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Burlington Stores, Inc. Reports Second Quarter 2025 Earnings

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]