Burlington Stores, Inc. Reports Fourth Quarter and Full Year 2025 Earnings
Rhea-AI Summary
Burlington Stores (NYSE: BURL) reported strong fourth quarter and full‑year Fiscal 2025 results, with Q4 total sales +11% to $3,643 million and Q4 net income $310 million ($4.84 GAAP diluted EPS). Adjusted Q4 EPS rose 21% to $4.99 and FY25 Adjusted EPS was $10.17, up 22% versus FY24.
The company ended Q4 with $2,159 million liquidity, $2,082 million total debt, repurchased $59 million of stock, and provided Fiscal 2026 guidance of 8–10% sales growth and Adjusted EPS of $10.95–$11.45.
Positive
- Q4 total sales +11% to $3,643 million
- Q4 comparable store sales +4%
- Q4 Adjusted EPS +21% to $4.99
- FY25 Adjusted EPS $10.17, +22% versus FY24
- Liquidity of $2,159 million at quarter end
- Fiscal 2026 sales guidance of +8% to +10%
Negative
- Fiscal 2026 capital expenditures approx. $875 million
- Outstanding total debt of $2,082 million at quarter end
- Comparable store inventories +12% versus prior-year quarter
- Q1 Fiscal 2026 Adjusted EBIT margin expected down 60–100 bps
- FY26 Adjusted EBIT margin guidance only +0–20 bps
News Market Reaction – BURL
On the day this news was published, BURL gained 6.89%, reflecting a notable positive market reaction. Argus tracked a peak move of +2.2% during that session. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $1.22B to the company's valuation, bringing the market cap to $18.93B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Pre‑earnings, BURL showed a small 0.12% gain with elevated volume. Key apparel peers were mixed: TJX +1.07%, GAP +1.39%, while LULU -0.2% and BOOT -2.8%. Momentum scanners only flagged VSCO +2.32%, suggesting stock‑specific focus rather than a broad sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 25 | Q3 2025 earnings | Positive | -12.2% | Q3 2025 sales growth, margin expansion, and guidance raised for Adjusted EPS. |
| Aug 28 | Q2 2025 earnings | Positive | +5.3% | Q2 2025 strong comps, 39% Adjusted EPS growth, and higher full‑year guidance. |
| May 29 | Q1 2025 earnings | Positive | -4.5% | Q1 2025 sales growth, margin improvement, and reaffirmed Adjusted EPS guidance. |
| Mar 06 | Q4/FY 2024 earnings | Positive | +8.7% | Q4 and FY2024 beat with strong comps and higher FY2025 Adjusted EPS outlook. |
| Nov 26 | Q3 2024 earnings | Positive | -1.6% | Q3 2024 double‑digit sales growth, EBIT margin expansion, and raised FY24 guidance. |
Earnings releases have generally been fundamentally strong but produced mixed reactions, with 3 of the last 5 earnings reports seeing negative next‑day moves despite positive metrics and raised guidance.
Over the past year, Burlington has delivered a series of solid earnings reports. Q4 and FY2024 results on Mar 6, 2025 showed double‑digit EPS growth and strong comps, followed by Q1–Q3 2025 updates featuring consistent sales growth, margin expansion, and repeated raises to full‑year Adjusted EPS guidance into the $9+ range. Despite this, share price reactions have been uneven, with notable drawdowns after some positive quarters. Today’s Q4/FY2025 release extends the narrative of accelerating EPS and margin gains on top of prior growth.
Historical Comparison
In the last five earnings releases, BURL’s average next‑day move was -0.86% despite consistently positive sales, margin, and EPS trends, highlighting a history of mixed trading responses to strong results.
Earnings updates show a steady progression: recurring double‑digit EPS growth, sustained comp gains, and multiple raises to full‑year Adjusted EPS guidance, culminating in today’s Q4/FY2025 beat and higher FY2026 outlook.
Market Pulse Summary
The stock moved +6.9% in the session following this news. A strong positive reaction aligns with the company’s accelerating fundamentals: Q4 sales grew 11%, Adjusted EPS reached $4.99 above guidance, and FY2025 Adjusted EPS rose 22% to $10.17. Historically, earnings days have produced mixed moves despite similar strength, so traders may watch whether elevated pre‑announcement volume and recent insider net selling temper follow‑through as expectations reset around the higher FY2026 EPS outlook.
