Burlington Stores (BURL) Q2 2023 Financial Results Summary
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Burlington Stores (BURL) Q2 2026: Strong Sales and Earnings Growth — Positive Outlook
Burlington Stores, Inc. (NYSE: BURL) reported a robust second quarter for Fiscal 2026, with total sales increasing by $299.8 million, or +11% year-over-year (YoY), reaching $2,998 million. This growth comes on the heels of a 10% increase in the same quarter last year, showcasing the company's consistent performance in a competitive retail environment.
Key Financial Metrics
- Total Sales: $2,998 million, up $299.8 million or +11% YoY
- Comparable Store Sales: Increased by 2%, following a 5% increase last year
- Net Income: $184 million, compared to $94 million in Q2 2025, representing a 96% increase
- Diluted EPS: $2.88, up from $1.47 YoY
- Adjusted EPS: Increased 38% to $2.37, compared to a 39% increase last year
- Adjusted EBIT Margin: Increased by 100 basis points YoY
This quarter marks the 15th consecutive quarter of double-digit EPS growth for Burlington, reflecting the company's ability to convert sales growth into significant earnings expansion. The adjusted EBIT margin also improved, indicating effective cost management and operational efficiency.
Analyst View
This quarter is undoubtedly a positive outcome for shareholders. The substantial increase in net income and adjusted EPS demonstrates Burlington's strong operational performance and strategic initiatives. The company's decision to reinvest $55 million in tariff refunds back into the business, rather than taking a one-time boost to earnings, signals a commitment to long-term growth and customer value.
Furthermore, the increase in full-year adjusted EPS guidance to a range of $11.77 to $11.97, up from last year's $10.17, reflects confidence in continued growth. The anticipated comparable store sales growth of 3% to 4% for the full year also supports a favorable outlook.
Shareholder Returns and Guidance Changes
During the second quarter, Burlington repurchased 270,279 shares of its common stock for $87 million, with $218 million remaining under its current share repurchase program authorization. This move not only returns value to shareholders but also indicates management's confidence in the company's future performance.
The updated guidance for Fiscal 2026 includes:
- Total Sales Growth: Expected to increase by 10% to 11%
- Comparable Store Sales Growth: Anticipated to be in the range of 3% to 4%
- Adjusted EPS Growth: Projected to be between 16% to 18%
Forward Catalysts
Investors should keep an eye on the upcoming third quarter results, where Burlington expects total sales to increase by 9% to 11%, with comparable store sales growth projected between 1% to 3%. Additionally, the company anticipates a decrease in adjusted EBIT margin by 60 to 80 basis points, which could impact profitability metrics.
The strategic reinvestment of tariff refunds and the opening of approximately 115 net new stores are also critical factors to watch, as they could further enhance Burlington's market position and drive future growth.
In conclusion, Burlington Stores has delivered a strong performance in Q2 2026, and the outlook remains positive as the company continues to focus on growth and customer value. Shareholders can be optimistic about the company's trajectory as it navigates the retail landscape.
Here's the extracted data from the press release:
BURLINGTON STORES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited) (All amounts in thousands)
Note: The amounts in the tables are in thousands.
| Three Months Ended August 1, 2026 | Three Months Ended August 2, 2025 | Six Months Ended August 1, 2026 | Six Months Ended August 2, 2025 | |
|---|---|---|---|---|
| Net sales | $ 2,998,000 | $ 2,728,000 | $ 5,802,000 | $ 5,205,000 |
| Other revenue | 4,485 | 4,000 | 8,600 | 7,900 |
| Total revenue | $ 3,002,485 | $ 2,732,000 | $ 5,810,600 | $ 5,212,000 |
| Cost of sales | $ 1,617,000 | $ 1,548,000 | $ 3,238,000 | $ 2,942,000 |
| Selling, general and administrative expenses | 1,013,000 | 949,000 | 2,019,000 | 1,818,000 |
| Cost related to debt amortization and impairment | 114,000 | 94,000 | 218,000 | 186,000 |
| Charges | 3,577 | 1,500 | 4,300 | 2,000 |
| Long-term asset losses | (4,100) | (1,000) | (1,000) | (5,000) |
| Other income | (6,100) | (4,000) | (12,000) | (8,000) |
| Interest income | 19,600 | 17,000 | 36,000 | 33,000 |
| Interest expense | Total cost $ 2,764,000 | $ 2,596,000 | $ 5,413,000 | $ 4,964,000 |
| Income before income tax | 242,000 | 127,000 | 384,000 | 260,000 |
| Income tax expense | 57,800 | 33,000 | 85,000 | 65,000 |
| Net income | $ 184,000 | $ 94,000 | $ 299,000 | $ 195,000 |
| Diluted net income per common share | $ 2.88 | $ 1.47 | $ 4.67 | $ 3.05 |
| Weighted-average shares used to compute diluted net income | 63,900 | 63,000 | 64,000 | 63,000 |
BURLINGTON STORES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited) (All amounts in thousands)
| ASSETS | August 1, 2026 | January 31, 2026 | August 2, 2025 |
|---|---|---|---|
| Current assets: Cash and cash equivalents | $ 703,686 | $ 1,232,500 | $ 747,619 |
| Accounts receivable | 128,087 | 105,296 | 111,236 |
| Merchandise inventories | 1,541,300 | 1,311,900 | 1,414,800 |
| Assets held for disposal | 2,579 | 3,364 | 417 |
| Prepaid and other current assets | 214,546 | 118,444 | 299,960 |
| Total current assets | 2,590,250 | 2,771,500 | 2,574,000 |
| Property and equipment | 3,389,600 | 3,164,200 | 2,836,000 |
| Operating lease assets | 3,674,000 | 3,624,700 | 3,542,900 |
| Goodwill and intangible assets | 285,064 | 285,064 | 285,064 |
| Deferred tax assets | 2,139 | 2,139 | 2,248 |
| Other assets | 102,757 | 71,318 | 68,914 |
| Total assets | $ 10,043,643 | $ 9,919,000 | $ 9,309,200 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| Current liabilities: Accounts payable | $ 1,108,700 | $ 1,019,100 | $ 1,024,300 |
| Current operating lease liabilities | 448,652 | 425,468 | 392,865 |
| Other current liabilities | 632,393 | 734,000 | 656,713 |
| Current maturities of long-term debt | 20,144 | 70,591 | 19,896 |
| Total current liabilities | 2,209,890 | 2,249,200 | 2,093,774 |
| Long-term debt | 1,893,400 | 2,011,700 | 2,019,400 |
| Long-term operating lease liabilities | 3,543,900 | 3,497,300 | 3,406,500 |
| Other liabilities | 74,723 | 75,738 | 77,097 |
| Deferred tax liabilities | 319,657 | 277,771 | 265,603 |
| Stockholders' equity | 2,002,267 | 1,807,200 | 1,446,800 |
| Total liabilities and stockholders' equity | $ 10,043,643 | $ 9,919,000 | $ 9,309,200 |
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