Burlington Stores, Inc.

What they do

Burlington buys first-quality, current, brand-name merchandise directly from manufacturers and other suppliers and sells it at up to 60% off other retailers' prices. Over 99% of net sales come from stores operated under the Burlington Stores name. The company follows off-price principles of opportunistic and in-season buying, which it says allows it to chase sales trends and shift purchases between suppliers and categories. Merchandise spans women's ready-to-wear, menswear, youth apparel, baby, beauty, footwear, accessories, home, toys, gifts and coats.

Revenue drivers

• Retail stores (Burlington Stores) — Over 99% of net sales are derived from company-operated Burlington Stores; the store base reached 1,287 locations in 47 states, Washington D.C. and Puerto Rico as of August 1, 2026.
• Apparel and fashion merchandise — Women's ready-to-wear, menswear and youth apparel are core categories, purchased opportunistically and in-season to chase sales trends.
• Non-apparel categories — Beauty, footwear, accessories, home, toys, gifts and coats broaden the assortment beyond apparel and are described as in-season, fashion-focused merchandise.
• Comparable store sales growth — Growth comes from a combination of new store openings and comparable store sales, which rose 2% in Q2 Fiscal 2026 on top of 5% in the prior year quarter.

Recent performance

Second quarter Fiscal 2026 total sales rose 11% to $2,998 million while comparable store sales increased 2%, on top of 10% total and 5% comp growth in the prior year quarter. Net income was $184 million, or $2.88 per diluted share, versus $94 million, or $1.47 per share, a year earlier. Gross margin rate was 46.2% versus 43.7%, an increase of 250 basis points, including the benefit of $55 million in tariff refunds; excluding refunds, merchandise margin expanded 70 basis points. Adjusted EPS excluding tariff refunds and bankruptcy acquired lease expenses rose 38% to $2.37, and Adjusted EBIT margin increased 100 basis points.

Strategy

Management is pursuing store expansion, stating a plan to open at least 100 net new stores per year and a long-term goal of operating 2,000 stores, with a preference for 25,000 square foot stores in busy strip malls. The company is also downsizing and relocating select existing stores to adopt new store designs and reduce occupancy costs. Merchandising priorities include opportunistic, in-season buying, localizing assortment by region and store, and growing merchandising talent. Other initiatives cover supply chain investment in purpose-built distribution centers, store redesign to emphasize the treasure hunt, and marketing that communicates value and drives traffic.

Risks

• Macroeconomic and inflation pressure — The company cites a high level of uncertainty in macroeconomic and geopolitical environments and says prolonged inflationary pressures could continue to negatively impact discretionary spending of its low-income customer base.
• Dependence on new store openings — Burlington states that its ability to find satisfactory locations is essential for continued growth, and openings depend on available locations and acceptable lease terms.
• Shrink and shortage — Store initiatives include shortage reduction through physical security solutions and technologies, indicating inventory shortage remains a cost pressure.
• Tariff refund volatility — The company received $55 million in tariff refunds in Q2 Fiscal 2026 and intends to invest them into sharper values, expecting the direct impact to be neutral to full year earnings.

Outlook

Management raised full year Fiscal 2026 Adjusted EPS guidance to $11.77 to $11.97, with comp growth of 3% to 4% and EPS growth of 16% to 18%. The company expects the direct impact of tariff refunds to be neutral to full year earnings because it intends to reinvest the refunds into sharper values in the back half of the year. For Fiscal 2026, Burlington plans to open at least 100 net new stores and had opened 91 new stores, including 12 relocations, through the six months ended August 1, 2026.