Key Terms
adjusted ebit margin financial
adjusted eps financial
adjusted ebitda financial
adjusted effective tax rate financial
non-gaap financial measures financial
abl facility financial
AI-generated analysis. Not financial advice.
- Q4 total sales grew
11% , and comparable store sales increased4% - Q4 net income was
$310 million , and diluted EPS was$4.84 - FY25 total sales grew
9% , and comparable store sales increased2% - FY25 net income was
$610 million , and diluted EPS was$9.51 - Excluding expenses associated with bankruptcy acquired leases:
- Q4 Adjusted EBIT margin increased 100 basis points versus Q4 of FY24
- Q4 Adjusted EPS increased
21% to$4.99 , versus guidance of$4.50 t o$4.70 - FY25 Adjusted EBIT margin of
8.0% , an increase of 80 basis points versus FY24 - FY25 Adjusted EPS of
$10.17 , an increase of22% versus FY24
BURLINGTON, N.J., March 05, 2026 (GLOBE NEWSWIRE) -- Burlington Stores, Inc. (NYSE: BURL), a nationally recognized off-price retailer of high-quality, branded apparel, footwear, accessories, and merchandise for the home at everyday low prices, today announced its results for the fourth quarter and full year ended January 31, 2026.
Michael O’Sullivan, CEO, stated, “We are very pleased with our strong performance in the fourth quarter. Comparable store sales increased
Mr. O’Sullivan went on, “Looking back on 2025 as a whole, total sales increased
Mr. O’Sullivan concluded, “We are feeling bullish about our prospects in Fiscal 2026. There are external and internal factors that are driving this optimism. Our full year comp guidance of
Fiscal 2025 Fourth Quarter Operating Results
- Total sales increased
11% compared to the fourth quarter of Fiscal 2024 to$3,643 million , while comparable store sales increased4% compared to the fourth quarter of Fiscal 2024. - Gross margin rate as a percentage of net sales was
43.7% vs.42.9% for the fourth quarter of Fiscal 2024, an increase of 80 basis points. Merchandise margin expanded by 60 basis points, while freight expense improved 20 basis points. - Product sourcing costs, which are included in selling, general and administrative expenses (SG&A), were
$232 million vs.$217 million in the fourth quarter of Fiscal 2024, decreasing 30 basis points as a percentage of net sales. Product sourcing costs include the costs of processing goods through our supply chain and buying costs. - SG&A was
$1,052 million vs.$965 million in the fourth quarter of Fiscal 2024. Adjusted SG&A, excluding$8 million and$5 million of expenses, respectively, associated with bankruptcy acquired leases, was22.2% as a percentage of net sales vs.22.6% in the fourth quarter of Fiscal 2024, a decrease of 40 basis points. - The effective tax rate was
25.7% vs.25.0% in the fourth quarter of Fiscal 2024. The Adjusted Effective Tax Rate was25.7% vs.24.9% in the fourth quarter of Fiscal 2024. - Net income was
$310 million , or$4.84 per share vs.$261 million , or$4.02 per share for the fourth quarter of Fiscal 2024. Adjusted Net Income was$320 million , or$4.99 per share, vs.$267 million , or$4.13 per share for the fourth quarter of Fiscal 2024, excluding$6 million and$4 million of expenses, respectively, net of tax, associated with bankruptcy acquired leases. - Diluted weighted average shares outstanding amounted to 64.1 million during the quarter compared with 64.8 million during the fourth quarter of Fiscal 2024.
- Adjusted EBITDA was
$562 million vs.$456 million in the fourth quarter of Fiscal 2024, excluding$8 million and$5 million of expenses, respectively, associated with bankruptcy acquired leases, an increase of 150 basis points as a percentage of sales. Adjusted EBIT was$442 million vs.$364 million in the fourth quarter of Fiscal 2024, excluding$8 million and$5 million of expenses, respectively, associated with bankruptcy acquired leases, an increase of 100 basis points as a percentage of sales.
Full Year Fiscal 2025 Results
- Total sales increased
9% compared to Fiscal 2024. Net income increased21% compared to the same period in Fiscal 2024 to$610 million , or$9.51 per share vs.$504 million , or$7.80 per share in Fiscal 2024. - Adjusted EBIT, excluding
$35 million and$16 million , respectively, of expenses associated with bankruptcy acquired leases, was$923 million vs.$761 million in Fiscal 2024, an increase of 80 basis points as a percentage of sales. Adjusted Net Income, excluding$26 million and$12 million , respectively, of expenses, net of tax, associated with bankruptcy acquired leases, was$652 million vs.$540 million in Fiscal 2024. Adjusted EPS was$10.17 vs.$8.35 in Fiscal 2024, an increase of22% .
