Fast Facts:
- Burlington posts 14% total sales growth in Q1
- Comp growth was driven by higher transactions and baskets
- Adjusted EPS grew 26%, marking the 14th consecutive quarter of double-digit EPS growth
- Burlington plans to open 115 net new stores in this year
Burlington, N.J. – Double-digit increases in sales and earnings blew past Burlington Stores‘ expectations for the first quarter.
Total sales jumped 14% on top of a 6% increase in last year’s first quarter, ringing in at $2.85 billion. The growth was broad-based across categories.
“Cumulatively, our business is 30% larger than it was three years ago,” CEO Michael O’Sullivan told inventors during this morning’s earnings call.
Comp store sales were up 6%, led by strength in ladies’ apparel, beauty and accessories along with warm-weather clothing and accessories. Same-store sales growth was driven in equal measure by higher transactions and higher basket size, primarily due to high AUR.
Q1 comp was driven by both an increase in the number of transactions and by a higher basket size due to higher AUR.
See also:
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Burlington had expected operating margin to decline by 50 to 100 basis points during the quarter ended May 2. Instead, that margin expanded by 20 basis points, pushed ahead by higher merchandise margins and stronger supply chain productivity.
Net income was $115 million, or $1.79 per share vs. $101 million, or $1.58 per share last year’s first quarter. Adjusted net Income was $134 million, or $2.10 per share, vs. $107 million, or $1.67 per share for the year-ago, excluding $5 million and $4 million, respectively, of expenses in each period.
“Adjusted EPS grew 26% versus the first quarter of last year, which represented our 14th consecutive quarter of double-digit EPS growth,” said O’Sullivan. “This track record demonstrates our ability to consistently convert sales into operating margin expansion thereby driving strong earnings flow-through.”
The company opened 40 new stores, relocated six units and closed four. For the full fiscal year, Burlington expects to open 115 net new stores – up slightly from the 110 locations it originally planned for the year. It also expects to open 110 net new stores in 2026 and 2027.
Burlington raised its guidance for the full year by passing along the out-performance metrics from the first quarter but did not change its original outlook for the balance of the year.
Burlington now expects total sales to increase in a range of 9% to 11% on top the 9% gain it generation in 2025. It is forecasting fiscal year comp growth of 2% to 4% compared to last year’s 2% increase.
