Burlington Stores 2026 Q3 Earnings Net Income Surges 15.6% as Revenue Hits $2.71 Billion

Burlington Stores (BURL) reported mixed post-earnings price action, with shares declining despite strong revenue and earnings growth. The company raised full-year guidance, reflecting confidence in margin expansion and store expansion, while analysts remain cautiously optimistic about long-term prospects.

Revenue

Burlington Stores’ total revenue for Q3 2026 reached $2.71 billion, a 7.1% increase from $2.53 billion in the prior year. This growth was driven by robust net sales of $2.71 billion, which accounted for nearly all of the company’s top-line performance. Additional revenue streams, including other income, contributed $4.44 million, though this segment saw a marginal decline compared to the previous year.

Earnings/Net Income

Earnings per share (EPS) surged 16.1% to $1.66, outpacing net income growth of 15.6% to $104.75 million. The EPS growth rate exceeded net income expansion, signaling improved operational efficiency and cost management.

Post-Earnings Price Action Review

The strategy of buying BURL shares 30 days after a quarterly earnings beat has historically delivered strong returns, with a 74.60% cumulative gain over three years versus a 65.99% benchmark. This approach yielded a 20.59% compound annual growth rate (CAGR), with minimal drawdowns and a Sharpe ratio of 0.53, highlighting its risk-adjusted appeal. Despite recent volatility, the strategy’s performance underscores confidence in the stock’s long-term potential.

CEO Commentary

CEO Michael O’Sullivan highlighted Q3’s 7% sales growth, driven by new store openings and disciplined pricing, while acknowledging weather-related disruptions to cold-weather categories. He emphasized margin expansion and supply chain efficiencies as key enablers of profitability amid tariff pressures.

Guidance

For Q4 2025, the company expects comp sales growth of 0%–2% and total sales of +7%–+9%, with adjusted EBIT margin expansion of 30–50 bps. Full-year 2025 guidance includes comp sales of +1%–+2%, total sales growth of 8%, and EPS of $9.69–$9.89. For 2026, Burlington plans to open 110+ net new stores, target high single-digit sales growth, and maintain conservative comp guidance.

Additional News

Recent developments include analyst activity and stake adjustments. Jefferies lowered BURL’s price target to $330 from $350, citing underperformance relative to peers, while maintaining a “Buy” rating. Eisler Capital Management reduced its stake by 46.1% in Q2, and Ensign Peak Advisors cut holdings by 16.4%. Institutional ownership remains strong, with 14 “Buy” ratings from analysts and an average price target of $344.14.