Burlington Earnings Jump, Raises 2026 Outlook
Burlington earnings beat and the company raised its fiscal 2026 outlook after a strong Q1, tightening positioning and likely supporting shares.
KEY TAKEAWAYS
- Q1 sales were about $2.85 billion, comps rose 6% and lease-adjusted EPS was $2.10.
- Raised fiscal 2026 guidance to $11.45-$11.80 adjusted EPS and 9%-11% total sales growth.
- Gross margin expanded 30 basis points, aided by better markdown execution and supply-chain productivity.
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Burlington Stores, Inc. (NYSE: BURL) reported fiscal Q1 2026 results for the quarter ended May 2, 2026, lifting Burlington earnings and prompting the company to raise its full-year fiscal 2026 outlook after management cited broad-based comparable-store strength and margin improvements.
Q1 Results and Raised Guidance
The company disclosed results in a GlobeNewswire press release and Form 8-K on May 28, 2026. Total sales reached about $2.85 billion, up 14.0% year over year, while comparable-store sales rose 6.0%. GAAP net income was $115 million, with diluted earnings per share (EPS) from continuing operations of $1.79. On a lease-adjusted basis, Burlington reported adjusted EPS of $2.10; a broader non-GAAP reconciliation showed adjusted EPS of $2.01. The release noted this marked the 14th consecutive quarter of double-digit EPS growth.
Following the quarter, Burlington raised its fiscal 2026 outlook, projecting total sales growth of 9.0%–11.0%, comparable-store sales of 2.0%–4.0%, adjusted EBIT-margin expansion of 10–30 basis points, and adjusted EPS of $11.45–$11.80, compared with $10.17 a year earlier. Management attributed the updated outlook to continued trade-down and value-seeking behavior among shoppers, expecting merchandise-margin and supply-chain productivity gains to more than offset cost pressures, assuming stable demand and consistent inventory availability.
Margins and Capital Allocation
Gross margin expanded to 44.1% from 43.8% a year earlier, a 30-basis-point improvement attributed to better markdown execution and supply-chain productivity gains. Adjusted EBITDA totaled $276 million, with the adjusted EBITDA margin increasing roughly 20 basis points. Adjusted net income on a non-GAAP basis was $129 million.
At quarter end, Burlington held about $1.9 billion in total debt and approximately $1.7 billion in total liquidity. During the quarter, the company repurchased $111 million principal amount of convertible notes and $81 million of common stock, reflecting an active capital-allocation approach alongside expansion plans.
The retailer operates about 1,108 stores. A trade report noted the store count rose by 127 during the quarter, indicating continued unit growth as Burlington targets value-oriented shoppers.
