Financial Data and Key Metrics Changes - Total sales grew by 10% in Q2, following a 13% growth last year, indicating strong market share gains [10] - Comparable store sales increased by 5%, consistent with the previous year's growth [10] - Operating margin expanded by 120 basis points year-over-year, driven by stronger merchandise margins and expense efficiencies [11][27] - Earnings per share (EPS) reached $1.72, exceeding guidance by $0.42 and representing a 39% increase compared to the prior year [11][27] Business Line Data and Key Metrics Changes - The company reported strong performance across various categories, with beauty, accessories, and shoes showing the strongest growth, while home performance was softer [111] - The company opened 23 net new stores, bringing the total store count to 1,138 [30] Market Data and Key Metrics Changes - Traffic remained flat in Q2, with comp sales driven by higher transaction sizes and an increase in average unit retail [25] - Reserve inventory constituted 50% of total inventory, up from 41% last year, reflecting proactive purchasing strategies to mitigate tariff impacts [28] Company Strategy and Development Direction - The company is focused on "Burlington 2.0" initiatives, which include improvements in merchandising and store experiences, aimed at enhancing customer engagement and operational efficiency [15][19] - The company plans to continue opening 100 net new stores in fiscal 2025, indicating a commitment to expansion [30] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about external risks in the second half of the year, including weather variations and macroeconomic factors such as inflation and unemployment [12][42] - Despite strong Q2 performance, management is maintaining a cautious approach and is prepared to adapt to changing market conditions [34][44] Other Important Information - The company raised $500 million in additional term loan debt to fund a new distribution center and enhance liquidity [29][84] - The company has a total liquidity of approximately $1.7 billion, consisting of cash and availability on its asset-based lending facility [30] Q&A Session Summary Question: How to interpret the back half guidance after a strong Q2 comp? - Management indicated that the conservative guidance is part of their standard playbook, allowing flexibility to chase stronger trends if they arise [39][40] Question: Can you elaborate on the impact of tariffs on guidance? - Management acknowledged incremental tariff risks but emphasized their ability to offset most of the pressure through various strategies [45][46] Question: What trends are observed among different demographic groups? - Comp performance was broad-based, with lower-income customers performing above the chain average, while Hispanic customer trends were slightly above average excluding Puerto Rico [62][66] Question: How is merchandise availability and tariff-related cost pressure being managed? - Overall merchandise availability is strong, with proactive purchasing strategies in place to mitigate tariff impacts [68][70] Question: Can you provide insights on inventory levels and composition? - Comparable store inventory was down 8%, while reserve inventory increased significantly due to strategic purchasing ahead of tariffs [77][80] Question: What improvements have been made in store standards? - Significant improvements in store standards and customer service scores have been achieved through enhanced leadership and accountability [91][93] Question: How is the back-to-school business performing? - Early back-to-school sales were strong, with a deliberate strategy to capture market share among value-conscious families [105][107]

Financial Data and Key Metrics Changes - Total sales grew by 10% compared to a 13% growth last year, indicating strong market share gains [8][22] - Comparable store sales increased by 5%, consistent with the previous year's growth [8][22] - Operating margin expanded by 120 basis points year-over-year, driven by stronger merchandise margins and expense efficiencies [9][25] - Earnings per share (EPS) reached $1.72, exceeding guidance by $0.42 and representing a 39% increase from the prior year [9][25] Business Line Data and Key Metrics Changes - The Home business faced challenges due to tariff-related supply disruptions, impacting sales trends [16][68] - Strong performance was noted in beauty, accessories, and shoes, while apparel also performed well across all categories [110] Market Data and Key Metrics Changes - Traffic remained flat, with comp sales driven by higher transaction sizes and mid-single-digit increases in average unit retail [22] - The Southeast and Northeast regions showed the strongest performance, while the Midwest was the weakest [109] Company Strategy and Development Direction - The company is focused on "Burlington 2.0" initiatives, which include improvements in merchandising and store experiences [13][19] - The strategy aims to enhance customer service and store standards, resulting in historical highs in customer service scores [18][92] - The company plans to open 100 net new stores in fiscal 2025, with a focus on leveraging younger store cohorts for comp sales growth [27][21] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the external outlook for the second half of the year, particularly concerning weather and macroeconomic factors [10][40] - Despite strong Q2 performance, management highlighted risks such as higher unemployment and inflation that could