Burlington Stores(BURL) - 2026 Q4 - Annual Report

Store Operations - Burlington Stores operates 1,212 stores as of January 31, 2026, with a long-term target of 2,000 stores[19] - The company opened 113 new stores in Fiscal 2025, compared to 116 in Fiscal 2024 and 91 in Fiscal 2023[20] - Total gross square footage of all stores increased to 52.8 million square feet in Fiscal 2025 from 51.8 million in Fiscal 2024[20] - The distribution centers occupy an aggregate of 5,135,000 square feet, with six centers shipping over 99% of merchandise units[21] Product Categories - Burlington's sales by major product category in Fiscal 2025 included 20% ladies apparel, 28% accessories and shoes, and 20% home[31] - The company has diversified its product offerings, but store traffic is still influenced by weather patterns[44] Customer Demographics - The core customer demographic is aged 25-49, ethnically diverse, with an annual household income of $25,000-$100,000[41] Workforce - The company employs 83,309 associates, with 79% being part-time or seasonal[35] - Burlington has a commitment to increase hourly associates' wages annually since 2010, ensuring competitive compensation[40] Marketing Strategy - Burlington's marketing strategy includes a mix of television, radio, digital, and social media to engage customers effectively[42] Market Competition - The company operates in a highly fragmented and competitive U.S. retail apparel and home furnishings market, competing on price, quality, and customer service[43] Seasonal Influences - The business is subject to seasonal influences, with higher sales and net income typically realized in the second half of the year during back-to-school and holiday seasons[44] Financial Management - As of January 31, 2026, the company had $1,730.6 million of floating-rate debt, with a potential cash interest expense increase or decrease of $6.3 million per year for a one percentage point change in interest rates[275] - On September 24, 2024, the company refinanced $933 million of term B-6 loans into term B-7 loans totaling $1,250 million, extending the maturity date to September 24, 2031, and reducing interest rate margins[269] - The company entered into a new interest rate swap agreement on September 27, 2024, with a notional amount of $500 million at a blended interest rate of 2.83%[272] - The company has unlimited interest rate risk related to borrowings on variable rate debt exceeding the notional principal amount of its interest rate swap contracts[274] - The company manages interest rate risk through interest rate derivative contracts, impacting earnings and cash flows[271] Communication and Trademarks - The company utilizes various channels, including SEC filings and social media, to communicate material information to investors[48] - The company considers its trademarks, including "Burlington" and "Burlington Coat Factory," to be valuable assets that are adequately protected[45]