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Can Burlington Stores' Expansion Pipeline Accelerate 2026 Growth?

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Key Takeaways

  • Burlington opened 73 net new stores in Q3, driving 7% total sales growth and 1% comps.
  • The 2026 target rises to 110 net new stores, aided by 45 Joann lease acquisitions.
  • Steady trends and an expanding pipeline position BURL for solid growth and share gains into 2026.

Burlington Stores, Inc.’s (BURL - Free Report) expanding pipeline of new locations signals confidence in sustaining its accelerated growth into 2026. With strong store additions, opportunistic lease acquisitions, and steady sales momentum, the retailer appears positioned to build on its current strategic gains.

The strength of the company’s new-store pipeline indicates the potential to maintain an accelerated growth pace, reflecting market opportunities and the scalability of its current strategy. The company now targets 110 net new stores in 2026, up from its previous target of 100 net new stores. This acceleration is aided by the 45 leases secured from the Joann Fabrics bankruptcy. While the company originally planned to add about 100 net new stores annually from 2024 through 2028, its recent cadence, consistently exceeding the 100-store mark, suggests a strong likelihood that Burlington could surpass its earlier expansion pace.

In the third quarter of fiscal 2026, Burlington Stores opened 73 net new stores, which included 85 new store openings, 10 relocations, and two closings, bringing the total store count to 1,211, with potential to reach 2,000 stores. The new stores also contributed to the third-quarter performance, with total sales growing 7%, at the high end of guidance, while comparable sales increased 1%. For the fourth quarter of fiscal 2026, the company expects total sales to rise between 7% and 9%, with comparable sales expected to be flat to up 2%.

Burlington’s strengthened expansion pipeline, supported by opportunistic lease additions and consistent new-store productivity, positions the company for another year of solid growth in 2026. With store openings accelerating and sales trends holding steady, the retailer appears well-placed to extend its momentum and capitalize on market share opportunities as it scales its footprint further.

The Zacks Rundown for BURL

In the past six-month period, BURL’s shares have gained 11.9% compared with the industry’s rise of 1.1%. BURL carries a Zacks Rank #3 (Hold).

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Image Source: Zacks Investment Research

From a valuation standpoint, BURL trades at a forward price-to-earnings ratio of 24.89, lower than the industry’s average of 29.92.

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for BURL’s fiscal 2026 and 2027 earnings implies a year-over-year rise of 17.6% and 13%, respectively. 

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks have been discussed below:

Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States. At present, Five Below sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FIVE’s current fiscal-year sales and earnings indicates growth of 19.8% and 7.5%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 62.1%, on average.

American Eagle Outfitters, Inc. (AEO - Free Report) operates as a specialty beauty retailer in the United States, Mexico, and Kuwait. At present, Ulta Beauty flaunts a Zacks Rank of 1.

The Zacks Consensus Estimate for AEO’s current fiscal-year sales implies growth of 1.8% and earnings indicate a decline of 25.3%, respectively, from the year-ago figures. AEO delivered a trailing four-quarter earnings surprise of 35.1%, on average.

Boot Barn Holdings, Inc. (BOOT - Free Report) operates specialty retail stores in the United States and internationally. At present, Boot Barn carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for Boot Barn’s current fiscal-year sales and earnings indicates growth of 16.2% and 20.5%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 5.4%, on average.

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