We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Burlington Stores Q2 revenue rose 9.7% to $2.71B, topping the Zacks Consensus Estimate.
Comparable store sales climbed 5%, fueled by merchandising, supply chain gains and new stores.
Management lifted 2025 sales, comps, EBIT margin and EPS guidance after a robust quarter.
Burlington Stores, Inc. (BURL - Free Report) reported second-quarter fiscal 2025 results, wherein revenues and earnings grew year over year and surpassed the Zacks Consensus Estimate.
Burlington Stores achieved higher sales year over year in the second quarter, driven by effective merchandising, supply-chain improvements and store-expansion efforts. Earnings exceeded expectations, supported by higher sales, margins and operational efficiencies.
Management has raised fiscal 2025 guidance for comparable store sales, total sales, adjusted EBIT margin and adjusted EPS. Driven by solid second-quarter earnings and higher guidance, BURL’s shares have jumped nearly 5% during trading hours yesterday. In the past three months, this Zacks Rank #3 (Hold) company has gained 29.3% against the industry’s 1.7% dip.
More on Burlington Stores’ Q2 Financial Results
Burlington Stores reported adjusted earnings of $1.72 per share, which surpassed the Zacks Consensus Estimate of $1.27. The bottom line rose 39% from the year-ago quarter to 42 cents, which is above the company’s high-end guided range. Robust merchandise margins and cost efficiencies across the P&L aided the bottom line.
Burlington Stores, Inc. Price, Consensus and EPS Surprise
Total revenues of $2,705.1 million jumped 9.7% from the prior-year quarter and topped the Zacks Consensus Estimate of $2,639 million. Net revenues climbed nearly 10% to $2,701 million, while other revenues fell 7% to $4 million. The company’s comparable store sales increased 5% year over year. Our model had anticipated 1% rise in comparable store sales for the fiscal second quarter.
Insight Into BURL’s Margins
The gross margin was 43.7%, up 90 basis points (bps) from the second quarter of fiscal 2024. This also surpassed our estimate of gross margin of 43.2%. The merchandise margin increased 60 bps, backed by lower shortage and markdowns, while freight expenses improved 30 bps as a percentage of net sales.
Adjusted selling, general and administrative (SG&A) expenses rose 9.7% year over year to $732.3 million. Adjusted SG&A expenses, as a percentage of net sales, were 26.7%, down 30 bps from the second quarter of fiscal 2024. We estimated adjusted SG&A expenses, as a percentage of net sales, to be 26.5%.
Product sourcing costs were $209 million, up from $191 million in the year-ago quarter. Such costs comprise the processing goods costs via its supply chain and buying expenses.
Adjusted EBITDA increased 25.4% from the second quarter of fiscal 2024 to $257 million, excluding $11 million of expenses related to the bankruptcy-acquired leases. Adjusted EBIT was $162 million, up 37.3% from the year-ago quarter.
BURL’s Financial Snapshot: Cash, Debt and Equity
The company ended the reported quarter with cash and cash equivalents of $747.6 million, long-term debt of $2.02 billion and stockholders’ equity of $1.45 billion. BURL exited the fiscal second quarter with $1.69 billion of liquidity, including $748 million of unrestricted cash and $946 million available under its ABL facility.
Burlington Stores ended the quarter with $2.04 billion of outstanding total debt, comprising $1.73 billion under its term-loan facility, $297 million of convertible notes and no borrowings under its ABL facility.
The company bought back 102,474 shares for $26 million under its share repurchase plan in the fiscal second quarter. As of Aug. 2, 2025, BURL had $632 million remaining under its existing share repurchase authorizations.
BURL’s Q3 & Q4 Guidance
Management cited that tariffs are likely to put incremental pressure on the back half. Nevertheless, the company’s revised guidance assumes that it will be able to offset most, but not all, of such incremental tariff pressure. For the third quarter of fiscal 2025, the company expects total sales growth of 5-7%, with comparable store sales expected to remain between flat and up 2% year over year. The adjusted EBIT margin is projected in the range of down 20 bps to flat year over year, excluding about $10 million of expected expenses related to bankruptcy-acquired leases in the fiscal third quarter.
Third-quarter adjusted earnings per share (EPS) are expected to be between $1.50 and $1.60 compared with $1.55 earned in the prior-year quarter. Management expects an effective tax rate of almost 25%.
