Burlington updates full year outlook following strong Q2

Off-price retailer Burlington Stores reported double-digit sales and net income growth for the second quarter ended August 1, 2026, driven by higher gross margins and store expansion.

Total sales rose 11 percent year-over-year (YoY) to 3 billion dollars, up from 2.7 billion dollars in the second quarter of fiscal 2025. Comparable store sales increased 2 percent. Net income reached 184 million dollars, or 2.88 dollars per share, compared to 94 million dollars, or 1.47 dollars per share, in the prior-year period.

Burlington reinvests tariff refunds into business

Excluding a 55 million dollar benefit from tariff refunds, adjusted net income stood at 151 million dollars, or 2.37 dollars per share, marking a 38 percent increase YoY. The performance represents the 15th consecutive quarter of double-digit adjusted earnings per share (EPS) growth for the company. Gross margin expanded 250 basis points to 46.2 percent of net sales.

Instead of retaining the 55 million dollars in tariff refunds as a one-time earnings gain, chief executive officer Michael O’Sullivan stated that the group plans to fully reinvest these funds into the business during the second half of fiscal 2026 to offer sharper pricing to consumers.

“Over the last few years, the rising cost of living has made life difficult for many customers,” said O’Sullivan. “At Burlington, we already offer great deals. We plan to use the refunds to make these deals even better.” The company noted that this planned reinvestment will make the direct impact of the tariff refunds earnings-neutral for the full fiscal year.

During the quarter, the retailer repurchased 270,279 shares of common stock for 87 million dollars, leaving 218 million dollars remaining under its current share buyback authorization.

Raised full year outlook

Following its performance beat in the second quarter, Burlington updated its full year fiscal 2026 outlook. Total sales are now expected to increase between 10 percent and 11 percent, supported by comparable store sales growth of 3 percent to 4 percent.

Adjusted EBIT margin is projected to expand by 20 to 40 basis points compared to fiscal 2025.Adjusted EPS is forecasted in the range of 11.77 dollars to 11.97 dollars, compared to 10.17 dollars in fiscal 2025.

The company plans to open approximately 115 net new stores.

For the third quarter of fiscal 2026, Burlington expects total sales to rise between 9 percent and 11 percent, with comparable store sales growth between 1 percent and 3 percent. Adjusted EPS for the quarter is projected to be between 1.60 dollars and 1.70 dollars, reflecting the planned reinvestment of tariff refunds back into product pricing.