Burlington Stores reported a strong fourth quarter and full year 2025, driven by robust sales growth and improved margins. The company demonstrated effective execution in offsetting tariff impacts and delivered significant earnings per share growth, leading to a confident outlook for fiscal year 2026.
Q4 total sales increased 11% to $3,643 million, with comparable store sales up 4% on top of a 6% increase in the prior year, representing a strong 10% two-year comp stack.
positiveQ4 Adjusted EBIT margin increased 100 basis points year-over-year and was 50 basis points above the high end of expectations.
positiveFull year 2025 Adjusted EPS increased 22% to $10.17, driven by an 80 basis point increase in Adjusted EBIT margin.
positiveCompany ended Q4 FY2025 with $2,159 million in liquidity, including $1,233 million in unrestricted cash.
positiveMerchandise inventories increased 5% year-over-year to $1,312 million, while comparable store inventories increased 12%.
attentionThe company incurred $35 million in expenses associated with bankruptcy acquired leases in FY2025, with an additional $8 million anticipated for FY2026.
attentionQ1 FY2026 guidance anticipates Adjusted EBIT margin to decrease 60 to 100 basis points versus Q1 FY2025.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
We are very pleased with our strong performance in the fourth quarter. Comparable store sales increased 4%, on top of a robust 6% increase the prior year. This represents a very strong 10% two-year comp stack.
When tariffs were introduced in April, we took actions to offset the negative margin impact of tariffs. These actions were spectacularly successful in driving earnings.
We are feeling bullish about our prospects in Fiscal 2026. There are external and internal factors that are driving this optimism.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.