Inventory
- Merchandise inventories were
$1,312 million vs.$1,251 million at the end of the fourth quarter of Fiscal 2024, a5% increase, while comparable store inventories increased12% compared to the fourth quarter of Fiscal 2024. Reserve inventory was40% of total inventory at the end of the fourth quarter of Fiscal 2025 compared to46% at the end of the fourth quarter of Fiscal 2024. Reserve inventory is largely composed of merchandise that is purchased opportunistically and that will be sent to stores in future months or next season.
Liquidity and Debt
- The Company ended the fourth quarter of Fiscal 2025 with
$2,159 million in liquidity, comprised of$1,233 million in unrestricted cash and$926 million in availability on its ABL facility. - The Company ended the fourth quarter of Fiscal 2025 with
$2,082 million in outstanding total debt, including$1,719 million on its Term Loan facility,$297 million in Convertible Notes, and no borrowings on its ABL facility.
Common Stock Repurchases
- During the fourth quarter of Fiscal 2025 the Company repurchased 223,863 shares of its common stock under its share repurchase program for
$59 million . As of the end of the fourth quarter of Fiscal 2025, the Company had$385 million remaining on its current share repurchase program authorization.
Outlook
For Fiscal Year 2026 (the 52-weeks ending January 30, 2027), the Company expects:
- Total sales to increase in the range of
8% to10% on top of the9% increase for the 52-weeks ended January 31, 2026; this assumes comparable store sales will increase in the range of1% to3% , on top of the2% increase for the 52-weeks ended January 31, 2026; - Capital expenditures, net of landlord allowances, to be approximately
$875 million ; - To open 110 net new stores, as well as a new distribution center in Savannah, GA;
- Depreciation and amortization to be approximately
$465 million ; - Adjusted EBIT margin to increase in the range of 0 to 20 basis points versus the 52-weeks ended January 31, 2026; excludes
$8 million of anticipated expenses associated with bankruptcy acquired leases in Fiscal 2026 vs.$35 million incurred in Fiscal 2025; - Net interest expense to be approximately
$60 million ; - An Adjusted Effective Tax Rate of approximately
25% ; and - Adjusted EPS in the range of
$10.95 t o$11.45 , as compared to$10.17 of Adjusted EPS in Fiscal 2025; excludes$6 million , net of tax, of anticipated expenses associated with bankruptcy acquired leases in Fiscal 2026 vs.$26 million incurred in Fiscal 2025. This assumes a fully diluted share count of approximately 64 million shares.
For the First Quarter of Fiscal 2026 (the 13 weeks ending May 2, 2026), the Company expects:
- Total sales to increase in the range of
9% to11% ; this assumes comparable store sales will increase in the range of2% to4% versus the first quarter of Fiscal 2025; - Adjusted EBIT margin to decrease 60 to 100 basis points versus the first quarter of Fiscal 2025; excludes approximately
$6 million of anticipated expenses associated with bankruptcy acquired leases in the first quarter of Fiscal 2026 vs.$6 million incurred in the prior period; - An Adjusted Effective Tax Rate of approximately
19% ; and - Adjusted EPS in the range of
$1.60 t o$1.75 , as compared to$1.67 in Adjusted EPS in the first quarter of Fiscal 2025; excludes$5 million , net of tax, of anticipated expenses associated with bankruptcy acquired leases in the first quarter of Fiscal 2026 vs.$4 million incurred in the first quarter of Fiscal 2025.
The Company has not presented a quantitative reconciliation of the forward-looking non-GAAP financial measures set out above to their most comparable GAAP financial measures because it would require the Company to create estimated ranges on a GAAP basis, which would entail unreasonable effort. Adjustments required to reconcile forward-looking non-GAAP measures cannot be predicted with reasonable certainty but may include, among others, costs related to debt amendments, loss on extinguishments of debt, and impairment charges, as well as the tax effect of such items. Some or all of those adjustments could be significant.