For the fourth quarter of fiscal 2025, BURL expects comparable store sales growth of flat to 2% and total sales growth of 7-9%. EBIT margins are likely to range from a decline of 10 bps to an increase of 30 bps and adjusted EPS in the band of $4.30-$4.60. The fourth-quarter guidance excludes nearly $7 million of expenses related to the bankruptcy-acquired leases.
Fiscal 2025 View for BURL
For fiscal 2025, the company now expects total sales to increase in the band of 7-8% year over year, versus the prior expectation of a 6-8% rise. This projection now assumes comparable store sales to rise 1-2% versus the earlier anticipation between 0% and 2%. BURL recorded sales growth of 11% and comparable store sales increase of 4% in the 52 weeks ending Feb. 1, 2025. Capital expenditures, net of landlord allowances, are expected to be approximately $950 million.
Depreciation and amortization are likely to be $385 million, while net interest expenses are projected to be $50 million. Management forecasts an adjusted effective tax rate of about 25% for the current fiscal year.
The company plans to open around 100 net stores. The adjusted EBIT margin is expected to improve 20-40 bps from the previous fiscal year, excluding $33 million of planned costs with respect to the bankruptcy-acquired leases in fiscal 2025. Adjusted EPS is now projected to be between $9.19 and $9.59, higher than $8.70-$9.30 expected earlier and $8.35 earned in the prior fiscal year. This excludes $25 million, net of tax, of expected expenses related to bankruptcy-acquired leases in fiscal 2025 and assumes a count of roughly 64 million shares.
The consensus estimate for Levi Strauss’ current financial-year EPS indicates growth of 4% from the year-ago figure. LEVI delivered an average earnings surprise of 25.9% in the trailing four quarters.
Genesco Inc. (GCO - Free Report) operates as a retailer and wholesaler of footwear, apparel and accessories, carrying a Zacks Rank #2 (Buy) at present. GCO delivered a trailing four-quarter earnings surprise of 32.4%, on average.
The Zacks Consensus Estimate for Genesco’s current fiscal-year EPS and sales indicates growth of 66% and 1.7%, respectively, from the year-ago period’s reported figures.
Allbirds, Inc. (BIRD - Free Report) , a lifestyle brand, currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 20.7%, on average.
The Zacks Consensus Estimate for BIRD’s current financial-year EPS indicates growth of 18.3% from the year-ago figure.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Burlington Stores' Q2 Earnings Beat Estimates on Higher Sales & Margins
Key Takeaways
Burlington Stores, Inc. (BURL - Free Report) reported second-quarter fiscal 2025 results, wherein revenues and earnings grew year over year and surpassed the Zacks Consensus Estimate.
Burlington Stores achieved higher sales year over year in the second quarter, driven by effective merchandising, supply-chain improvements and store-expansion efforts. Earnings exceeded expectations, supported by higher sales, margins and operational efficiencies.
Management has raised fiscal 2025 guidance for comparable store sales, total sales, adjusted EBIT margin and adjusted EPS. Driven by solid second-quarter earnings and higher guidance, BURL’s shares have jumped nearly 5% during trading hours yesterday. In the past three months, this Zacks Rank #3 (Hold) company has gained 29.3% against the industry’s 1.7% dip.
More on Burlington Stores’ Q2 Financial Results
Burlington Stores reported adjusted earnings of $1.72 per share, which surpassed the Zacks Consensus Estimate of $1.27. The bottom line rose 39% from the year-ago quarter to 42 cents, which is above the company’s high-end guided range. Robust merchandise margins and cost efficiencies across the P&L aided the bottom line.
Burlington Stores, Inc. Price, Consensus and EPS Surprise
Burlington Stores, Inc. price-consensus-eps-surprise-chart | Burlington Stores, Inc. Quote
Total revenues of $2,705.1 million jumped 9.7% from the prior-year quarter and topped the Zacks Consensus Estimate of $2,639 million. Net revenues climbed nearly 10% to $2,701 million, while other revenues fell 7% to $4 million. The company’s comparable store sales increased 5% year over year. Our model had anticipated 1% rise in comparable store sales for the fiscal second quarter.
Insight Into BURL’s Margins
The gross margin was 43.7%, up 90 basis points (bps) from the second quarter of fiscal 2024. This also surpassed our estimate of gross margin of 43.2%. The merchandise margin increased 60 bps, backed by lower shortage and markdowns, while freight expenses improved 30 bps as a percentage of net sales.
Adjusted selling, general and administrative (SG&A) expenses rose 9.7% year over year to $732.3 million. Adjusted SG&A expenses, as a percentage of net sales, were 26.7%, down 30 bps from the second quarter of fiscal 2024. We estimated adjusted SG&A expenses, as a percentage of net sales, to be 26.5%.