impact retail sales [39][40] - The company is prepared to chase stronger sales trends if they materialize, supported by strong merchandise supply [36][41] Other Important Information - The company raised $500 million in additional term loan debt to fund a new distribution center and enhance liquidity [26][84] - Reserve inventory increased to 50% of total inventory, reflecting proactive purchasing strategies to mitigate tariff impacts [25][80] Q&A Session Summary Question: How to interpret the back half guidance after a strong Q2? - Management indicated that the conservative guidance is part of their standard playbook, allowing flexibility to chase stronger trends if they arise [36][41] Question: Details on the impact of tariffs on fall guidance? - Management explained that while tariffs pose risks, they have identified offsetting actions to mitigate the impact on margins [42][43] Question: Trends in pricing at the industry level? - Management noted that competitors are selectively raising prices, but the overall impact on their pricing strategy remains to be seen [47][51] Question: Insights on demographic performance? - Management reported strong performance among lower-income customers and Hispanic customers, with no current issues despite economic headwinds [61][64] Question: Concerns about merchandise availability and tariff-related cost pressure? - Management confirmed strong merchandise availability and emphasized proactive strategies to manage tariff-related costs [66][70] Question: Commentary on inventory levels and composition? - Management highlighted a deliberate strategy to manage comp store inventory tightly while increasing reserve inventory to capitalize on market opportunities [78][80] Question: Changes to the debt structure and interest expense outlook? - Management discussed recent capital structure changes, including raising term loan debt and extending the ABL facility, with no anticipated changes in the near term [84][86] Question: Improvements in store standards and conditions? - Management described significant improvements in store standards and customer service, leading to higher engagement and satisfaction [92][96] Question: Back to school trends observed? - Management reported strong early back-to-school sales, with a solid trend continuing into August [105][107] Question: Update on the Elevation strategy and younger consumer trends? - Management expressed satisfaction with the Elevation strategy's success and noted strong engagement with younger consumers, emphasizing value as a key driver [114][119]

Financial Data and Key Metrics Changes - Total sales grew 10% in Q2, following a 13% growth last year, indicating strong market share gains [8][22] - Comparable store sales increased by 5%, consistent with the previous year's growth [8][22] - Operating margin expanded by 120 basis points year-over-year, driven by stronger merchandise margins and expense efficiencies [9][25] - Earnings per share (EPS) reached $1.72, exceeding guidance by $0.42 and representing a 39% increase from the prior year [9][25] Business Line Data and Key Metrics Changes - The Home business faced challenges due to tariff-related inventory disruptions, but overall comp growth of 5% was achieved across stores [16][68] - Merchandise margin improved by 60 basis points, driven by lower markdowns and improved shortage management [24][54] - Adjusted SG&A costs decreased by 30 basis points, reflecting savings initiatives and leverage from higher comp sales [25][54] Market Data and Key Metrics Changes - Traffic remained flat in Q2, with comp sales driven by higher transaction sizes and mid-single-digit increases in average unit retail [22][23] - Regional performance showed the Southeast and Northeast as the strongest areas, while the Midwest lagged behind [110] Company Strategy and Development Direction - The company is focused on "Burlington 2.0" initiatives, which include improvements in merchandising and store experiences to enhance customer engagement and operational efficiency [13][19] - The strategy includes elevating the assortment with better quality and recognizable brands, aiming to attract younger consumers and families [116][120] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the external outlook for the second half of the year, citing potential risks from weather, macroeconomic factors, and tariffs [10][40] - Despite strong Q2 performance, the company is maintaining conservative guidance for Q3 and Q4, expecting comp sales growth of 0% to 2% [10][30] Other Important Information - The company raised $500 million in additional term loan debt to fund a new distribution center and enhance liquidity [26][82] - Reserve inventory increased to 50% of total inventory, reflecting proactive purchasing strategies to mitigate tariff impacts [25][79] Q&A Session Summary Question: How to interpret the back half guidance given the strong Q2 comp? - Management indicated that the conservative guidance is part of their standard playbook, allowing flexibility to chase stronger trends if they arise [36][41] Question: Can you elaborate on the impact of tariffs on the updated guidance? - Management acknowledged incremental tariff risks but emphasized their ability to offset most of the pressure through various strategies [42][44] Question: What trends are observed among different demographic groups? - Comp performance was broad-based, with lower-income customers performing above the chain average, while Hispanic customer trends