Burlington Reports 6% Q1 Comps, Plans 135 New Stores, Guides 19–28% EPS Growth
BURL•Burlington posted Q1 comp sales growth of 6%, opened 40 new stores (net +30), and has driven a 55% sales productivity increase over six years through relocations and downsizes. For Q2, management forecasts 30–60 basis points of operating margin expansion on 1–3% comps, translating to 19–28% EPS growth.
1. Q1 Performance Highlights
Burlington delivered 6% same-store sales growth in Q1, opened 40 new locations for a net increase of 30 stores, and achieved a 55% boost in sales productivity over six years through store relocations and downsizes.
2. Q2 Guidance and Margin Drivers
For Q2, management projects 1–3% comps, 30–60 basis points of operating margin expansion, and 19–28% EPS growth, driven by favorable markdowns, faster inventory turns and supply chain productivity initiatives.
3. Store Expansion and Productivity Gains
The company plans to open 135 gross new stores this year, builds on sales per square foot rising from $220 in 2019 to $350, and leverages relocations and downsizing to improve occupancy costs.
4. Operational Challenges and Outlook
Uncertainty around timing and amount of tariff refunds remains unaccounted for in guidance, and Burlington trails off-price peers in assortment localization and supply chain automation, though management remains bullish on second-half momentum.
