Burlington Stores Inc. (NYSE:BURL) shares declined 2.88% on Thursday after the off-price retailer reported second-quarter revenue slightly below Wall Street expectations, despite delivering adjusted earnings comfortably ahead of forecasts.
Adjusted earnings per share reached $2.37, exceeding the analyst consensus of $2.17
Revenue came in at approximately $3 billion, narrowly below expectations of $3.02 billion. Total sales increased 11% year over year to $2.998 billion, while comparable store sales advanced 2%. The comparable sales growth followed a 5% increase in the corresponding period last year.
Earnings increase as operating margin expands Burlington’s adjusted EPS increased 38% compared with the second quarter of fiscal 2025, supported by a 100-basis-point improvement in operating margin. The company also received $55 million in tariff refunds during the quarter. Rather than retaining the entire benefit, Burlington plans to reinvest part of the proceeds into offering stronger value to customers during the second half of the year. “We are pleased with our strong financial performance in the second quarter,” said CEO Michael O’Sullivan. “This represented our 15th consecutive quarter of double digit EPS growth, reflecting our ability to consistently convert sales growth into margin expansion and exceptional earnings growth.” Burlington raises full-year profit outlook Following the quarterly performance, Burlington increased its adjusted EPS guidance for fiscal 2026 to between $11.77 and $11.97.