were slightly above average excluding Puerto Rico [61][64] Question: How is merchandise availability and tariff-related cost pressure being managed? - Overall merchandise availability is strong, with proactive purchasing strategies in place to mitigate tariff impacts [66][70] Question: Can you provide insights on inventory levels and composition? - Comp store inventory was down 8%, while reserve inventory increased significantly due to strategic pre-tariff purchases [76][79] Question: What improvements have been made in store standards? - Significant improvements in customer service scores and operational metrics have been achieved through enhanced leadership and accountability [91][93] Question: How is the back-to-school business performing? - Early back-to-school sales were strong, with a deliberate strategy to capture market share among value-conscious families [105][107]

[Executive Summary & Business Highlights](index=1&type=section&id=1.%20Executive%20Summary%20%26%20Business%20Highlights) Burlington Stores delivered strong Q2 FY2025 results, driven by effective strategies, leading to increased sales, improved margins, and raised full-year earnings guidance [CEO Commentary](index=1&type=section&id=1.1%20CEO%20Commentary) CEO Michael O'Sullivan expressed satisfaction with Q2 FY2025 performance, highlighting strong comparable store sales growth, margin expansion, and earnings beat, attributing success to "Burlington 2.0 strategies" and raising full-year earnings guidance while maintaining sales guidance for Q3/Q4 - Exceptional performance in the second quarter, with comparable store sales increasing **5%** on top of **5%** last year[3](index=3&type=chunk) - Adjusted EBIT Margin increased **120 basis points**, while Adjusted EPS grew **39%** versus the second quarter of last year[3](index=3&type=chunk) - Raising full year earnings guidance due to Q2 strength, while maintaining **0% to 2%** comp growth guidance for Q3 and Q4[3](index=3&type=chunk) - Strong Q2 results linked to early stages of Burlington 2.0 strategies, expected to drive longer-term performance[3](index=3&type=chunk) [Second Quarter Fiscal 2025 Highlights](index=1&type=section&id=1.2%20Second%20Quarter%20Fiscal%202025%20Highlights) Burlington Stores reported robust Q2 FY2025 results, with total sales up 10% and comparable store sales up 5%, net income reaching $94 million, and Adjusted EPS increasing 39% to $1.72, leading to raised full-year Adjusted EPS guidance Q2 FY2025 Key Financial Highlights | Metric | Q2 FY2025 | Q2 FY2024 | Change (YoY) | | :----- | :-------- | :-------- | :----------- | | Total Sales | $2,701 million | $2,461 million | +10% | | Comparable Store Sales | +5% | +5% | Flat | | Net Income | $94 million | $74 million | +27% | | Diluted EPS | $1.47 | $1.15 | +27.8% | | Adjusted EBIT Margin | +120 bps | N/A | +120 bps | | Adjusted EPS | $1.72 | $1.24 | +38.7% | - Full year adjusted EPS guidance increased to **$9.19 to $9.59**[6](index=6&type=chunk) [Financial Performance Analysis](index=1&type=section&id=2.%20Financial%20Performance%20Analysis) This section details Burlington Stores' robust Q2 and first six months of FY2025, showcasing significant growth in sales, profitability, and earnings per share [Second Quarter Fiscal 2025 Operating Results](index=1&type=section&id=2.1%20Second%20Quarter%20Fiscal%202025%20Operating%20Results) Detailed Q2 FY2025 operating results show strong sales growth, improved gross margin driven by merchandise margin expansion and lower freight expense, and significant increases in adjusted profitability metrics [Sales and Gross Margin](index=1&type=section&id=2.1.1%20Sales%20and%20Gross%20Margin) Total sales increased 10% to $2,701 million, with comparable store sales up 5%, and gross margin rate improved by 90 basis points to 43.7%, primarily due to a 60 basis point expansion in merchandise margin and a 30 basis point improvement in freight expense Q2 FY2025 Sales and Gross Margin Performance | Metric | Q2 FY2025 | Q2 FY2024 | Change (YoY) | | :----- | :-------- | :-------- | :----------- | | Total Sales | $2,701 million | $2,461 million | +10% | | Comparable Store Sales | +5% | +5% | Flat | | Gross Margin Rate | 43.7% | 42.8% | +90 bps | | Merchandise Margin | N/A | N/A | +60 bps | | Freight Expense (as % of net sales) | N/A | N/A | -30 bps | [Operating Expenses and Profitability](index=2&type=section&id=2.1.2%20Operating%20Expenses%20and%20Profitability) SG&A as a percentage of net sales slightly increased by 10 basis points to 35.2%, but Adjusted SG&A improved by 30 basis points to 26.7%, while Adjusted EBIT and Adjusted EBITDA both saw significant increases, with Adjusted EBIT margin improving by 120 basis points Q2 FY2025 Operating Expenses and Profitability | Metric | Q2 FY2025 | Q2 FY2024 | Change (YoY) | | :----- | :-------- | :-------- | :----------- | | Product Sourcing Costs | $209 million | $191 million | +9.4% | | SG&A (% of net sales) | 35.2% | 35.1% | +10 bps | | Adjusted SG&A (% of net sales) | 26.7% | 27.0% | -30 bps | | Adjusted EBIT | $162 million | $118 million | +37.3% | | Adjusted EBIT (% of sales) | N/A | N/A | +120 bps | | Adjusted EBITDA | $257 million | $205 million | +25.4% | | Adjusted EBITDA (% of sales) | N/A | N/A | +120 bps | [Net Income and Earnings Per Share](index=1&type=section&id=2.1.3%20Net%20Income%20and%20Earnings%20Per%20Share) Net income for Q2 FY2025 was $94 million, or $1.47 per diluted share, up from $74 million and $1.15 per share in the prior year, with