01—Abstract
Summary
Summary of the 8-K filed March 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Burlington Stores reported a strong fourth quarter of fiscal 2025 (ended January 31, 2026).
Total sales rose 11% to $3.64 billiona, and comparable store sales grew 4% on top of a 6% gain a year earlier, a two-year stack of roughly 10%. Gross margin expanded 80 basis points to 43.7%, driven mainly by a 60 basis point merchandise margin gain. GAAP net income was $310 million, or $4.84 per diluted share, versus $4.02 a year ago.
Management cited Adjusted EPS of $4.99b (up 21%) against its $4.50 to $4.70 guidance, though the reconciliation tables in the filing show $4.89, so investors should confirm which figure is correct. For full-year fiscal 2025, total sales grew 9% to $11.55 billion, comparable store sales rose 2%, and GAAP diluted EPS was $9.51 (up 22% from $7.80). The company guided fiscal 2026 to total sales growth of 8% to 10%, comparable store sales growth of 1% to 3%, and Adjusted EPS of $10.95 to $11.45, implying roughly 8% to 13% growth from the reported $10.17.
Management also said there may be upside to comp expectations and that it has positioned the business to aggressively chase sales. The first quarter outlook is more cautious, with Adjusted EBIT margin guided down 60 to 100 basis points and Adjusted EPS of $1.60 to $1.75c. The balance sheet remains solid, with $2.16 billion of liquidity, $1.23 billion of cash, $2.08 billion of total debt, and no ABL borrowings.
Capital expenditures are expected to fall to about $875 milliond in fiscal 2026 from roughly $1.06 billion in fiscal 2025, with 110 net new stores and a new Savannah, GA distribution center planned. The company repurchased $59 million of stock in the quarter and has $385 million remaining under its authorization. Key watch items are the gap between narrative and reconciled non-GAAP figures, the sharp reduction in reserve inventory mix (40% versus 46%), and the first-quarter margin guidance.
02—Key points
Key Highlights
- Q4 FY25 total sales rose 11% to $3,643 million, with comparable store sales up 4% on a 6% prior-year comp, a two-year stack of about 10%.
- Q4 gross margin rate expanded 80 basis points to 43.7%, led by a 60 basis point merchandise margin improvement and 20 basis points of freight benefit.
- GAAP Q4 diluted EPS was $4.84 (up from $4.02). Management reported Adjusted EPS of $4.99 (up 21%), ahead of its $4.50 to $4.70 guidance. The reconciliation table shows $4.89, a discrepancy investors should clarify.
- FY25 GAAP net income was $610 million ($9.51 per share), and management reported Adjusted EPS of $10.17 (up 22%). Reconciliation tables show $9.76, so the non-GAAP figures are not consistent across the document.
- FY26 guidance calls for 8% to 10% total sales growth, 1% to 3% comp growth, Adjusted EBIT margin up 0 to 20 basis points, and Adjusted EPS of $10.95 to $11.45 on about 64 million diluted shares.
- Q1 FY26 guidance is more conservative: 9% to 11% sales growth, 2% to 4% comps, Adjusted EBIT margin down 60 to 100 basis points, and Adjusted EPS of $1.60 to $1.75 versus $1.67 prior year per the narrative.
- Liquidity was $2.16 billion at year end ($1.23 billion cash plus $926 million ABL availability), with $2.08 billion of debt. FY26 capex is guided to about $875 million, and the company has $385 million left on its buyback program.
03—Questions
Frequently Asked Questions
Why does the filing show different Adjusted EPS figures for Q4 and FY25?
The narrative and headline cite Adjusted EPS of $4.99 for Q4 and $10.17 for FY25, while the reconciliation tables show $4.89 and $9.76. The tables also include items not described in the text, including a one-time $12.7 million layaway liability settlement gain, an $11.7 million security tag write-off, and litigation charges. Investors should ask management to reconcile these figures on the earnings call, since the difference affects how the FY26 EPS guidance growth rate is measured.
What does the FY26 guidance imply for earnings growth?
Adjusted EPS guidance of $10.95 to $11.45 compares with $10.17 reported for FY25, implying about 8% to 13% growth. Sales growth of 8% to 10% and a flat to 20 basis point Adjusted EBIT margin improvement support this outlook. Lower bankruptcy-acquired lease expenses ($8 million pre-tax versus $35 million in FY25) also contribute. Share count is assumed at about 64 million, roughly flat year over year.
Why is the Q1 FY26 margin outlook weaker?
Management guided Q1 Adjusted EBIT margin down 60 to 100 basis points versus last year, even with 9% to 11% sales growth. The filing does not explain the drivers in detail, but the decline suggests cost investments, promotional activity, or sourcing and tariff pressures to support the aggressive sales push management described. Investors should look for clarification on the mix of these factors.
How strong is the balance sheet and how will cash be deployed?
Liquidity was $2.16 billion, cash was $1.23 billion, and total debt was $2.08 billion, including $1.72 billion of term loan and $297 million of convertible notes, with no ABL borrowings. Operating cash flow was $1.23 billion for FY25. Capex is expected to fall to about $875 million net of landlord allowances in FY26, with 110 net new stores and a new Savannah distribution center. The company repurchased $59 million of stock in Q4 and has $385 million remaining under its program.
What risks are highlighted in the filing?
The safe harbor language lists risks including tariffs and trade policy, consumer spending pressure, competition from other off-price and e-commerce retailers, and inventory management. Reserve inventory fell to 40% of total inventory from 46% a year earlier, while merchandise inventories rose 5% against comparable store inventories up 12%, which may reflect a shift in purchasing strategy. The 8-K also notes that adjustments for future non-GAAP guidance could be significant and cannot be predicted, including debt-related charges and impairments.
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