How Does Burlington's Off-Price Model Drive Resilient Margins?

Key Takeaways Burlington's Q2 adjusted EBIT margin rose 120 bps to 6%, far exceeding guidance.Gross margin hit 43.7% as higher merchandise margin and lower freight costs offset tariffs.Reserve inventory rose to 50% of total, shielding margins from future tariff impacts.Burlington Stores, Inc. (BURL) delivered a standout margin performance in the second quarter of 2025 despite a challenging tariff environment. Adjusted EBIT margin reached 6%, expanding 120 basis points from the prior year and far exceeding g ...