Adjusted Net Income increasing to $110 million, or $1.72 per share, reflecting a 39% growth in Adjusted EPS Q2 FY2025 Net Income and EPS | Metric | Q2 FY2025 | Q2 FY2024 | Change (YoY) | | :----- | :-------- | :-------- | :----------- | | Net Income | $94 million | $74 million | +27.0% | | Diluted EPS | $1.47 | $1.15 | +27.8% | | Adjusted Net Income | $110 million | $80 million | +37.5% | | Adjusted EPS | $1.72 | $1.24 | +38.7% | | Diluted Weighted Average Shares Outstanding | 63.9 million | 64.3 million | -0.6% | | Effective Tax Rate | 26.0% | 26.0% | Flat | [First Six Months Fiscal 2025 Results](index=2&type=section&id=2.2%20First%20Six%20Months%20Fiscal%202025%20Results) For the first six months of Fiscal 2025, total sales increased 8%, net income grew 28% to $195 million, or $3.05 per share, Adjusted EBIT increased by 80 basis points as a percentage of sales, and Adjusted Net Income rose to $217 million, or $3.39 per share First Six Months FY2025 Key Financials | Metric | 6 Months FY2025 | 6 Months FY2024 | Change (YoY) | | :----- | :-------------- | :-------------- | :----------- | | Total Sales | N/A | N/A | +8% | | Net Income | $195 million | $152 million | +28.3% | | Diluted EPS | $3.05 | $2.37 | +28.7% | | Adjusted EBIT | $314 million | $254 million | +23.6% | | Adjusted EBIT (% of sales) | N/A | N/A | +80 bps | | Adjusted Net Income | $217 million | $171 million | +27.0% | | Adjusted EPS | $3.39 | $2.66 | +27.4% | [Financial Position and Capital Management](index=2&type=section&id=3.%20Financial%20Position%20and%20Capital%20Management) Burlington Stores maintains a strong financial position with healthy liquidity, managed inventory levels, and active share repurchase programs [Inventory](index=2&type=section&id=3.1%20Inventory) Merchandise inventories increased 16% year-over-year to $1,415 million at the end of Q2 FY2025, though comparable store inventories decreased by 8%, with reserve inventory, largely opportunistic purchases, growing to 50% of total inventory from 41% last year Inventory Overview | Metric | End of Q2 FY2025 | End of Q2 FY2024 | Change (YoY) | | :----- | :--------------- | :--------------- | :----------- | | Merchandise Inventories | $1,415 million | $1,223 million | +16% | | Comparable Store Inventories | N/A | N/A | -8% | | Reserve Inventory (% of total) | 50% | 41% | +9 percentage points | [Liquidity and Debt](index=2&type=section&id=3.2%20Liquidity%20and%20Debt) Burlington Stores maintained strong liquidity at the end of Q2 FY2025, with $1,694 million, comprising $748 million in cash and $946 million in ABL facility availability, while total outstanding debt was $2,039 million, including Term Loan and Convertible Notes, with no ABL borrowings Liquidity and Debt Position (End of Q2 FY2025) | Metric | End of Q2 FY2025 | | :----- | :---------------- | | Total Liquidity | $1,694 million | | Unrestricted Cash | $748 million | | ABL Facility Availability | $946 million | | Total Outstanding Debt | $2,039 million | | Term Loan Facility | $1,727 million | | Convertible Notes | $297 million | | ABL Facility Borrowings | $0 | [Common Stock Repurchases](index=3&type=section&id=3.3%20Common%20Stock%20Repurchases) During Q2 FY2025, the company repurchased 102,474 shares of common stock for $26 million, with $632 million remaining authorized under its share repurchase program as of the quarter-end Common Stock Repurchases (Q2 FY2025) | Metric | Q2 FY2025 | | :----- | :--------- | | Shares Repurchased | 102,474 | | Value of Repurchases | $26 million | | Remaining Authorization | $632 million | [Outlook](index=3&type=section&id=4.%20Outlook) Burlington Stores provides its financial projections for Fiscal Year 2025 and the third quarter, anticipating continued sales growth and improved profitability [Fiscal Year 2025 Guidance](index=3&type=section&id=4.1%20Fiscal%20Year%202025%20Guidance) For FY2025, Burlington Stores projects total sales growth of 7% to 8%, with comparable store sales increasing 1% to 2%, plans to open approximately 100 net new stores, and expects Adjusted EPS in the range of $9.19 to $9.59, an increase from the prior year Fiscal Year 2025 Guidance | Metric | FY2025 Guidance | FY2024 Actual | | :----- | :-------------- | :------------ | | Total Sales Growth | 7% to 8% | +11% | | Comparable Store Sales Growth | 1% to 2% | +4% | | Capital Expenditures (net of landlord allowances) | ~$950 million | N/A | | Net New Stores | ~100 | N/A | | Depreciation and Amortization | ~$385 million | N/A | | Adjusted EBIT Margin Increase | 20 to 40 bps | N/A | | Net Interest Expense | ~$50 million | N/A | | Adjusted Effective Tax Rate | ~25% | N/A | | Adjusted EPS | $9.19 to $9.59 | $8.35 | | Fully Diluted Share Count | ~64 million | N/A | [Third Quarter Fiscal 2025 Guidance](index=3&type=section&id=4.2%20Third%20Quarter%20Fiscal%202025%20Guidance) For Q3 FY2025, the company anticipates total sales growth of 5% to 7%, with comparable store sales increasing 0% to 2%, Adjusted EBIT margin expected to range from down 20 basis points to flat, and Adjusted EPS projected between $1.50 and $1.60 Third Quarter Fiscal 2025 Guidance | Metric | Q3 FY2025 Guidance | Q3 FY2024 Actual | | :----- | :----------------- | :--------------- | | Total Sales Growth | 5% to 7% | N/A | | Comparable Store Sales Growth | 0% to 2% | N/A | | Adjusted EBIT Margin | Down 20 bps to Flat | N/A | | Effective Tax Rate | ~25% | N/A | | Adjusted EPS | $1.50 to $1.60 | $1.55 | [Non-GAAP Financial Measures](index=4&type=section&id=5.