Note Regarding Non-GAAP Financial Measures
The foregoing discussion of the Company’s operating results includes references to Adjusted SG&A, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings per Share (or Adjusted EPS), Adjusted EBIT (or Adjusted Operating Income), Adjusted EBIT Margin (or Adjusted Operating Margin), and Adjusted Effective Tax Rate. The Company believes these supplemental measures are useful in evaluating the performance of our business and provide greater transparency into our results of operations. In particular, we believe that excluding certain items that may vary substantially in frequency and magnitude from what we consider to be our core operating results are useful supplemental measures that assist investors and management in evaluating our ability to generate earnings and leverage sales, and to more readily compare core operating results between past and future periods. These non-GAAP financial measures are defined and reconciled to the most comparable GAAP measures later in this document.
Fourth Quarter 2025 Conference Call
The Company will hold a conference call on March 5, 2026, at 8:30 a.m. ET to discuss the Company’s fourth quarter and full year Fiscal 2025 results. The U.S. toll free dial-in for the conference call is 1-800-715-9871 (passcode: 3196665) and the international dial-in number is 1-646-307-1963. A live webcast of the conference call will also be available on the investor relations page of the company's website at www.burlingtoninvestors.com.
For those unable to participate in the conference call, a replay will be available after the conclusion of the call on March 5, 2026 beginning at 11:30 a.m. ET through March 12, 2026 11:59 p.m. ET. The U.S. toll-free replay dial-in number is 1-800-770-2030 and the international replay dial-in number is 1-609-800-9909. The replay passcode is 3196665.
About Burlington Stores, Inc.
Burlington Stores, Inc., headquartered in New Jersey, is a nationally recognized off-price retailer with Fiscal 2025 net sales of
For more information about the Company, visit www.burlington.com.
Investor Relations Contacts:
David J. Glick
855-973-8445
Info@BurlingtonInvestors.com
Allison Malkin
ICR, Inc.
203-682-8225
Safe Harbor for Forward-Looking and Cautionary Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included in this release, including those about our long-term prospects and the external environment, as well as statements describing our outlook for future periods, are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. We do not undertake to publicly update or revise our forward-looking statements, except as required by law, even if experience or future changes make it clear that any projected results expressed or implied in such statements will not be realized. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual events or results to differ materially from those we expected, including general economic conditions, such as inflation, and the domestic and international political situation and the related impact on consumer confidence and spending; competitive factors, including the scale and potential consolidation of some of our competitors, rise of e-commerce spending, pricing and promotional activities of major competitors, and an increase in competition within the markets in which we compete; seasonal fluctuations in our net sales, operating income and inventory levels; the reduction in traffic to, or the closing of, the other destination retailers in the shopping areas where our stores are located; our ability to identify changing consumer preferences and demand; our ability to meet evolving regulatory requirements and stakeholder expectations regarding environmental, social or governance matters; extreme and/or unseasonable weather conditions caused by climate change or otherwise adversely impacting demand; effects of public health crises, epidemics or pandemics; our ability to sustain our growth plans or successfully implement our long-range strategic plans; our ability to execute our opportunistic buying and inventory management process; our ability to optimize our existing stores or maintain favorable lease terms; the availability, selection and purchasing of attractive brand name merchandise on favorable terms; our ability to attract, train and retain quality employees and temporary personnel in sufficient numbers; labor costs and our ability to manage a large workforce; the solvency of parties with whom we do business and their willingness to perform their obligations to us; import risks, including tax and trade policies, tariffs and government regulations; disruption in our distribution network; our ability to protect our information systems against service interruption, misappropriation of data, breaches of security, or other cyber-related attacks; risks related to the methods of payment we accept; the success of our advertising and marketing programs in generating sufficient levels of customer traffic and awareness; damage to our corporate reputation or brand; impact of potential loss of executives or other key personnel; our ability to comply with existing and changing laws, rules, regulations and local codes; lack of or insufficient insurance coverage; issues with merchandise safety and shrinkage; our ability to comply with increasingly rigorous privacy and data security regulations; impact of legal and regulatory proceedings relating to us; use of social media by us or by third parties at our direction in violation of applicable laws and regulations; our ability to generate sufficient cash to fund our operations and service our debt obligations; our ability to comply with covenants in our debt agreements; the consequences of the possible conversion of our convertible notes; our reliance on dividends, distributions and other payments, advance and transfers of funds from our subsidiaries to meet our obligations; the volatility of our stock price; the impact of the anti-takeover provisions in our governing documents; impact of potential shareholder activism; and each of the factors that may be described from time to time in our filings with the U.S. Securities and Exchange Commission, including under the heading “Risk Factors” in our most recent Annual Report on Form 10-K, and as further updated under the heading “Risk Factors” in our subsequent Quarterly Reports on Form 10-Q. For each of these factors, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended.
