Burlington Stores finds itself in the spotlight following a robust second-quarter performance for fiscal 2025. While the off-price retailer posted financial results that handily surpassed Wall Street’s projections, its tempered outlook for the remainder of the year has introduced a note of caution, tempering investor enthusiasm.
Impressive Financial Performance
The company’s Q2 2025 earnings report revealed significant strength across key metrics. Adjusted earnings per share surged 39% to $1.72, dramatically exceeding the consensus analyst estimate of $1.29. Revenue climbed 10% to reach $2.71 billion, also outperforming expectations of $2.63 billion.
Comparable store sales increased by 5%, maintaining the growth trajectory established in the same quarter last year. Perhaps most notably, the company demonstrated improved profitability: its operating margin expanded by 120 basis points, while the gross margin improved by 90 basis points to 43.7%.
Management Tempers Expectations
Despite these outstanding quarterly results, Burlington’s executive team struck a surprisingly conservative tone regarding full-year 2025 performance. Although the company raised its annual EPS guidance to a range of $9.19 to $9.59, expectations for the second half point toward a noticeable slowdown.
Should investors sell immediately? Or is it worth buying Burlington Stores?
The updated forecast now anticipates comparable store sales growth of just 1% to 2%, with total revenue expected to increase by 7% to 8%. Company leadership cited macroeconomic uncertainties and potential risks associated with trade tariffs as primary reasons for this more guarded perspective.
Key Financial Highlights
- Earnings Per Share: $1.72 (versus $1.29 expected)
- Revenue Growth: +10% to $2.71 billion
- Store Count: 1,138 locations (compared to 1,057 the previous year)
- Share Repurchases: $26 million during the quarter
Market Reaction and Analyst Sentiment
The immediate market response to the earnings release was positive, with shares advancing more than 5% following the announcement. The stock currently trades at approximately 25 times expected annual earnings, positioning it in the middle range of valuation within the off-price retail sector.
Market experts remain largely optimistic in their assessments. The average price target among analysts sits around $345, with UBS expressing the most bullish outlook by suggesting $430 could be achievable. This positive sentiment is largely driven by the successful implementation of Burlington’s strategic “Burlington 2.0” initiatives, which are helping the retailer capture market share and attract growth-oriented consumers.
Ad
Burlington Stores Stock: Buy or Sell?! New Burlington Stores Analysis from December 19 delivers the answer:
The latest Burlington Stores figures speak for themselves: Urgent action needed for Burlington Stores investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 19.
Burlington Stores: Buy or sell? Read more here...
