additional News

Burlington Stores recently authorized a significant expansion of its share repurchase program, with the board approving up to an additional $500 million in buybacks, set to be executed through May 2027. This strategic decision aligns with the company’s ongoing efforts to enhance shareholder value. In another development, Burlington Stores has announced plans to open a new distribution center in Georgia, reflecting its commitment to strengthening its supply chain capabilities. Additionally, the company is focusing on optimizing its existing store operations to improve efficiency and customer experience. These initiatives are part of Burlington’s broader strategy to fortify its market position in the competitive retail landscape.