Product sourcing costs were $209 million, up from $191 million in the year-ago quarter. Such costs comprise the processing goods costs via its supply chain and buying expenses.
Adjusted EBITDA increased 25.4% from the second quarter of fiscal 2024 to $257 million, excluding $11 million of expenses related to the bankruptcy-acquired leases. Adjusted EBIT was $162 million, up 37.3% from the year-ago quarter.
BURL’s Financial Snapshot: Cash, Debt and Equity
The company ended the reported quarter with cash and cash equivalents of $747.6 million, long-term debt of $2.02 billion and stockholders’ equity of $1.45 billion. BURL exited the fiscal second quarter with $1.69 billion of liquidity, including $748 million of unrestricted cash and $946 million available under its ABL facility.
Burlington Stores ended the quarter with $2.04 billion of outstanding total debt, comprising $1.73 billion under its term-loan facility, $297 million of convertible notes and no borrowings under its ABL facility.
The company bought back 102,474 shares for $26 million under its share repurchase plan in the fiscal second quarter. As of Aug. 2, 2025, BURL had $632 million remaining under its existing share repurchase authorizations.
BURL’s Q3 & Q4 Guidance
Management cited that tariffs are likely to put incremental pressure on the back half. Nevertheless, the company’s revised guidance assumes that it will be able to offset most, but not all, of such incremental tariff pressure. For the third quarter of fiscal 2025, the company expects total sales growth of 5-7%, with comparable store sales expected to remain between flat and up 2% year over year. The adjusted EBIT margin is projected in the range of down 20 bps to flat year over year, excluding about $10 million of expected expenses related to bankruptcy-acquired leases in the fiscal third quarter.
Third-quarter adjusted earnings per share (EPS) are expected to be between $1.50 and $1.60 compared with $1.55 earned in the prior-year quarter. Management expects an effective tax rate of almost 25%.
For the fourth quarter of fiscal 2025, BURL expects comparable store sales growth of flat to 2% and total sales growth of 7-9%. EBIT margins are likely to range from a decline of 10 bps to an increase of 30 bps and adjusted EPS in the band of $4.30-$4.60. The fourth-quarter guidance excludes nearly $7 million of expenses related to the bankruptcy-acquired leases.
Fiscal 2025 View for BURL
For fiscal 2025, the company now expects total sales to increase in the band of 7-8% year over year, versus the prior expectation of a 6-8% rise. This projection now assumes comparable store sales to rise 1-2% versus the earlier anticipation between 0% and 2%. BURL recorded sales growth of 11% and comparable store sales increase of 4% in the 52 weeks ending Feb. 1, 2025. Capital expenditures, net of landlord allowances, are expected to be approximately $950 million.
Depreciation and amortization are likely to be $385 million, while net interest expenses are projected to be $50 million. Management forecasts an adjusted effective tax rate of about 25% for the current fiscal year.
The company plans to open around 100 net stores. The adjusted EBIT margin is expected to improve 20-40 bps from the previous fiscal year, excluding $33 million of planned costs with respect to the bankruptcy-acquired leases in fiscal 2025. Adjusted EPS is now projected to be between $9.19 and $9.59, higher than $8.70-$9.30 expected earlier and $8.35 earned in the prior fiscal year. This excludes $25 million, net of tax, of expected expenses related to bankruptcy-acquired leases in fiscal 2025 and assumes a count of roughly 64 million shares.
Key Picks
Levi Strauss & Co. (LEVI - Free Report) , designer and marketer of jeans, casual wear and related accessories, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Levi Strauss’ current financial-year EPS indicates growth of 4% from the year-ago figure. LEVI delivered an average earnings surprise of 25.9% in the trailing four quarters.
Genesco Inc. (GCO - Free Report) operates as a retailer and wholesaler of footwear, apparel and accessories, carrying a Zacks Rank #2 (Buy) at present. GCO delivered a trailing four-quarter earnings surprise of 32.4%, on average.
The Zacks Consensus Estimate for Genesco’s current fiscal-year EPS and sales indicates growth of 66% and 1.7%, respectively, from the year-ago period’s reported figures.
Allbirds, Inc. (BIRD - Free Report) , a lifestyle brand, currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 20.7%, on average.
The Zacks Consensus Estimate for BIRD’s current financial-year EPS indicates growth of 18.3% from the year-ago figure.