10-QPeriod: Q2 FY2027

Burlington Stores, Inc. Quarterly Report for Q2 Ended Aug 1, 2026

Filed August 27, 2026For Securities:BURL

Summary

Burlington Stores, Inc. reported strong performance for the second quarter and first half of fiscal year 2026, driven by significant increases in net sales and improved gross margin. Net sales for the second quarter rose by 11.0% to $2.998 billion, and for the first half of the year, they increased by 12.5% to $5.850 billion. This growth was fueled by both new store openings and a 2% increase in comparable store sales for the quarter and a 4% increase for the first half. A notable factor contributing to the improved profitability was a $55.5 million benefit from tariff refunds, alongside better merchandise margins. Profitability saw a substantial jump, with net income reaching $184.3 million for the second quarter, up from $94.2 million in the prior year, and $299.0 million for the first half, up from $195.0 million. This robust financial performance, coupled with strategic growth initiatives like store expansion and supply chain investments, positions Burlington Stores favorably. The company continues to expand its store footprint, with plans to open at least 100 net new stores annually.

Key Highlights

  • 1Net sales increased by 11.0% to $2.998 billion in Q2 FY2026 and by 12.5% to $5.850 billion in the first half of FY2026.
  • 2Net income more than doubled year-over-year, reaching $184.3 million in Q2 and $299.0 million in the first half of FY2026.
  • 3Gross margin improved significantly, up to 46.2% in Q2 and 45.1% in the first half, boosted by $55.5 million in tariff refunds and better merchandise margins.
  • 4Comparable store sales increased by 2% for the second quarter and 4% for the first half of FY2026.
  • 5The company opened 91 new stores (including 12 relocations) in the first half of FY2026, bringing the total store count to 1,287, and plans to open at least 100 net new stores per year.
  • 6Inventories increased by 8.9% year-over-year to $1.541 billion, reflecting new store growth and higher comparable store inventory, while reserve inventory as a percentage of total inventory decreased.
  • 7The company maintained a strong liquidity position, with $703.7 million in cash and cash equivalents as of August 1, 2026, and $942.0 million available under its ABL Line of Credit.

Frequently Asked Questions

The substantial increase in net income is primarily driven by a combination of higher net sales, an improved gross margin rate, and a significant benefit from tariff refunds totaling $55.5 million. These factors, along with ongoing operational efficiencies, contributed to the strong bottom-line performance.

Burlington Stores has increased its inventory to $1.541 billion, reflecting growth from new stores and higher comparable store inventory. However, the company has strategically reduced its reserve inventory to 43% of total inventory (down from 50% in the prior year) to better chase sales trends and ensure a flow of fresh merchandise, indicating a proactive approach to inventory management.

Burlington Stores remains committed to expanding its store footprint, with plans to open at least 100 net new stores per year and a long-term goal of operating 2,000 stores. The company is selectively expanding in attractive locations, prioritizing 25,000 square foot stores in busy strip malls, and also relocating or downsizing certain existing stores.

The tariff refunds provided a significant benefit, contributing $55.5 million to the cost of sales reduction. This refund was a key factor in the improved gross margin and overall net income for both the second quarter and the first half of the fiscal year.