Financial Data and Key Metrics Changes - Total sales increased by 11% in Q4 2025, following a 10% growth in Q4 2024, indicating strong market share gains [5][20] - Comparable store sales rose by 4%, building on a 6% increase from the previous year, resulting in a 10% two-year comp stack [5][28] - Operating margin expanded by 100 basis points in Q4, with a 21% growth in earnings per share [9][20] - For the full year 2025, total sales grew by 9% on top of an 11% increase in 2024, with comparable store sales up by 2% following a 4% rise in 2024 [10][24] Business Line Data and Key Metrics Changes - The elevation strategy has led to higher comp growth rates in premium price segments, indicating successful execution in offering better brands and higher quality [7][73] - Despite strong overall performance, certain categories like home goods and gifting were underrepresented due to tariff-related assortment gaps, which could have driven higher sales [14][35] Market Data and Key Metrics Changes - The company anticipates a favorable tax refund season, which is expected to positively impact sales, particularly in Q1 2026 [16][41] - The overall buying environment for off-price merchandise is described as excellent, with ample supply across most categories [55] Company Strategy and Development Direction - The company is optimistic about 2026, raising comp guidance to 1%-3% due to favorable external and internal factors, including easier comp comparisons and improved assortment strategies [18][19] - Continued focus on the Burlington 2.0 initiatives, including store experience remodels and merchandising capabilities, is expected to drive future growth [18][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their customer base and the potential for sales growth in 2026, despite uncertainties surrounding tariffs [16][41] - The company plans to pursue sales opportunities without compromising margins, aiming for further operating margin leverage [19][28] Other Important Information - The company ended Q4 with approximately $2.2 billion in total liquidity, including $1.2 billion in cash [23] - A total of 131 new stores were opened in 2025, with plans for 110 net new stores in 2026 [25][84] Q&A Session Summary Question: What drove your ahead of planned sales in Q4? - Management noted that comp growth was strong but could have been higher if not for tariff-related assortment gaps in key categories like home goods and gifting [34][35] Question: Can you elaborate on the 2026 comp guidance? - The company indicated that the guidance reflects a more optimistic outlook based on customer resilience and favorable tax refund expectations, while still maintaining a conservative approach to planning [39][41] Question: How are you feeling about inventory levels? - Management expressed confidence in inventory levels, noting a deliberate increase to prepare for anticipated higher traffic and sales due to tax refunds [53][54] Question: What is the pipeline for new stores and relocations? - The company is excited about its new store program, expecting to open 110 net new stores in 2026, and is also focusing on relocating and downsizing older stores to improve performance [81][84]

Financial Data and Key Metrics Changes - Total sales increased by 11% in Q4 2025, following a 10% growth in Q4 2024, indicating strong market share gains [5][21] - Comparable store sales rose by 4%, building on a 6% increase from the previous year, resulting in a two-year comp stack of 10% [5][21] - Operating margin expanded by 100 basis points in Q4, with a 21% growth in earnings per share [9][21] - For the full year 2025, total sales grew by 9% on top of 11% growth in 2024, with comp sales increasing by 2% following a 4% increase in 2024 [10][24] - Adjusted EBIT margin for Q4 was 12.1%, and adjusted EPS was $4.99, both exceeding guidance [22] Business Line Data and Key Metrics Changes - The elevation strategy focused on offering better brands and higher quality products, leading to increased comp growth in higher price buckets [7][75] - Despite strong overall performance, certain categories like home decor and gifting experienced lower comp growth due to tariff-related assortment gaps [14][34] Market Data and Key Metrics Changes - The company anticipates a favorable tax refund season, which is expected to positively impact sales, particularly in Q1 2026 [17][52] - The overall buying environment for off-price merchandise is described as excellent, with ample supply across most categories [57] Company Strategy and Development Direction - The company plans to open approximately 110 net new stores in 2026, continuing its expansion strategy [25][88] - The Burlington 2.0 initiatives aim to enhance store experience and merchandising capabilities, with a focus on localization [19][77] - The company is committed to maintaining margins while pursuing sales growth, emphasizing the importance of profitable sales [20][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing external factors like resilient customer trends and internal factors such as improved assortment opportunities [17][29] - The company plans to raise comp guidance to 1%-3% for 2026, reflecting a more bullish outlook compared to previous years [20][42] Other Important Information - The company ended Q4 with approximately $2.2 billion in total liquidity, including $1.2 billion in cash [23] - Share repurchases totaled $251 million for the year, with $385 million remaining on the authorization [23] Q&A Session Summary Question: What drove your ahead of planned sales in Q4? - Management noted that comp growth was strong but could have been higher if not for tariff-related assortment gaps in key categories like home and gifting [34][36] Question: Can you elaborate on the comp guidance for 2026? - The company raised its comp guidance to 1%-3% based on optimistic sales trends and customer resilience, while still planning conservatively [42][40] Question: How do you view the impact of tax refunds on sales? - Management indicated that while higher tax refunds could drive sales, the impact may not be as significant as previous stimulus checks [52] Question: What is the status of inventory levels? - The company is satisfied with inventory levels, which were up 12% in Q4, and believes it is well-prepared for anticipated sales growth [54][55] Question: Can you discuss the new store pipeline? - The company is excited about its new store program, expecting strong performance from new locations and emphasizing the importance of relocations and downsizing existing stores [84][88]