%20Non-GAAP%20Financial%20Measures) This section clarifies the use and provides detailed reconciliations of non-GAAP financial measures to GAAP equivalents for enhanced transparency and performance evaluation [Note Regarding Non-GAAP Financial Measures](index=4&type=section&id=5.1%20Note%20Regarding%20Non-GAAP%20Financial%20Measures) Burlington Stores uses non-GAAP financial measures such as Adjusted SG&A, Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Adjusted EBIT, and Adjusted Effective Tax Rate to provide greater transparency and assist investors and management in evaluating core operating performance by excluding items that vary substantially in frequency and magnitude - Non-GAAP measures are used to evaluate business performance and provide transparency by excluding items that vary substantially from core operating results[18](index=18&type=chunk)[37](index=37&type=chunk) - These measures help compare core operating results between past and future periods and assess the ability to generate earnings and leverage sales[37](index=37&type=chunk) - Definitions for Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, Adjusted EBIT, Adjusted EBIT Margin, Adjusted SG&A, and Adjusted Effective Tax Rate are provided[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=9&type=section&id=5.2%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of GAAP financial measures to their non-GAAP counterparts, including Adjusted Net Income, Adjusted EPS, Adjusted EBIT, Adjusted EBITDA, Adjusted SG&A, and Adjusted Effective Tax Rate, for both the three and six months ended August 2, 2025, and August 3, 2024 [Adjusted Net Income and Adjusted EPS Reconciliation](index=10&type=section&id=5.2.1%20Adjusted%20Net%20Income%20and%20Adjusted%20EPS%20Reconciliation) Reconciliation shows adjustments for net favorable lease costs, costs related to debt amendments, impairment charges, and litigation matters, with their respective tax effects, to arrive at Adjusted Net Income and Adjusted EPS Adjusted Net Income and Adjusted EPS Reconciliation (in thousands, except per share data) | Metric | Q2 FY2025 | Q2 FY2024 | 6 Months FY2025 | 6 Months FY2024 | | :----- | :-------- | :-------- | :-------------- | :-------------- | | Net Income (GAAP) | $94,185 | $73,760 | $195,018 | $152,274 | | Adjustments (pre-tax) | | | | | | Net favorable lease costs | 1,932 | 3,138 | 4,070 | 6,108 | | Costs related to debt amendments | — | — | 112 | — | | Impairment charges | 1,580 | — | 2,095 | 8,210 | | Litigation matters | 6,750 | 1,925 | 6,334 | 1,925 | | Tax effect | (2,690) | (1,336) | (3,290) | (4,217) | | Adjusted Net Income | $101,757 | $77,487 | $204,339 | $164,300 | | Diluted WA Shares | 63,893 | 64,328 | 63,966 | 64,284 | | Adjusted EPS | $1.59 | $1.20 | $3.19 | $2.56 | [Adjusted EBIT and Adjusted EBITDA Reconciliation](index=10&type=section&id=5.2.2%20Adjusted%20EBIT%20and%20Adjusted%20EBITDA%20Reconciliation) Reconciliation details the adjustments from net income to Adjusted EBIT and Adjusted EBITDA, including interest expense/income, net favorable lease costs, debt amendment costs, impairment charges, litigation matters, and income tax expense Adjusted EBIT and Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 FY2025 | Q2 FY2024 | 6 Months FY2025 | 6 Months FY2024 | | :----- | :-------- | :-------- | :-------------- | :-------------- | | Net Income (GAAP) | $94,185 | $73,760 | $195,018 | $152,274 | | Interest expense | 17,427 | 16,582 | 33,237 | 33,231 | | Interest income | (4,124) | (6,128) | (8,835) | (14,200) | | Net favorable lease costs | 1,932 | 3,138 | 4,070 | 6,108 | | Costs related to debt amendments | — | — | 112 | — | | Impairment charges | 1,580 | — | 2,095 | 8,210 | | Litigation matters | 6,750 | 1,925 | 6,334 | 1,925 | | Income tax expense | 33,139 | 25,907 | 65,178 | 57,032 | | Adjusted EBIT | $150,889 | $115,184 | $297,209 | $244,580 | | Depreciation and amortization | 94,810 | 86,659 | 186,593 | 168,624 | | Adjusted EBITDA | $245,699 | $201,843 | $483,802 | $413,204 | [Adjusted SG&A Reconciliation](index=10&type=section&id=5.2.3%20Adjusted%20SG%26A%20Reconciliation) SG&A is reconciled to Adjusted SG&A by subtracting net favorable lease costs, product sourcing costs, and litigation matters Adjusted SG&A Reconciliation (in thousands) | Metric | Q2 FY2025 | Q2 FY2024 | 6 Months FY2025 | 6 Months FY2024 | | :----- | :-------- | :-------- | :-------------- | :-------------- | | SG&A (GAAP) | $949,931 | $863,981 | $1,817,989 | $1,689,207 | | Net favorable lease costs | (1,932) | (3,138) | (4,070) | (6,108) | | Product sourcing costs | (208,982) | (191,069) | (405,798) | (374,215) | | Litigation matters | (6,750) | (1,925) | (6,334) | (1,925) | | Adjusted SG&A | $732,267 | $667,849 | $1,401,787 | $1,306,959 | [Adjusted Effective Tax Rate Reconciliation](index=11&type=section&id=5.2.4%20Adjusted%20Effective%20Tax%20Rate%20Reconciliation) The GAAP effective tax rate is adjusted for items excluded from Adjusted Net Income to derive the Adjusted Effective Tax Rate Adjusted Effective Tax Rate Reconciliation | Metric | Q2 FY2025 | Q2 FY2024 | 6 Months FY2025 | 6 Months FY2024 | | :----- | :-------- | :-------- | :-------------- | :-------------- | | Effective tax rate (GAAP) | 26.0% | 26.0% | 25.0% | 27.2% | | Adjustments | — | — | 0.1% | — | | Adjusted Effective Tax Rate | 26.0% | 26.0% | 25.1% | 27.2% | [Consolidated Financial Statements](index=6&type=section&id=6.