Burlington Stores reported first-quarter results that cleared its own guidance and raised its full-year outlook, marking the company's 14th consecutive quarter of double-digit earnings-per-share growth.
For the three months ending May 2, net sales climbed to $2.85 billion, a 14% year-over-year gain, with same-store sales posting a 6% increase. On a GAAP basis, earnings came to $114.7 million, translating to $1.79 per diluted share, versus $100.8 million, or $1.58 per diluted share, in the year-ago period. The revenue figure came in ahead of analyst consensus estimates of roughly $2.8 billion, according to The Wall Street Journal.
Stripping out costs tied to bankruptcy-acquired leases and certain other items, per-share earnings on an adjusted basis reached $2.10, up from $1.67 in the prior-year quarter, a 26% advance. The gross margin rate came in at 44.1% of net sales, 30 basis points wider than a year ago, with merchandise margin contributing a 20-basis-point lift and lower freight costs adding another 10 basis points.
The updated full-year adjusted EPS target of $11.45 to $11.80 represents between 13% and 16% growth over last year's $10.17 result. Management characterized the guidance revision as a direct translation of first-quarter outperformance into the annual outlook, with no incremental benefit retained. Full-year revenue is now projected to grow 9% to 11%, with the same-store sales assumption set at a 2% to 4% gain.
"We are raising our full year Fiscal 2026 sales and earnings guidance, passing through the entire upside from the first quarter to the full year," CEO Michael O'Sullivan said in a statement. "These numbers underscore our ability to convert incremental comp sales into very strong earnings growth."
Looking ahead to the fiscal second quarter, the company guided for total revenue growth of 10% to 12% and same-store sales of 1% to 3%, with adjusted EPS expected between $2.05 and $2.20, versus $1.72 in the year-ago quarter.
At quarter's end, available liquidity totaled approximately $1.69 billion, with $747 million held as unrestricted cash and an additional $942 million accessible through the company's revolving credit line. Outstanding borrowings across all facilities amounted to roughly $1.92 billion. Share buybacks during the quarter totaled $81 million, leaving $304 million of capacity available under the existing repurchase program. On the expansion front, the retailer is targeting roughly 115 net store additions in fiscal 2026, with net capital spending projected at approximately $875 million after landlord contributions.