01—Abstract
Summary
Summary of the 10-Q filed August 28, 2025. Cited figures are marked; the original filing is the authoritative source.
Burlington Stores, Inc. reported strong financial results for the second quarter and first half of Fiscal Year 2025, demonstrating robust revenue growth and improved profitability.
Net sales for the second quarter increased by 9.7% to $2.70 billiona, and for the first half, they rose by 7.9% to $5.20 billion. This growth was driven by a combination of new store openings and a 5% increase in comparable store sales for the quarter and 2% for the first half. The company successfully enhanced its gross margin to 43.7% in Q2 and 43.8% year-to-date, primarily due to better merchandise margins from lower shortage and reduced markdowns, coupled with decreased freight costs.
Profitability saw a significant uplift, with net income increasing by 27.6% to $94.2 millionb in the second quarter and by 28.1% to $195.0 million in the first half. This performance reflects the company's ongoing strategic initiatives focused on driving comparable store sales, optimizing inventory and markdowns, enhancing merchandising capabilities, and expanding its store base.
The company continues to execute a disciplined real estate strategy, aiming for approximately 100 net new stores annually over the next five years, while also investing in operational efficiencies and supply chain improvements. Burlington ended the period with a solid liquidity position, supported by its ABL Line of Credit and cash generated from operations.
02—Key points
Key Highlights
- Revenue Growth: Net sales increased by 9.7% to $2.70 billion for the three months ended August 2, 2025, and by 7.9% to $5.20 billion for the six months ended August 2, 2025, year-over-year.
- Profitability Improvement: Net income rose by 27.6% to $94.2 million in Q2 and 28.1% to $195.0 million in the first half of Fiscal 2025, indicating effective cost management and sales leverage.
- Enhanced Gross Margin: Gross margin as a percentage of net sales improved to 43.7% in Q2 and 43.8% year-to-date, driven by better merchandise margins and lower freight costs.
- Comparable Store Sales Increase: The company reported a 5% increase in comparable store sales for the second quarter and 2% for the first six months, indicating strong performance in existing locations.
- Store Expansion: Burlington continues its strategic expansion, opening 44 new stores (including relocations) in the first half of Fiscal 2025, and maintains plans for approximately 100 net new stores annually.
- Shareholder Returns: The company repurchased $131.1 million of common stock in the first half of Fiscal 2025 under its existing repurchase programs, demonstrating a commitment to returning value to shareholders.
- Strong Liquidity: The company maintained a healthy liquidity position, with $747.6 million in cash and cash equivalents and significant availability under its ABL Line of Credit.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 28, 2025Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $2.71B$2.47B | +9.7% |
| Cost of Revenue | $1.52B$1.41B | +7.9% |
| Gross Profit | $1.19B$1.06B | +12.1% |
| SG&A Expenses | $949.93M$863.98M | +9.9% |
| Operating Expenses | $2.58B$2.37B | +9.0% |
| Net Income | $94.19M$73.76M | +27.7% |
| EPS (Basic) | $1.49$1.16 | +28.4% |
| EPS (Diluted) | $1.47$1.15 | +27.8% |
| Shares Outstanding (Basic) | 63.06M63.73M | −1.1% |
| Shares Outstanding (Diluted) | 63.89M64.33M | −0.7% |
05—Questions
Frequently Asked Questions
What was Burlington's revenue performance in the second quarter and first half of Fiscal Year 2025?
Burlington Stores, Inc. reported a significant increase in net sales. For the three months ended August 2, 2025, net sales grew by 9.7% to $2.70 billion compared to the prior year. For the six months ended August 2, 2025, net sales increased by 7.9% to $5.20 billion year-over-year.
How did Burlington's profitability change during this period?
Profitability improved considerably. Net income for the second quarter of Fiscal 2025 was $94.2 million, a 27.6% increase from the prior year. For the first half of Fiscal 2025, net income reached $195.0 million, up 28.1% compared to the same period last year. This improvement was driven by higher sales and an increased gross margin rate.
What is Burlington's strategy for store expansion and growth?
Burlington continues to execute a disciplined real estate strategy, aiming for approximately 100 net new stores annually over the next five years. In the first half of Fiscal 2025, they opened 44 new stores, including eight relocations, bringing their total store count to 1,138.
How is Burlington managing its inventory and what is its outlook on margin?
The company is focusing on operating with leaner inventories and optimizing markdowns to drive faster turns and improve the customer experience. This, combined with lower freight costs and improved merchandise margins (driven by lower shortage and reduced markdowns), led to an improved gross margin of 43.7% in Q2 and 43.8% year-to-date. They are also investing in merchandising capabilities and enhancing existing and introducing new product categories.
06—Continue