%20Consolidated%20Financial%20Statements) This section presents the company's unaudited condensed consolidated statements of income, balance sheets, and cash flows for the specified periods [Condensed Consolidated Statements of Income](index=6&type=section&id=6.1%20Condensed%20Consolidated%20Statements%20of%20Income) The Condensed Consolidated Statements of Income provide a detailed breakdown of revenues, costs, and expenses, leading to net income for the three and six months ended August 2, 2025, and August 3, 2024 Condensed Consolidated Statements of Income (Unaudited, in thousands) | Metric (in thousands) | 3 Months Ended Aug 2, 2025 | 3 Months Ended Aug 3, 2024 | 6 Months Ended Aug 2, 2025 | 6 Months Ended Aug 3, 2024 | | :-------------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Net sales | $2,701,026 | $2,461,193 | $5,201,101 | $4,818,510 | | Total revenue | $2,705,071 | $2,465,517 | $5,209,092 | $4,827,070 | | Cost of sales | $1,519,629 | $1,408,120 | $2,924,720 | $2,738,846 | | SG&A expenses | $949,931 | $863,981 | $1,817,989 | $1,689,207 | | Depreciation and amortization | $94,810 | $86,659 | $186,593 | $168,624 | | Interest expense | $17,427 | $16,582 | $33,237 | $33,231 | | Income before income tax expense | $127,324 | $99,667 | $260,196 | $209,306 | | Income tax expense | $33,139 | $25,907 | $65,178 | $57,032 | | Net income | $94,185 | $73,760 | $195,018 | $152,274 | | Diluted net income per common share | $1.47 | $1.15 | $3.05 | $2.37 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=6.2%20Condensed%20Consolidated%20Balance%20Sheets) The Condensed Consolidated Balance Sheets present the company's financial position as of August 2, 2025, February 1, 2025, and August 3, 2024, detailing assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (Unaudited, in thousands) | Metric (in thousands) | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :-------------------- | :------------- | :--------------- | :------------- | | Cash and cash equivalents | $747,619 | $994,698 | $659,910 | | Merchandise inventories | $1,414,814 | $1,250,775 | $1,222,714 | | Total current assets | $2,574,046 | $2,628,803 | $2,257,924 | | Total assets | $9,309,263 | $8,770,413 | $7,821,436 | | Accounts payable | $1,024,320 | $1,038,148 | $1,017,449 | | Total current liabilities | $2,093,794 | $2,272,511 | $2,178,655 | | Long term debt | $2,019,409 | $1,539,918 | $1,234,521 | | Total liabilities and stockholders' equity | $9,309,263 | $8,770,413 | $7,821,436 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=6.3%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The Condensed Consolidated Statements of Cash Flows illustrate the cash generated and used in operating, investing, and financing activities for the six months ended August 2, 2025, and August 3, 2024 Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands) | Metric (in thousands) | 6 Months Ended Aug 2, 2025 | 6 Months Ended Aug 3, 2024 | | :-------------------- | :------------------------- | :------------------------- | | Net cash provided by operating activities | $150,532 | $209,806 | | Net cash used in investing activities | $(581,414) | $(362,272) | | Net cash provided by (used in) financing activities | $183,803 | $(112,983) | | Decrease in cash and cash equivalents | $(247,079) | $(265,449) | | Cash and cash equivalents at end of period | $747,619 | $659,910 | [Company Information & Disclosures](index=4&type=section&id=7.%20Company%20Information%20%26%20Disclosures) This section provides essential company background, details on the Q2 conference call, investor contacts, and important safe harbor statements regarding forward-looking information [About Burlington Stores, Inc.](index=4&type=section&id=7.1%20About%20Burlington%20Stores%2C%20Inc.) Burlington Stores, Inc. is a nationally recognized off-price retailer headquartered in New Jersey, operating 1,138 stores across 46 states, Washington D.C., and Puerto Rico, offering high-quality branded merchandise at significant discounts, with Fiscal 2024 net sales of $10.6 billion - Nationally recognized off-price retailer of high-quality, branded merchandise at up to **60% off** other retailers' prices[2](index=2&type=chunk)[21](index=21&type=chunk) - Operated **1,138 stores** as of end of Q2 FY2025 in **46 states**, Washington D.C. and Puerto Rico[21](index=21&type=chunk) - Fiscal 2024 net sales of **$10.6 billion**; Fortune 500 company listed on NYSE (BURL)[21](index=21&type=chunk) [Second Quarter 2025 Conference Call](index=4&type=section&id=7.2%20Second%20Quarter%202025%20Conference%20Call) Burlington Stores held a conference call on August 28, 2025, to discuss its second-quarter results, with details for live participation and replay access provided - Conference call held on **August 28, 2025**, at **8:30 a.m. ET** to discuss Q2 results[19](index=19&type=chunk) - Live webcast available on www.burlingtoninvestors.com; replay available until **September 4, 2025**[19](index=19&type=chunk)[20](index=20&type=chunk) [Investor Relations Contacts](index=4&type=section&id=7.3%20Investor%20Relations%20Contacts) Contact information for investor relations inquiries is provided, including names, phone numbers, and email addresses - Investor Relations contacts: David J. Glick, Daniel Delrosario (**855-973-8445**, Info@BurlingtonInvestors.com) and Allison Malkin of ICR, Inc. (**203-682-8225**)[23](index=23&type=chunk) [Safe Harbor for Forward-Looking and Cautionary Statements](index=5&type=section&id=7.4%20Safe%20Harbor%20for%20Forward-Looking%20and%20Cautionary%20Statements) This