Burlington Stores, Inc. (BURL)

Burlington Stores reported sales of $2,998 million for the quarter ended August 1, 2026, up 11 percent from a year earlier 3. Comparable store sales, a measure that counts only stores open in both periods, rose 2 percent 3. Net income was $184 million, or $2.88 per share, and the quarter included $55 million of tariff refunds 3.

On February 20, 2026, the U.S. Supreme Court limited the authority to impose tariffs under the International Emergency Economic Powers Act 2. The company then received refunds that cut its cost of sales by $55.5 million in the quarter 2.

Chief executive Michael O'Sullivan said the company intends to put the refunds back into sharper prices for shoppers in the second half of the year, so the direct effect on full-year earnings is neutral 3. The company also says it is selecting a site to relocate its corporate headquarters, and the timing and cost are still uncertain 2.

Burlington opened its first store in Burlington, New Jersey in 1972, selling mostly coats and outerwear 1. It had 13 stores in 1980 and 1,212 stores by January 31, 2026, in 46 states and Puerto Rico 1.

On March 22, 2020, the company closed all of its stores, distribution centers and corporate offices to limit the spread of COVID-19, and it began reopening stores on May 11, 2020 5. In Fiscal 2020 net sales fell $1,509.7 million, or 20.8 percent, to $5,751.5 million 5. The company recorded a net loss of $216.5 million 5.

Sales then fell again in Fiscal 2022, by $622.0 million, or 6.7 percent, to $8,684.5 million 6. Comparable store sales dropped 13 percent after a 15 percent rise a year earlier, which the company tied to economic pressure on its core customers and heavy promotions across retail 6.

Growth returned in Fiscal 2023, when net sales improved $1,024.4 million, or 11.8 percent, to $9,709.0 million 7. The company credited 80 net new stores, a 4 percent rise in comparable store sales and $138.0 million from a 53rd week 7.

In its latest full year, net sales rose $932.9 million, or 8.8 percent, to $11,549.6 million 1. New and non-comparable stores added $691.4 million, and comparable store sales rose 2 percent 1.

Net income was $610.2 million, up from $503.6 million 1. Gross margin, the share of sales left after the cost of goods, widened to 43.8 percent from 43.2 percent on better merchandise margin and freight costs 1.

Capital spending, net of landlord allowances, reached $1,104.1 million 1. Of that, $464.0 million went to supply chain work, largely the purchase of a distribution center in California and the build-out of one in Georgia 1.

What it sells

Burlington is an off-price retailer: it offers branded apparel, shoes, accessories and home goods, and says its prices run up to 60 percent below other retailers' 1. Over 99 percent of net sales come from stores run as Burlington Stores 1.

It purchases opportunistically and mostly in-season, which lets it chase whatever is selling and switch between suppliers 1. No brand made up more than 5 percent of its net purchases, and it has no long-term purchase commitments with suppliers 1.

By category, accessories and shoes were 28 percent of sales, ladies apparel 20 percent, home 20 percent, men's apparel 17 percent, kids apparel and baby 12 percent and outerwear 3 percent 1.

Inventory was $1,541 million at the end of the second quarter, and 43 percent of it was reserve inventory, goods stored for release later in the season or in a later season 3.

Stores and people

The company had 1,287 stores on August 1, 2026, after opening 91 stores in six months, 12 of them relocations, and closing four 2. It owns the land or buildings of 19 stores and leases 1,193 others 1.

Six distribution centers shipped more than 99 percent of merchandise units to stores 1. Three are on the east coast, in New Jersey, and three on the west coast, in California 1.

The company employed 83,309 associates on January 31, 2026, of whom 79 percent were part-time or seasonal and 91 percent worked in stores 1.

Michael O'Sullivan is chief executive 3. Matthew Pasch, the chief human resources officer, departed effective September 1, 2026, and John Pershing was expected to succeed him effective October 2026 4.

Rivals and problems

The company competes with department stores, off-price retailers, specialty stores, online retailers, discount stores, wholesale clubs and outlet stores 1. It calls the low-income shopper its core customer and warns that prolonged inflation could hurt that shopper's spending 1.

It is party to wage and hour class actions, California representative claims and other lawsuits from time to time 1. At the end of the second quarter it owed $1,914 million in total debt, including $1,712 million on a term loan and $186 million in convertible notes 3.

The umbrella, in words

Nearly all sales come under one brand, Burlington Stores 1. The subsidiaries listed in Exhibit 21 to the annual report still carry the Burlington Coat Factory name, among them Burlington Holdings, LLC and Burlington Merchandising Corporation 8. Two are named for the Georgia and Arizona distribution sites 8.

JPMorgan Chase & Co. reported in its latest Schedule 13G/A that it beneficially owns 6,913,959 shares, 11 percent of the common stock 9. A filer that owns shares this way reports an ownership stake, not a vote on control 9.

It owns about 235 acres in Burlington and Florence, New Jersey, the site of its corporate campus, and about 43 acres in Edgewater Park, New Jersey 1. It leases about 171,000 square feet of office space in New York City and 50,000 in Los Angeles 1.

For the 52 weeks ending January 30, 2027, the company expects total sales to rise 10 to 11 percent, with comparable store sales up 3 to 4 percent 3.

It also expects about 115 net new stores, capital spending of about $875 million net of landlord allowances, and earnings per share growth of 16 to 18 percent 3. That spending figure leaves out any cost of relocating its corporate headquarters, which it is still evaluating 3.

The company plans to put about 40 percent of the tariff refunds back into prices in the third quarter and about 60 percent in the fourth 3.

Its long-term aim is 2,000 stores, and it says it is opening at least 100 net new stores a year and striving to exceed that 2.

The Georgia distribution center, about 2,057,000 square feet, is expected to be fully operational in Fiscal 2026 1. A distribution center on 178 acres in Buckeye, Arizona is expected to be operational in Fiscal 2028 1.