Burlington Stores Inc. reported adjusted earnings per share of $2.37 for the second quarter, beating analyst expectations of $2.17 and marking a 38% increase from the same period last year. Revenue totaled $3 billion, slightly below the $3.02 billion consensus estimate, though total sales rose 11% year-over-year to $2.998 billion.
Comparable store sales increased 2%, following a 5% gain in the prior-year period. The company's operating margin expanded by 100 basis points, contributing to the adjusted EPS growth. Burlington also received $55 million in tariff refunds during the quarter, with plans to reinvest roughly 40% of these funds to enhance customer value in the second half of the year.
Shares of Burlington Stores declined 2.88% in after-hours trading following the results. The off-price retailer operates 1,287 stores and plans to open approximately 115 net new locations in fiscal 2026.
For the full fiscal year 2026, Burlington raised its adjusted EPS guidance to a range of $11.77 to $11.97, up from prior expectations. The midpoint of $11.87 represents a 17% increase from the prior year's adjusted EPS of $10.17. The company projects comparable store sales growth of 3% to 4% and total sales growth of 10% to 11% for the year.
Third-quarter adjusted EPS is expected to fall between $1.60 and $1.70, below the $1.80 reported in the prior-year period, as Burlington prioritizes reinvesting tariff refunds over short-term earnings gains. CEO Michael O'Sullivan highlighted the retailer's 15th consecutive quarter of double-digit EPS growth, attributing it to sustained sales growth and margin expansion.
