In Q4, Burlington delivered adjusted EPS of $4.99, up 21% year on year, alongside a 43.7% gross margin (up 80 basis points) and a 12.1% adjusted EBIT margin (up 100 basis points). For full fiscal 2025, total sales rose 9% with 2% comparable-store growth, driving 80 basis points of operating margin expansion and 22% EPS growth.

Management attributed strong profitability to proactive actions taken after April 2025 tariff hikes, including reducing receipts in high-tariff categories, lowering inventory levels to improve turns, raising prices in fast-turning items and aggressively cutting expenses, enabling margin leverage despite compression in the home assortment.

Burlington ended Q4 with $2.2 billion in liquidity, including $1.2 billion cash and $926 million undrawn on its ABL facility, while repurchasing $59 million of stock in Q4 and $251 million in 2025. Reserve inventory declined to 40% of total, comparable-store inventories rose 12%, and store count grew by 104 net to 1,212 locations.

For fiscal 2026, the company targets 8%–10% total sales growth, 1%–3% comparable-store sales gains, flat to +20 basis points in adjusted EBIT margin, EPS of $10.95–11.45, approximately $875 million in net capex and net openings of 110 stores, while Q1 margin is expected to soften due to tariff lapping and distribution center startup costs.