Burlington Q1 sales, income rise; CEO cites ability to manage tariffs
Burlington Stores reported a solid first quarter that exceeded expectations and maintained its full-year outlook.
The off-price retailer, which is on track to open 100 stores in its current fiscal year, also struck a positive note about its ability to manage tariffs.
“The environment has become more uncertain since March, especially with regard to tariffs,” said CEO Michael O’Sullivan. “We anticipate that tariffs will put significant pressure on our merchandise margin, but we are confident that, as long as tariffs do not increase from current levels, we can offset this pressure elsewhere in the P&L.”
O’Sullivan said while the changing landscape of tariffs creates risks and opportunities for Burlington, the chain has many advantages that traditional retailers do not have.
[READ MORE: Burlington on lease buying spree — to assume 45 Joann leases]
“We can move more rapidly and more flexibly,” he said. “The next several months could be challenging but, if we navigate this well, then we expect to come out ahead.”
Burlington reported net income of $101 million, or $1.58 per share, for the quarter ended May 3, compared to $79 million, or $1.22 per share for the year-ago period. Adjusted net income was $107 million, or $1.67 per share, compared to $91 million, or $1.42 per share last year. Analysts had expected earnings per share of $1.42.
Total sales increased 6% to $2.5 billion. Comparable store sales were flat.
In his statement, O’Sullivan said that it is important to look through the short-term disruption caused by tariffs.
“Whatever level tariffs settle at, vendors will adjust and relocate to the lowest cost source of production,” he said. “We do not believe that tariffs are going to change the longer-term structural dynamics of the retail industry. These dynamics are driving the growth of off-price retail and our business. “
Burlington maintained its fiscal year 2025 adjusted earnings per share guidance of $8.70 to $9.30, excluding anticipated expenses related to bankruptcy-acquired leases. It expects total sales to increase by 6% to 8%. Comparable store sales are projected to rise between 0% and 2%, following a 4% increase in the previous year.
The company operated 1,115 stores as of the end of the first quarter in 46 states, Washington D.C. and Puerto Rico.