| BURLINGTON STORES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) (All amounts in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| January 31, | February 1, | January 31, | February 1, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| REVENUES: | ||||||||||||||||
| Net sales | $ | 3,642,503 | $ | 3,272,058 | $ | 11,549,607 | $ | 10,616,743 | ||||||||
| Other revenue | 4,875 | 4,998 | 17,303 | 18,080 | ||||||||||||
| Total revenue | 3,647,378 | 3,277,056 | 11,566,910 | 10,634,823 | ||||||||||||
| COSTS AND EXPENSES: | ||||||||||||||||
| Cost of sales | 2,052,349 | 1,868,283 | 6,486,922 | 6,025,272 | ||||||||||||
| Selling, general and administrative expenses | 1,051,673 | 964,668 | 3,817,180 | 3,546,967 | ||||||||||||
| Costs related to debt amendments | — | — | 112 | 4,553 | ||||||||||||
| Depreciation and amortization | 131,995 | 91,481 | 417,871 | 347,575 | ||||||||||||
| Impairment charges - long-lived assets | 3,976 | 1,667 | 9,857 | 12,921 | ||||||||||||
| Other income - net | (21,963 | ) | (4,667 | ) | (31,287 | ) | (16,694 | ) | ||||||||
| Loss on extinguishment of debt | — | — | — | 1,412 | ||||||||||||
| Interest income | (7,166 | ) | (10,367 | ) | (20,904 | ) | (31,519 | ) | ||||||||
| Interest expense | 18,651 | 18,522 | 71,041 | 69,522 | ||||||||||||
| Total costs and expenses | 3,229,515 | 2,929,587 | 10,750,792 | 9,960,009 | ||||||||||||
| Income before income tax expense | 417,863 | 347,469 | 816,118 | 674,814 | ||||||||||||
| Income tax expense | 107,478 | 86,702 | 205,965 | 171,175 | ||||||||||||
| Net income | $ | 310,385 | $ | 260,767 | $ | 610,153 | $ | 503,639 | ||||||||
| Diluted net income per common share | $ | 4.84 | $ | 4.02 | $ | 9.51 | $ | 7.80 | ||||||||
| Weighted average common shares - diluted | 64,139 | 64,814 | 64,126 | 64,595 | ||||||||||||
| BURLINGTON STORES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (All amounts in thousands) | ||||||||
| January 31, | February 1, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,232,525 | $ | 994,698 | ||||
| Accounts receivable—net | 105,296 | 88,079 | ||||||
| Merchandise inventories | 1,311,903 | 1,250,775 | ||||||
| Assets held for disposal | 3,364 | 32,193 | ||||||
| Prepaid and other current assets | 118,444 | 263,058 | ||||||
| Total current assets | 2,771,532 | 2,628,803 | ||||||
| Property and equipment—net | 3,164,218 | 2,369,720 | ||||||
| Operating lease assets | 3,624,786 | 3,386,852 | ||||||
| Goodwill and intangible assets—net | 285,064 | 285,064 | ||||||
| Deferred tax assets | 2,139 | 2,248 | ||||||
| Other assets | 71,318 | 97,726 | ||||||
| Total assets | $ | 9,919,057 | $ | 8,770,413 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,019,152 | $ | 1,038,148 | ||||
| Current operating lease liabilities | 425,468 | 406,891 | ||||||
| Other current liabilities | 734,000 | 656,581 | ||||||
| Current maturities of long term debt and other current debt | 70,591 | 170,891 | ||||||
| Total current liabilities | 2,249,211 | 2,272,511 | ||||||
| Long term debt | 2,011,735 | 1,539,918 | ||||||
| Long term operating lease liabilities | 3,497,343 | 3,253,825 | ||||||
| Other liabilities | 75,738 | 74,402 | ||||||
| Deferred tax liabilities | 277,771 | 259,261 | ||||||
| Stockholders' equity | 1,807,259 | 1,370,496 | ||||||
| Total liabilities and stockholders' equity | $ | 9,919,057 | $ | 8,770,413 | ||||
| BURLINGTON STORES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (All amounts in thousands) | ||||||||
| Fiscal Year Ended | ||||||||
| January 31, | February 1, | |||||||
| 2026 | 2025 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net income | $ | 610,153 | $ | 503,639 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
| Depreciation and amortization | 417,871 | 347,575 | ||||||
| Deferred income taxes | 27,784 | 28,637 | ||||||
| Loss on extinguishment of debt | — | 1,412 | ||||||
| Non-cash stock compensation expense | 106,732 | 87,572 | ||||||
| Non-cash lease expense | (3,057 | ) | (9,856 | ) | ||||