Financial Data and Key Metrics Changes - Total sales increased by 11% in Q4 2025, following a 10% growth in Q4 2024, indicating strong market share gains [4][18] - Comparable store sales rose by 4%, building on a 6% increase from the previous year, resulting in a 10% two-year comp stack [5][26] - For the full year 2025, total sales grew by 9% on top of 11% growth in 2024, with comp sales increasing by 2% following a 4% increase in 2024 [8][21] - Operating margin expanded by 80 basis points for the full year, with a 22% increase in earnings per share compared to a 34% increase in the previous year [8][26] Business Line Data and Key Metrics Changes - The elevation strategy has led to higher comp growth rates in premium price segments, indicating successful execution in offering better brands and higher quality products [6][71] - Despite strong overall performance, certain categories such as home goods and gifting were underrepresented due to strategic adjustments in response to tariffs, which limited potential sales growth [12][33] Market Data and Key Metrics Changes - The company anticipates a favorable tax refund season, which is expected to positively impact sales, particularly in Q1 2026 [14][50] - The overall buying environment for off-price merchandise is described as excellent, with ample supply across most categories, supporting sales growth [55] Company Strategy and Development Direction - The company is optimistic about its sales outlook for 2026, raising comp guidance to 1%-3% due to favorable external and internal factors [16][39] - Continued focus on the Burlington 2.0 initiatives, including store experience improvements and merchandising localization, is expected to drive future growth [16][74] - The company plans to open approximately 110 net new stores in 2026, alongside a strategy of relocating and downsizing existing stores to improve performance and reduce occupancy costs [23][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of customers and the potential for increased sales driven by tax refunds and improved market conditions [14][50] - The impact of tariffs is expected to be less severe in 2026, as the industry has adjusted, allowing for more aggressive sales strategies without sacrificing margins [15][40] Other Important Information - The company ended Q4 with approximately $2.2 billion in total liquidity, including $1.2 billion in cash, and has no outstanding borrowings [20] - Inventory levels were strategically increased by 12% to prepare for anticipated higher traffic and sales in Q1 2026 [19][52] Q&A Session Summary Question: What drove your ahead of planned sales in Q4? - Management noted that while Q4 comp growth was strong, certain categories like home goods could have performed better if not for tariff-related adjustments [31][33] Question: How should we interpret the 1%-3% comp guidance for 2026? - The guidance reflects a more optimistic outlook based on recent performance and external factors, allowing for more aggressive planning [37][39] Question: Will higher tax refunds impact sales similarly to stimulus checks in 2021? - Management indicated that while higher tax refunds could boost sales, the impact is expected to be less significant than the 2021 stimulus checks [50][51] Question: How are inventory levels and merchandise supply? - Management expressed confidence in inventory levels, noting a deliberate increase to support anticipated sales growth, with a strong supply of off-price merchandise available [52][55] Question: Can you elaborate on the elevation strategy and its impact? - The elevation strategy has successfully improved customer perception and sales in higher price segments without negatively impacting margins, showcasing effective merchandising [71][72]

Burlington Stores Investor Presentation March 2026 Proprietary and confidential Disclaimer Forward Looking Statements This presentation contains forward-looking statements that are based on current expectations, estimates, forecasts and projections about Burlington Stores, Inc., together with its consolidated subsidiaries including, without limitation, Burlington Coat Factory Warehouse Corporation and its operating subsidiaries ("Burlington" or the "Company"), the industry in which Burlington operates and o ...

Core Insights - Burlington Stores, Inc. (BURL) is implementing its Burlington 2.0 strategy, focusing on improved merchandising tools, planning capabilities, and supply chain efficiencies, which is already showing positive results in performance [1] Financial Performance - In Q3 of fiscal 2025, total sales increased by 7% year over year, while comparable-store sales rose by 1% [2] - Gross margin improved by 30 basis points to 44.2%, driven by a 10-basis-point increase in merchandise margin and a 20-basis-point decrease in freight expenses [2] - The adjusted EBIT margin reached 6.2%, reflecting a 60-basis-point increase from the previous year, supported by a 40-basis-point improvement in product sourcing costs and a 20-basis-point leverage in SG&A [3] Strategic Guidance - Management has raised its fiscal 2025 adjusted EBIT margin guidance to an expected expansion of 60 to 70 basis points, up from the previous estimate of 20 to 40 basis points [4] - Total sales are projected to grow nearly 8%, exceeding the earlier guidance of 7% to 8%, while comparable sales growth is expected to remain at 1% to 2% [4] - The company plans to open 104 net new stores in 2025, an increase from the previous estimate of 100, and aims for 110 net new stores in 2026 [4] Competitive Landscape - Boot Barn Holdings, Inc. reported a net sales increase of 18.7% to $505.4 million, with a gross margin improvement to 36.4% [6] - American Eagle Outfitters, Inc. achieved total revenue of $1.4 billion, up 6%, but experienced a gross margin decline of 40 basis points to 40.5% [7] Market Position - Over the past six months, BURL's shares have gained 3.1%, contrasting with a 3.2% decline in the industry [8] - BURL has a forward price-to-earnings ratio of 22.86X, which is lower than the industry average of 30.06X [10] - The Zacks Consensus Estimate indicates a year-over-year earnings rise of 17.6% for fiscal 2026 and 13.5% for fiscal 2027 [11]

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]