Burlington to fully invest tariff refunds to cut prices; Q2 earnings soar
Burlington Stores Inc. reported a strong second quarter, highlighted by its 15th consecutive quarter of double-digit earnings per share growth.
The off-price retailer received $55 million in tariff refunds during the quarter. Rather than taking a one-time boost to earnings, the company said it plans to fully invest the refunds back into the business in the back-half of the year “to deliver even sharper values to our shoppers.”
“It feels like the right thing to do for our customers,” CEO Michael O’Sullivan said on the company’s earnings call. “Over the last few years, many households, especially moderate- to lower-income families, have struggled with the higher cost of living — higher prices on essentials like groceries, rent, gas prices, etc. So our goal is to use the tariff refunds to give our customers a break.”
He also called out Burlington’s earnings momentum.
“The headline is that even after you strip out the favorable impact of tariff refunds, the underlying earnings momentum in our business is extremely robust,” O’Sullivan told analysts.
The retailer raised its guidance for the full year. It now expects comp growth of 3% to 4% and earnings per share growth of 16% to 18%. Total sales are now expected to increase 10%-11%.
Expansion
Burlington opened a record 51 stores and relocated six during the quarter, for a total store count of 1,287. It continues to expect 135 gross openings and roughly 115 net new stores for fiscal 2026.
New stores average about 27,000 gross square feet and are located in highly-productive strip centers, O’Sullivan said on the earnings call.
“We remain confident in our ability to open at least 110 net new stores annually and believe we’re well positioned to reach and likely exceed the 1,500-store target by the end of 2028,” he told analysts.
[READ MORE: Burlington supports growth with nex-gen distribution center]
Second Quarter
Net income totaled $184 million, or $2.88 per share for the quarter, compared to $94 million, or $1.47 per share for the year-ago period. Adjusted earnings excluding the $41million after tax benefit of tariff refunds, were $2.37 per share, compared to $1.72 per share for the second quarter of fiscal 2025, Analysts had anticipated adjusted earnings of $2.19 per share.
Total sales increased 11% to $2.99 billion, missing estimates of $3.03 billion. Comparable store sales increased 2%, on top of 5% last year, for a 7% two-year stack.
The company operated 1,287 stores as of the end of the second quarter of Fiscal 2026 in 47 states, Washington D.C. and Puerto Rico