| Cash received from landlord allowances | 56,856 | 28,872 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | (18,092 | ) | (14,253 | ) | ||||
| Merchandise inventories | (61,128 | ) | (162,934 | ) | ||||
| Accounts payable | (23,703 | ) | 86,505 | |||||
| Other current assets and liabilities | 106,517 | (36,526 | ) | |||||
| Other long term assets and liabilities | (2,390 | ) | 1,136 | |||||
| Other operating activities | 13,839 | 1,597 | ||||||
| Net cash provided by operating activities | 1,231,382 | 863,376 | ||||||
| INVESTING ACTIVITIES | ||||||||
| Cash paid for property and equipment | (1,059,793 | ) | (880,384 | ) | ||||
| Lease acquisition costs | (22,798 | ) | (11,599 | ) | ||||
| Net proceeds from sale of property and equipment and assets held for sale | 27,541 | 9,729 | ||||||
| Net cash used in investing activities | (1,055,050 | ) | (882,254 | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| Proceeds from long term debt—ABL Line of Credit | 150,000 | — | ||||||
| Principal payments on long term debt—ABL Line of Credit | (150,000 | ) | — | |||||
| Proceeds from long term debt—Term Loan Facility | 495,000 | 605,843 | ||||||
| Principal payments on long term debt—Term Loan Facility | (16,269 | ) | (302,597 | ) | ||||
| Principal payment on long term debt—2025 Convertible Notes | (156,158 | ) | — | |||||
| Purchase of treasury shares | (278,422 | ) | (256,293 | ) | ||||
| Other financing activities | 17,344 | 41,264 | ||||||
| Net cash provided by financing activities | 61,495 | 88,217 | ||||||
| Increase in cash and cash equivalents | 237,827 | 69,339 | ||||||
| Cash and cash equivalents at beginning of period | 994,698 | 925,359 | ||||||
| Cash and cash equivalents at end of period | $ | 1,232,525 | $ | 994,698 | ||||
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Amounts in thousands, except per share data)
The following tables calculate the Company’s Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, Adjusted EBIT, Adjusted SG&A and Adjusted Effective Tax Rate, all of which are considered non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.
Adjusted Net Income is defined as net income, exclusive of the following items, if applicable: (i) interest expense; (ii) interest income; (iii) loss on extinguishment of debt; (iv) costs related to debt amendments; (v) income tax expense; (vi) depreciation and amortization; (vii) net favorable lease costs; (viii) impairment charges; (ix) amounts related to certain litigation matters; and (x) other unusual, non-recurring expenses, losses, charges or gains.
Adjusted EPS is defined as Adjusted Net Income divided by the diluted weighted average shares outstanding, as defined in the table below.
Adjusted EBITDA is defined as net income, exclusive of the following items, if applicable: (i) interest expense; (ii) interest income; (iii) loss on extinguishment of debt; (iv) costs related to debt amendments; (v) income tax expense; (vi) depreciation and amortization; (vii) net favorable lease costs; (viii) impairment charges; (ix) amounts related to certain litigation matters; and (x) other unusual, non-recurring expenses, losses, charges or gains.
Adjusted EBIT (or Adjusted Operating Income) is defined as net income, exclusive of the following items, if applicable: (i) interest expense; (ii) interest income; (iii) loss on extinguishment of debt; (iv) costs related to debt amendments; (v) income tax expense; (vi) impairment charges; (vii) net favorable lease costs; (viii) amounts related to certain litigation matters; and (ix) other unusual, non-recurring expenses, losses, charges or gains.
Adjusted EBIT Margin (or Adjusted Operating Margin) is defined as Adjusted EBIT divided by net sales.
Adjusted SG&A is defined as SG&A less product sourcing costs, favorable lease costs and amounts related to certain litigation matters.
Adjusted Effective Tax Rate is defined as the GAAP effective tax rate less the tax effect of the reconciling items to arrive at Adjusted Net Income (footnote (h) in the table below).
