Burlington Stores Earnings Lift Guidance

Burlington Stores, Inc. (NYSE: BURL) reported stronger third-quarter sales and raised its full-year adjusted EPS guidance on Nov. 25, 2025. Management attributed the upgrade to margin expansion and an early-season recovery in store traffic.

Quarter Results and Margins

The company said third-quarter net sales reached $2,706 million, a 7.0% increase year over year, with comparable store sales rising 1.0% for the quarter ended Nov. 1, 2025. On a GAAP basis, Burlington reported net income of $105 million and diluted earnings per share of $1.63. Adjusted net income was $116 million, with adjusted EPS of $1.80, up 16.0% year over year. Adjusted EBIT rose 60 basis points to $167 million, adjusted EBITDA totaled $266 million, and gross margin was 44.2% of net sales.

Guidance, Traffic, and Capital

Burlington raised its full-year adjusted EPS guidance to a range of $9.69 to $9.89 and set fourth-quarter adjusted EPS guidance between $4.50 and $4.70, compared with $4.13 a year earlier. The outlook excludes anticipated expenses related to bankruptcy-acquired leases, with the fourth-quarter guidance excluding $5 million of such expenses, net of tax. The company based its guidance on the continuation of current sales and margin trends and disclosed no material regulatory or approval issues.

Management reported that store traffic dropped sharply after the back-to-school period due to unseasonably warm weather in major markets. Comparable sales then recovered to mid-single-digit growth by mid-October and remained strong through the first three weeks of November. Some analysts noted Burlington’s sales growth contrasted with consensus expectations, attributing any shortfall to the weather-driven traffic fluctuations.

The company plans to open 104 net new stores in fiscal 2025. Inventories stood at $1,658 million at quarter end, up 15.0% year over year, with reserve inventory accounting for 35.0% of the total. Burlington finished the quarter with liquidity of $1,532 million and total debt of $2,035 million.

The stronger quarter, ongoing margin expansion, and raised profit outlook support Burlington’s expansion plan and reflect a broader shift in consumer spending toward off-price retailing as households face cost pressures.