section outlines the company's forward-looking statements, emphasizing that they are subject to risks and uncertainties that could cause actual results to differ materially, and states that the company does not undertake to publicly update these statements, except as required by law - Release contains forward-looking statements regarding financial condition, results, plans, and future performance[24](index=24&type=chunk) - Statements are subject to risks and uncertainties that may cause actual events or results to differ materially[24](index=24&type=chunk) - Company does not undertake to publicly update or revise forward-looking statements, except as required by law[24](index=24&type=chunk) - Factors causing differences include general economic conditions, competitive factors, seasonal fluctuations, supply chain disruptions, and regulatory changes[24](index=24&type=chunk)

Core Insights - Burlington Stores, Inc. reported strong second-quarter results with a 10% increase in total sales and a 5% increase in comparable store sales compared to the same period last year [4][5] - The company achieved a net income of $94 million, translating to diluted earnings per share (EPS) of $1.47, which is an increase from $74 million or $1.15 per share in the same quarter last year [4][24] - Adjusted EPS grew by 39% to $1.72, driven by higher merchandise margins and lower freight expenses [2][4] Financial Performance - Total sales reached $2,701 million, up from $2,461 million in the second quarter of Fiscal 2024, marking a 10% increase [4][24] - Adjusted EBIT margin increased by 120 basis points, reflecting strong operational efficiency [4][6] - The gross margin rate improved to 43.7% from 42.8% year-over-year, with merchandise margin expanding by 60 basis points [5][6] Guidance and Outlook - The company raised its full-year adjusted EPS guidance to a range of $9.19 to $9.59, excluding anticipated expenses related to bankruptcy acquired leases [4][12] - For the third quarter, Burlington expects comparable store sales growth of 0% to 2% and total sales growth of 5% to 7% [12][21] - The company plans to open approximately 100 net new stores and anticipates capital expenditures of about $950 million [12][21] Inventory and Liquidity - Merchandise inventories increased by 16% to $1,415 million compared to the same quarter last year, while comparable store inventories decreased by 8% [8] - The company ended the quarter with $1,694 million in liquidity, including $748 million in unrestricted cash [11][12] Share Repurchase Program - During the second quarter, Burlington repurchased 102,474 shares for $26 million, with $632 million remaining under its share repurchase program [9][11]

Company Overview - Burlington Stores (NYSE: BURL) is an off-price department store retailer, smaller than competitors like TJX or Ross, but is in a phase of expansion [3] - The company has a current market capitalization of $18 billion and reported revenue of $11 billion over the past twelve months, with operational profits of $730 million and net income of $526 million [3] Earnings Expectations - Burlington Stores is set to announce its fiscal second-quarter earnings on August 28, 2025, with analysts expecting earnings of $1.29 per share on $2.63 billion in revenue, indicating an 11% year-over-year increase in earnings and a 6% rise in sales [2] - For Q1 FY2025, Burlington reported sales of $2.5 billion, a 6% increase year-over-year, with an EPS of $1.67, exceeding estimates [3] - The company anticipates Q2 sales growth of 5-7% and an EPS of $1.20-$1.30, reaffirming full-year EPS guidance of $8.70-$9.30 and sales growth of 6-8% [3] Historical Performance - Historically, BURL stock has dropped 55% of the time following earnings announcements, with a median one-day decline of 3.8% and a maximum recorded drop of 13% [2] - Over the past five years, positive one-day returns post-earnings occurred approximately 45% of the time, with a median of 8.7% for positive returns and -3.8% for negative returns [4] Trading Strategies - For event-driven traders, understanding historical trends may provide an advantage in positioning prior to earnings or reacting to movements post-release [3] - A strategy to assess the correlation between short-term and medium-term returns post-earnings can be employed, particularly if 1D and 5D returns show high correlation [5]

Core Viewpoint - Analysts project Burlington Stores (BURL) will report quarterly earnings of $1.27 per share, a 5.8% increase year over year, with revenues expected to reach $2.64 billion, reflecting a 7% increase from the same quarter last year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted downward by 1.4%, indicating a reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock price performance [3]. Key Metrics Forecast - Analysts estimate 'Revenues- Net Sales' at $2.62 billion, a 6.6% increase from the prior-year quarter [5]. - 'Revenues- Other revenue' is projected to reach $4.23 million, indicating a year-over-year decline of 2.1% [5]. - The average prediction for 'Comparable Store Sales' is 2.1%, down from 5.0% a year ago [5]. - Analysts expect 'Stores at period end' to total 1,132, compared to 1,057 a year ago [6]. Stock Performance - Over the past month, Burlington Stores shares have returned +0.5%, while the Zacks S&P 500 composite has changed by +2.7% [6]. - Based on its Zacks Rank 3 (Hold), Burlington Stores is expected to perform in line with the overall market in the upcoming period [6].