The Company presents Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, Adjusted EBIT (or Adjusted Operating Income), Adjusted EBIT Margin (or Adjusted Operating Margin), Adjusted SG&A and Adjusted Effective Tax Rate, because it believes they are useful supplemental measures in evaluating the performance of the Company’s business and provide greater transparency into the results of operations. In particular, the Company believes that excluding certain items that may vary substantially in frequency and magnitude from what the Company considers to be its core operating results are useful supplemental measures that assist in evaluating the Company’s ability to generate earnings and leverage sales, and to more readily compare core operating results between past and future periods.
The Company believes that these non-GAAP measures provide investors helpful information with respect to the Company’s operations and financial condition. Other companies in the retail industry may calculate these non-GAAP measures differently such that the Company’s calculation may not be directly comparable.
The following table shows the Company’s reconciliation of net income to Adjusted Net Income and Adjusted EPS for the periods indicated:
| (unaudited) | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| January 31, | February 1, | January 31, | February 1, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Reconciliation of net income to Adjusted Net Income: | ||||||||||||||||
| Net income | $ | 310,385 | $ | 260,767 | $ | 610,153 | $ | 503,639 | ||||||||
| Net favorable lease costs (a) | 1,781 | 2,230 | 7,742 | 11,189 | ||||||||||||
| Loss on extinguishment of debt (b) | — | — | — | 1,412 | ||||||||||||
| Costs related to debt amendments (c) | — | — | 112 | 4,553 | ||||||||||||
| Impairment charges - long-lived assets | 3,976 | 1,667 | 9,857 | 12,921 | ||||||||||||
| Litigation matters (d) | (80 | ) | — | 4,175 | 2,525 | |||||||||||
| Layaway liabilities (e) | (12,716 | ) | — | (12,716 | ) | — | ||||||||||
| Security tags (f) | 11,657 | — | 11,657 | — | ||||||||||||
| Tax effect (h) | (1,118 | ) | (921 | ) | (5,297 | ) | (8,298 | ) | ||||||||
| Adjusted Net Income | $ | 313,885 | $ | 263,743 | $ | 625,683 | $ | 527,941 | ||||||||
| Diluted weighted average shares outstanding (i) | 64,139 | 64,814 | 64,126 | 64,595 | ||||||||||||
| Adjusted Earnings per Share | $ | 4.89 | $ | 4.07 | $ | 9.76 | $ | 8.17 | ||||||||
The following table shows the Company’s reconciliation of net income to Adjusted EBIT and Adjusted EBITDA for the periods indicated:
| (unaudited) | |||||||||||||||||
| (in thousands) | |||||||||||||||||
| Three Months Ended | Fiscal Year Ended | ||||||||||||||||
| January 31, | February 1, | January 31, | February 1, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Reconciliation of net income to Adjusted EBIT and Adjusted EBITDA: | |||||||||||||||||
| Net income | $ | 310,385 | $ | 260,767 | $ | 610,153 | $ | 503,639 | |||||||||
| Interest expense | 18,651 | 18,522 | 71,041 | 69,522 | |||||||||||||
| Interest income | (7,166 | ) | (10,367 | ) | (20,904 | ) | (31,519 | ) | |||||||||
| Net favorable lease costs (a) | 1,781 | 2,230 | 7,742 | 11,189 | |||||||||||||
| Loss on extinguishment of debt (b) | — | — | — | 1,412 | |||||||||||||
| Costs related to debt amendments (c) | — | — | 112 | 4,553 | |||||||||||||
| Impairment charges - long-lived assets | 3,976 | 1,667 | 9,857 | 12,921 | |||||||||||||
| Litigation matters (d) | (80 | ) | — | 4,175 | 2,525 | ||||||||||||
| Layaway liabilities (e) | (12,716 | ) | — | (12,716 | ) | — | |||||||||||
| Security tags (f) | 11,657 | — | 11,657 | — | |||||||||||||
| Income tax expense | 107,478 | 86,702 | 205,965 | 171,175 | |||||||||||||
| Adjusted EBIT | 433,966 | 359,521 | 887,082 | 745,417 | |||||||||||||
| Depreciation and amortization (g) | 120,338 | 91,481 | 406,214 | 347,575 | |||||||||||||
| Adjusted EBITDA | $ | 554,304 | $ | 451,002 | $ | 1,293,296 | $ | 1,092,992 | |||||||||
The following table shows the Company’s reconciliation of SG&A to Adjusted SG&A for the periods indicated:
