In announcing strong first-quarter financial results, Burlington Stores raised its full-year guidance and said it plans to open 115 new locations in fiscal 2026.
Net income was $114.7 million, or $1.79 per diluted share, versus $100.8 million, or $1.58 per diluted share, in the year-earlier quarter. Adjusted for one-time events, net income was $128.9 million, or $2.01 per diluted share, versus $102.6 million, or $1.60 per diluted share, in the quarter a year prior, the company noted.
A Zacks Investment Research analyst consensus estimate for Burlington’s first quarter called for earnings of $1.77 per diluted share and revenue of $2.81 billion.
Total sales increased 14% to $2.85 billion year over year, the company reported, while comparable sales increased 6%. Total revenue came in at $2.86 billion versus $2.5 billion in the year-before period.
Burlington raised its guidance for the fiscal year, forecasting a comp increase of 2% to 4%, and adjusted EPS of $11.45 to $11.80. As it posted fourth-quarter numbers, the company set guidance for fiscal 2026 that included a comp increase in the range of 1% to 3%, with adjusted earnings per share in the range of $10.95 to $11.45.
On a conference call, Michael O’Sullivan, Burlington’s CEO, said the company had a strong first-quarter seasonal result due to its initiatives in better allocation and localization. As the company continues to foster a brick-and-mortar expansion, Burlington opened 40 new stores, including six relocations and closed four in the first quarter for a net increase of 30 stores. O’Sullivan added the company now expects to open 115 net new stores in the current fiscal year, up from 110 as previously announced.
O’Sullivan said in announcing the financial results, “We are pleased with our strong performance in the first quarter. Adjusted EPS grew 26% versus the first quarter of last year, which represented our 14th consecutive quarter of double-digit EPS growth. This track record demonstrates our ability to consistently convert sales into operating margin expansion, thereby driving strong earnings flow-through. Total sales increased 14%, while comparable store sales increased 6%, well ahead of our guidance. Adjusted EBIT margin increased 20 basis points, again well ahead of our guidance. This operating margin expansion was driven by ahead-of-plan sales, higher gross margin and leverage on supply-chain expenses.”