Core Viewpoint - Burlington Stores, Inc. has announced the appointment of Michael Skirvin to its Board of Directors and Audit Committee, effective November 18, 2025, which is expected to enhance the company's strategic growth oversight [1][2]. Company Overview - Burlington Stores, Inc. is a nationally recognized off-price retailer, specializing in high-quality branded apparel, footwear, accessories, and home merchandise, with Fiscal 2024 net sales of $10.6 billion [4]. - The company operates 1,115 stores across 46 states, Washington D.C., and Puerto Rico, offering discounts of up to 60% off other retailers' prices [4]. Leadership Insights - John Mahoney, Chairman of the Board, emphasized that Skirvin's extensive experience will strengthen the Board's qualifications and oversight capabilities [2]. - Michael O'Sullivan, CEO, expressed excitement about Skirvin's addition, highlighting his 30 years of experience in the off-price retail sector as beneficial for the company's Burlington 2.0 strategy [2]. Michael Skirvin's Background - Michael Skirvin served as CEO of Bob's Discount Furniture from 2016 to 2020 and held various roles at The TJX Companies from 1989 to 2010, including Senior Vice President and Chief Operating Officer [3].

Core Insights - The Retail-Wholesale sector is expected to show growth in sales and earnings, influenced by consumer sentiment and spending trends [1][2] - Anticipated top-line growth of 5.6% year-over-year and bottom-line growth of 12.6% for the second quarter of 2025 [2] Company Performance - Walmart Inc. (WMT) is positioned for stability and growth with a Zacks Rank of 2 and an Earnings ESP of +1.26%, expecting a 9% increase in earnings per share [9][11] - Abercrombie & Fitch Co. (ANF) has a Zacks Rank of 3 and an Earnings ESP of +2.62%, with a consensus estimate suggesting a 9.2% decrease in earnings per share [12][13] - Urban Outfitters, Inc. (URBN) holds a Zacks Rank of 3 and an Earnings ESP of +3.60%, with a consensus estimate indicating a 16.1% increase in earnings per share [14][15] - Burlington Stores, Inc. (BURL) has a Zacks Rank of 3 and an Earnings ESP of +6.06%, with a consensus estimate suggesting a 5.8% increase in earnings per share [16][17] Market Trends - Retail earnings are influenced by consumer preferences shifting towards essentials and value-oriented products due to inflation [4] - Retailers focusing on competitive pricing and product diversification are likely to see improved foot traffic and conversion rates [4] - E-commerce growth and omnichannel capabilities are critical for retail success, with companies enhancing online shopping experiences [6] - Efficient inventory management is essential for profitability, with advanced analytics aiding in stock optimization [7]

Core Viewpoint - Burlington Stores, Inc. is set to release its second quarter fiscal year 2025 results on August 28, 2025, before the U.S. stock market opens, followed by a conference call to discuss the results at 8:30 a.m. Eastern Time [1] Company Overview - Burlington Stores, Inc. is a nationally recognized off-price retailer headquartered in New Jersey, with fiscal 2024 net sales of $10.6 billion [6] - The company operates 1,115 stores across 46 states, Washington D.C., and Puerto Rico, offering high-quality branded merchandise at discounts of up to 60% compared to other retailers [6] Conference Call Details - The U.S. toll-free dial-in for the conference call is 1-800-715-9871 with a passcode of 6135700, and the international dial-in number is 1-646-307-1963 [2] - A live webcast of the conference call will be available on the investor relations page of the company's website [2] Replay Information - For those unable to participate in the live conference call, a replay will be available starting at 11:30 a.m. ET on August 28, 2025, through September 4, 2025, at 11:59 p.m. ET [3] - The U.S. toll-free replay dial-in number is 1-800-770-2030, and the international replay dial-in number is 1-609-800-9909, with the same passcode of 6135700 [3] Communication Channels - Burlington Stores announces material information through SEC filings, press releases, public conference calls, and webcasts, and may also utilize its website and social media for important communications [4] - The company encourages stakeholders to review information posted on its website and social media channels, including Facebook and X (formerly Twitter) [4][5]