Burlington Stores 2026 Q1 Earnings Strong Performance as Net Income Rises 28%

Burlington Stores reported its fiscal 2026 Q1 earnings on May 29th, 2025. The company showcased a solid performance by exceeding expectations with a net income increase of 28% compared to the previous year. Burlington Stores also maintained its full-year guidance, anticipating adjusted earnings per share (EPS) between $8.70 and $9.30. The company's strategic initiatives, including new store openings and enhanced merchandising capabilities, are expected to drive long-term growth despite the challenges posed by tariffs and unpredictable economic conditions.

Revenue

Burlington Stores witnessed a 6.1% revenue growth in Q1 2026, recording $2.50 billion compared to $2.36 billion in Q1 2025. This growth was primarily driven by net sales, which reached $2.50 billion, complemented by additional revenue of $3.94 million. The overall revenue increase reflects Burlington's continued expansion and successful adaptation in an evolving retail landscape.

Earnings/Net Income

Burlington Stores' earnings per share (EPS) increased by 28.4%, reaching $1.58 in Q1 2026 compared to $1.22 in Q1 2025. This growth was aligned with the company's profitability, as net income rose to $100.83 million, marking a 28.4% increase from $78.51 million in the previous year. The EPS growth indicates a robust financial performance.

Price Action

The stock price of Burlington Stores experienced a decline of 10.88% on the latest trading day, while over the past week, it dropped by 11.81%. Despite these short-term fluctuations, the stock has seen a slight increase of 2.35% month-to-date, suggesting cautious optimism among investors.

Post-Earnings Price Action Review

The strategy of investing in Burlington Stores shares post-revenue announcement and holding them for 30 days resulted in underwhelming performance, yielding a -1.50% return, significantly lagging behind the benchmark return of 39.33%. This discrepancy led to an excess return of -40.83%, highlighting the strategy's inefficacy over the three-year period. The maximum drawdown of -58.20% underscores the high risk associated with this approach, and a Sharpe ratio of -0.01 indicates unfavorable risk-adjusted returns. These results reflect the challenges faced by Burlington Stores in maintaining investor confidence amid volatile market conditions.

CEO Commentary

Michael O’Sullivan, Chief Executive Officer, emphasized the 6% growth in total sales while acknowledging flat comp sales impacted by adverse weather conditions and delayed tax refunds. He noted the complexity and risks associated with tariffs, stressing the need for flexibility and adaptability. O’Sullivan remains optimistic about the long-term prospects for off-price retail, highlighting strategic initiatives such as Merchandising 2.0 and new store openings.

Guidance

Burlington Stores anticipates total sales growth of 6% to 8% for fiscal 2025, with comp store sales projected to be flat to 2%. The adjusted EBIT margin is expected to remain flat or increase by up to 30 basis points, and adjusted earnings per share are forecasted between $8.70 and $9.30. The company plans to open 100 net new stores in 2025, with capital expenditures estimated at $950 million, contingent on tariff, inflation, and ocean freight cost assumptions.

Additional News

Recently, Burlington Stores announced a significant expansion of its share repurchase program. As of May 20, 2025, the company's Board of Directors authorized up to an additional $500 million for stock buybacks, which can be executed through May 2027. This move reflects a strategic effort to enhance shareholder value and optimize capital allocation in light of current market conditions. Additionally, Burlington Stores is investing heavily in its supply chain infrastructure, acquiring new distribution centers in Georgia and California to support its ambitious store expansion plans and improve operational efficiency. These initiatives are part of Burlington's broader strategy to reach its long-term goal of 2,000 stores.