Burlington Stores, Inc., headquartered in New Jersey, is a nationally recognized off-price retailer. The company operates 1,115 stores across the U.S., offering high-quality branded apparel, accessories, and merchandise for the home at discounted prices. In its first quarter of fiscal year 2025, Burlington reported total sales of $2.5 billion, a 6% increase compared to the same period last year. Comparable store sales remained flat, matching the midpoint of the company’s guidance.

For the first quarter, Burlington achieved a net income of $101 million, or $1.58 per share, compared to $79 million and $1.22 per share in the prior year. The adjusted earnings per share (EPS) were $1.67, reflecting an 18% increase year-over-year and exceeding the company’s guidance range. The adjusted EBIT margin improved by 30 basis points to 6.1%, surpassing prior guidance expectations, attributed to timing favorability and operational efficiencies achieved in expense reduction.

The company’s gross margin rate for the quarter was recorded at 43.8%, an increase of 30 basis points from the previous year. This was driven by a 20 basis point increase in merchandise margin, along with a 10 basis point decrease in freight expenses. Product sourcing costs totaled $197 million, up from $183 million a year ago, reflecting heightened investments in asset protection and shifts in sourcing strategy due to tariff impacts on imports.

Burlington’s inventory system has adjusted, with total merchandise inventories rising 15% to $1.315 billion, while comparable store inventories decreased by 8%. Reserve inventory constituted 48% of total inventory, indicating proactive planning in light of anticipated tariff pressures. The company ended the quarter with $1.1 billion in liquidity, comprising $371 million in cash and $748 million in available credit.

Looking ahead, Burlington has maintained its full-year guidance, expecting total sales growth of 6% to 8% and adjusted EPS in the range of $8.70 to $9.30. The second quarter guidance anticipates total sales growth of 5% to 7%, with comparable store sales projected to be flat to up 2%. Adjusted EBIT margin for the second quarter is forecasted to be down 30 basis points to flat, excluding certain bankruptcy-related lease expenses totaling approximately $11 million.

The company remains cautious regarding external uncertainties, particularly concerning import tariffs and their potential impact on merchandise margins. Despite these challenges, Burlington’s approach, characterized by flexibility in operations, positions it to navigate ongoing disruptions effectively.