Burlington Stores Inc. (NYSE:BURL) shares soared in Thursday trading after the company reported fourth-quarter 2025 results that beat analyst estimates on both revenue and adjusted earnings.

Fourth Quarter Results

Total sales rose 11% to $3.65 billion, topping the $3.57 billion estimate. Adjusted EPS of $4.99 beat the $4.75 consensus, and came in above the company’s own guidance range of $4.50–$4.70. GAAP diluted EPS was $4.84.

Comparable store sales grew 4% on top of a 6% gain in the prior-year quarter, producing a 10% two-year comp stack.

Gross margin expanded 80 basis points to 43.7%, driven by 60 basis points of merchandise margin improvement and 20 basis points of freight favorability.

Adjusted SG&A improved 40 basis points as a percentage of sales. Adjusted EBITDA rose to $562 million from $456 million, up 150 basis points as a percentage of sales.

Full Year Fiscal 2025

Total sales grew 9% to $11.5 billion. Adjusted EPS was $10.17, up 22% year-over-year. GAAP diluted EPS was $9.51. Adjusted EBIT margin was 8.0%, up 80 basis points. Operating cash flow was $1.23 billion.

The company ended the year with $2.16 billion in total liquidity, including $1.23 billion in cash. Total debt was $2.08 billion, comprised of $1.72 billion on its Term Loan and $297 million in Convertible Notes.

CEO Michael O’Sullivan stated, “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. Despite tariffs, Adjusted EBIT margin increased 80 basis points, resulting in 22% earnings per share growth.”

Inventory & Capital Allocation

Comparable store inventories rose 12%, while reserve inventory declined to 40% of total from 46% a year ago, signaling a shift toward in-store-ready merchandise.

Burlington repurchased $59M in shares during the quarter, with $385M remaining under its buyback authorization.

Outlook

For the first quarter of Fiscal 2026, the company guided Adjusted EPS of $1.60–$1.75, below the $1.82 estimate. Adjusted EBIT margin expected to decrease 60–100 basis points.

Sales guidance of $2.73–$2.78 billion brackets the $2.77 billion consensus.

For full-year Fiscal 2026, Burlington guided Adjusted EPS of $10.95–$11.45 versus the $11.26 estimate.

The company sees total sales of $12.49–$12.72 billion, above the $12.62 billion consensus. Comparable store sales are expected to grow 1%–3%.

The company plans to open 110 net-new stores, a new distribution center in Savannah, GA, and to incur capital expenditures of approximately $875 million, net of landlord allowances.

O’Sullivan added: “We think that there may be potential upside to our expectations, and we have positioned the business to aggressively chase sales.”

BURL Price Action: Burlington Stores shares were up 6.21% at $319.42 at the time of publication on Thursday, according to Benzinga Pro data.

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