Burlington Stores, Inc. Reports Strong First Quarter Performance Despite Challenges

Burlington Stores, Inc. (NYSE: BURL) has announced its financial results for the first quarter of fiscal year 2025, showcasing solid performance despite a challenging economic environment. The company’s results exceeded expectations, providing a promising outlook for the rest of the year.

Burlington Stones, Inc. Reports 6% Increase in Total Sales for Q1

In the first quarter of 2025, Burlington Stores, Inc. reported a 6% increase in total sales, reaching $2.5 billion, compared to $2.36 billion in the same period last year. This growth was at the midpoint of the company’s guidance, which marked a continuation of its strong performance from the previous year. Comparable store sales remained flat, consistent with the company’s expectations, and on top of a 2% increase in the prior year.

The company’s net income for the quarter was $101 million, translating to a diluted earnings per share (EPS) of $1.58. This result exceeded the market’s expectations of $1.42 per share. Adjusted EPS, which excludes certain expenses, rose by 18% to $1.67, significantly outperforming the anticipated figures. This improvement was attributed to favorable timing of expenses, which is expected to impact the second quarter negatively.

Burlington’s gross margin rate as a percentage of net sales improved to 43.8% from 43.5% in the first quarter of 2024. The merchandise margin expanded by 20 basis points, while freight expenses saw a 10 basis point improvement. These enhancements contributed to an adjusted EBIT margin increase of 30 basis points, surpassing the company’s guidance. Overall, Burlington’s first-quarter performance highlights its ability to navigate a challenging retail environment effectively.

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Burlington Stores, Inc. Maintains Full-Year Adjusted EPS Guidance of $8.70 to $9.30

Looking ahead, Burlington Stores, Inc. has maintained its full-year adjusted EPS guidance of $8.70 to $9.30, excluding anticipated expenses related to bankruptcy-acquired leases. The company expects total sales to increase by 6% to 8% for fiscal year 2025, building on an 11% increase in 2024. Comparable store sales are projected to rise between 0% and 2%, following a 4% increase in the previous year.

For the second quarter of 2025, Burlington anticipates total sales growth in the range of 5% to 7%, with comparable store sales expected to increase by 0% to 2%. The adjusted EBIT margin is projected to be flat to down 30 basis points compared to the second quarter of 2024, reflecting the impact of anticipated expenses. The company forecasts an adjusted EPS range of $1.20 to $1.30, compared to $1.24 in the same quarter last year.

CEO Michael O’Sullivan expressed confidence in the company’s ability to manage challenges, particularly concerning tariffs. He noted that while tariffs pose a risk to merchandise margins, Burlington’s operational flexibility allows it to offset these pressures elsewhere in its profit and loss statement. The company remains focused on achieving its long-term growth potential, driven by the structural dynamics of the retail industry, which favor off-price retail models like Burlington’s.

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.