| (unaudited) | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| January 31, | February 1, | January 31, | February 1, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Reconciliation of SG&A to Adjusted SG&A: | ||||||||||||||||
| SG&A | $ | 1,051,673 | $ | 964,668 | $ | 3,817,180 | $ | 3,546,967 | ||||||||
| Net favorable lease costs (a) | (1,781 | ) | (2,230 | ) | (7,742 | ) | (11,189 | ) | ||||||||
| Product sourcing costs | (232,016 | ) | (216,831 | ) | (851,831 | ) | (800,354 | ) | ||||||||
| Litigation matters (d) | 80 | — | (4,175 | ) | (2,525 | ) | ||||||||||
| Adjusted SG&A | $ | 817,956 | $ | 745,607 | $ | 2,953,432 | $ | 2,732,899 | ||||||||
The following table shows the reconciliation of the Company’s effective tax rates on a GAAP basis to the Adjusted Effective Tax Rates for the periods indicated:
| (unaudited) | ||||||||||||||||
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| January 31, | February 1, | January 31, | February 1, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Effective tax rate on a GAAP basis | 25.7 | % | 25.0 | % | 25.2 | % | 25.4 | % | ||||||||
| Adjustments to arrive at Adjusted Effective Tax Rate (j) | — | (0.1 | ) | — | — | |||||||||||
| Adjusted Effective Tax Rate | 25.7 | % | 24.9 | % | 25.2 | % | 25.4 | % | ||||||||
The following table shows the Company’s reconciliation of net income to Adjusted Net Income for the prior period Adjusted EPS amounts used in this press release for the periods indicated:
| (unaudited) | ||||
| (in thousands, except per share data) | ||||
| Three Months Ended | ||||
| May 3, 2025 | ||||
| Reconciliation of net income to Adjusted Net Income: | ||||
| Net income | $ | 100,833 | ||
| Net favorable lease costs (a) | 2,138 | |||
| Costs related to debt amendments (c) | 112 | |||
| Impairment charges | 516 | |||
| Litigation matters (d) | (416 | ) | ||
| Tax effect (h) | (601 | ) | ||
| Adjusted Net Income | $ | 102,582 | ||
| Diluted weighted average shares outstanding (i) | 64,005 | |||
| Adjusted Earnings per Share | $ | 1.60 | ||
| (a) | Net favorable lease costs represent the non-cash expense associated with favorable and unfavorable leases that were recorded as a result of purchase accounting related to the April 13, 2006 Bain Capital acquisition of Burlington Coat Factory Warehouse Corporation (the Merger Transaction). These expenses are recorded in the line item “Selling, general and administrative expenses” in our Consolidated Statements of Income. |
| (b) | Fiscal 2024 amount relates to the partial write-off of the original issue discount and deferred debt costs related to the September 2024 extension and upsize of the Term Loan Facility. |
| (c) | Fiscal 2025 amount relates to the settlement of the 2025 Convertible Notes during the first quarter of Fiscal 2025. Fiscal 2024 amount relates to the September 2024 extension and upsizing of the Term Loan Facility. |
| (d) | Represents amounts charged for certain litigation matters. |
| (e) | Represents a one-time settlement of certain layaway liabilities on our Consolidated Balance Sheet, resulting in a gain. |
| (f) | Represents a one-time write-off to amortization related to certain merchandise security tags on our Consolidated Balance Sheet. |
| (g) | Depreciation and amortization excludes the write-off of security tags in item (f). |
| (h) | Tax effect is calculated based on the effective tax rates (before discrete items) for the respective periods, adjusted for the tax effect for the impact of items (a) through (f). |
| (i) | Diluted weighted average shares outstanding starts with basic shares outstanding and adds back any potentially dilutive securities outstanding during the period. |
| (j) | Adjustments for items excluded from Adjusted Net Income. These items have been described in the table above reconciling GAAP net income to Adjusted Net Income. |
FAQ
What were Burlington (BURL) fourth quarter sales and comparable store sales in Fiscal 2025?
How did Burlington (BURL) report earnings per share for Fiscal 2025 and Q4 2025?
What liquidity and debt levels did Burlington (BURL) report at the end of Q4 Fiscal 2025?
What guidance did Burlington (BURL) provide for Fiscal 2026 sales, EPS, and store growth?
Why did Burlington (BURL) expect first quarter Fiscal 2026 margins to decline versus prior year?
