Burlington Stores achieved 4% comparable sales growth in Q4, building on 6% last year, by reallocating inventory toward apparel and footwear categories less affected by tariffs. Management noted that pursuing additional sales in home decor and toys would have hurt margins but sees potential to target these segments profitably in 2026.

The company raised its 2026 comparable sales outlook to a 1–3% increase, calling itself bullish due to resilient consumer trends, stronger tax refunds, easier year-ago comparisons and favorable inventory positions. This modest guidance shift gives merchants flexibility to chase emerging sales opportunities throughout the year.

Gross margin for Q1 is expected to drop by 60–100 basis points as tariff anniversaries expire, markdown timing shifts and start-up costs from a new Savannah distribution center weigh on supply-chain leverage. Management anticipates margin expansion in Q2 through Q4 to offset the first-quarter headwinds.

Burlington Stores plans to open 110 net new locations in 2026 while relocating and downsizing older sites to drive sales lifts and reduce occupancy expenses. Early results from the new-store program have shown strong performance and comp growth, supporting the broader store transformation strategy.