Burlington Stores, Inc. Outperforms Second Quarter Expectations

Burlington Stores, Inc. (NYSE: BURL) has reported a robust second quarter for 2025, surpassing earnings expectations and showcasing significant growth in sales and margins. The company has also revised its full-year guidance upward, reflecting confidence in its strategic initiatives.

Burlington Stores, Inc. Reports Better-than-Expected Second-Quarter Results

In the second quarter of 2025, Burlington Stores, Inc. demonstrated impressive financial performance, exceeding both revenue and earnings expectations. The company reported total sales of $2.701 billion, marking a 10% increase compared to the same period last year. This growth was driven by a 5% rise in comparable store sales, maintaining momentum from the previous year’s 5% increase. The company’s diluted earnings per share (EPS) stood at $1.47, outpacing the anticipated EPS of $1.27. Adjusted EPS, which excludes certain expenses, rose by 39% to $1.72, further highlighting the company’s strong operational performance.

The company’s net income reached $94 million, a significant increase from $74 million in the second quarter of 2024. Burlington’s adjusted EBIT margin improved by 120 basis points, benefiting from higher merchandise margins, reduced freight expenses, and efficient management of selling, general, and administrative (SG&A) expenses. The gross margin rate also saw a positive shift, increasing to 43.7% from 42.8% in the previous year, driven by lower markdowns and improved freight costs.

Burlington’s performance exceeded the market’s expectations, with revenue surpassing the anticipated $2.63 billion. The results were attributed to the successful implementation of the company’s strategic initiatives and the continued strength of its business model, which focuses on offering high-quality, branded merchandise at competitive prices.

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Burlington Stores Revises Full-Year Guidance

Looking ahead, Burlington Stores has revised its full-year guidance, reflecting confidence in its strategic direction and operational capabilities. The company now expects adjusted EPS for the fiscal year 2025 to range between $9.19 and $9.59, up from the previous guidance. This adjustment excludes anticipated expenses related to bankruptcy-acquired leases. Additionally, Burlington anticipates total sales growth of 7% to 8% for the year, building on the 11% increase recorded in fiscal 2024. Comparable store sales are projected to rise by 1% to 2%, consistent with the company’s off-price retail strategy.

For the third quarter of 2025, Burlington forecasts total sales growth between 5% and 7%, with comparable store sales expected to increase by 0% to 2%. The company anticipates an adjusted EBIT margin ranging from a 20-basis-point decline to flat compared to the third quarter of the previous year. Adjusted EPS for the third quarter is projected to fall between $1.50 and $1.60, aligning closely with last year’s adjusted EPS of $1.55.

Burlington’s strategic initiatives, particularly the Burlington 2.0 strategies, are in the early stages of their potential impact. The company remains optimistic about the long-term benefits of these initiatives, which are expected to drive sustained growth and profitability. With a strong start to the third quarter and a commitment to managing its business conservatively, Burlington is well-positioned to capitalize on market opportunities and deliver value to its shareholders.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.