Burlington Stores Inc. Reports Strong Fourth Quarter and Full Year 2025 Earnings
March 5, 2026 – Burlington Stores, Inc. (NYSE: BURL), a leading off-price retailer known for offering high-quality apparel, footwear, and home merchandise at competitive prices, has released its financial results for the fourth quarter and full fiscal year ending January 31, 2026. The company reported impressive growth metrics, driven by robust comparable store sales and strategic margin management.
1. Strong Performance in the Fourth Quarter
Burlington's fourth quarter performance was marked by a total sales increase of 11%, reaching approximately $3.64 billion, compared to the same quarter in the previous fiscal year. This growth was complemented by a 4% increase in comparable store sales, following a notable 6% increase the previous year, resulting in a 10% two-year comparable sales stack.
CEO Michael O’Sullivan expressed satisfaction with the results, stating, “This sales and margin performance drove 21% earnings per share growth. This was a very strong performance in our largest quarter of the year.” The company's Adjusted EBIT margin improved by 100 basis points compared to the previous year, exceeding internal expectations by 50 basis points.
Fiscal 2025 Fourth Quarter Highlights
- Net Income: The company reported a net income of $310 million, or $4.84 per share, up from $261 million or $4.02 per share in the fourth quarter of Fiscal 2024.
- Adjusted Net Income: Adjusted net income, excluding certain expenses, rose to $320 million or $4.99 per share, compared to $267 million or $4.13 per share in the prior year.
- Gross Margin: The gross margin rate increased to 43.7%, up from 42.9% in the fourth quarter of Fiscal 2024, indicating a solid improvement driven by better merchandise margins and reduced freight expenses.
2. Full Year Fiscal 2025 Results
For the entire fiscal year, Burlington reported a 9% increase in total sales, building on an 11% increase in the previous year. Total net income for the year reached $610 million, or $9.51 per share, compared to $504 million, or $7.80 per share, in Fiscal 2024. Adjusted EBIT also saw significant growth, climbing to $923 million, representing an 80 basis points increase as a percentage of sales.
Key Full Year Metrics
- Adjusted EPS: The adjusted earnings per share rose to $10.17, a 22% increase from $8.35 in Fiscal 2024.
- Inventory Levels: Merchandise inventories stood at $1.31 billion, reflecting a 5% increase from the previous year, while comparable store inventories increased by 12%.
3. Strategic Initiatives and Challenges
Mr. O’Sullivan highlighted the company's proactive measures in response to tariffs introduced in April 2025. Actions taken to mitigate the adverse margin impact resulted in an 80 basis points increase in the Adjusted EBIT margin, showcasing the company's agility in navigating external challenges.
Looking Ahead: Fiscal 2026 Outlook
With an optimistic outlook for Fiscal 2026, Burlington expects total sales to increase between 8% and 10%, with comparable store sales projected to grow 1% to 3%. The company plans to open 110 net new stores and a new distribution center in Savannah, GA, reflecting its commitment to expanding its footprint and operational capabilities.
Mr. O’Sullivan stated, “We are feeling bullish about our prospects in Fiscal 2026,” indicating the company’s readiness to aggressively pursue sales growth. The anticipated Adjusted EPS for FY 2026 is projected to range between $10.95 and $11.45, compared to $10.17 in FY 2025.
Conclusion
Burlington Stores, Inc. has demonstrated a robust financial performance in its latest earnings report, with significant sales growth and improved margins despite external pressures. With plans for expansion and an optimistic outlook, the company is well-positioned to capitalize on future opportunities in the off-price retail sector. Investors and analysts alike will be watching closely as Burlington continues to execute its growth strategy in the coming fiscal year.
