Burlington Stores (BURL) Posts Solid Q3 Results and Lifts Full-Year Guidance

Burlington Stores, Inc. has announced its financial performance for the third quarter of 2025, showcasing notable growth in adjusted earnings per share (EPS) and a steady increase in sales. Despite some challenges, the company exceeded expectations in certain areas, providing a positive outlook for the rest of the fiscal year.

Q3 Sales Rise 7% as Burlington Outperforms on Adjusted EPS

Burlington Stores, Inc. (BURL) reported a 7% increase in total sales for the third quarter of 2025, reaching $2.706 billion compared to $2.526 billion in the same period last year. Comparable store sales saw a modest rise of 1%. The company’s net income stood at $105 million, translating to a diluted EPS of $1.63. However, when adjusted for certain expenses, the EPS increased to $1.80, surpassing the market expectation of $1.64. This represents a 16% growth in adjusted EPS compared to the previous year.

Despite the positive EPS results, Burlington’s actual revenue of $2.71 billion fell slightly short of the anticipated $2.72 billion. The company’s gross margin rate improved to 44.2% from 43.9% in the previous year, driven by an expansion in merchandise margin and a reduction in freight expenses. The adjusted EBIT margin also saw an increase of 60 basis points, indicating an effective management of operational costs.

CEO Michael O’Sullivan noted that while traffic experienced a downturn after the back-to-school period due to warm weather, the trend reversed mid-October as temperatures cooled. This shift helped maintain a strong sales momentum into November. The company’s merchandising and operational strategies played a crucial role in mitigating tariff impacts, contributing to the improved margins and earnings performance.

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Full-Year EPS Guidance Raised as Margin Trends Improve

Looking ahead, Burlington Stores, Inc. has raised its full-year adjusted EPS guidance to a range of $9.69 to $9.89, up from previous estimates. This adjustment reflects the company’s confidence in maintaining favorable margin and expense trends. The guidance excludes anticipated expenses related to bankruptcy-acquired leases, ensuring a clearer picture of operational performance.

For the fourth quarter of fiscal 2025, Burlington anticipates a total sales increase between 7% and 9%, with comparable store sales expected to rise by 0% to 2%. The adjusted EBIT margin is projected to grow by 30 to 50 basis points, further supporting the company’s optimistic outlook. Despite facing strong comparisons from the previous year, Burlington remains committed to achieving its sales and earnings targets.

In terms of long-term growth, Burlington is on track to meet its operating income target of approximately $1.6 billion by 2028. The company plans to open 104 net new stores in fiscal 2025 and expects capital expenditures to be around $950 million. With a focus on expanding margins and optimizing store performance, Burlington is well-positioned to sustain its growth trajectory in the coming years.

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.