Burlington Stores: Margin outperformance reinforces opportunity for outsized EPS growth

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Burlington Stores: Margin outperformance reinforces opportunity for outsized EPS growth

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Burlington Stores

Margin outperformance reinforces

opportunity for outsized EPS growth

Reiterate Rating: BUY | PO: 367.00 USD | Price: 326.23 USD

Reiterate Buy as we expect continued market share gains 28 May 2026

BURL’s margin outperformance on the 6% comp and sales upside from new store Equity

openings point to an opportunity for continued outsized EPS growth. We expect market

share gains vs. the industry to lead to upside to estimates and reiterate our Buy rating. Lorraine Hutchinson, CFA Research Analyst

BofAS

FY guidance raise despite freight pressures +1lorraine.hutchinson@bofa.com646 855 0951

Management raised full year guidance by the beat, now expecting full year comps of 2- Mary Sport

4% and EPS of $11.45-11.80. This is surprising in light of new freight pressures from Research Analyst

the rising cost of oil. For 2Q, management has returned to this year’s original comp BofAS+1 646 743 0227

algorithm of 1-3%, and guides EPS to $2.05-2.20, nicely above our $1.84. This includes mary.sport@bofa.com

EBIT margin +30-60bp.

Strong comp drove 1Q beat Stock Data

EPS of $2.10 beat our/Visible Alpha consensus estimates of $1.72/1.69 on stronger

sales and gross margin (GM). Sales rose 14% on a 6% comp as early new store openings Price 326.23 USD

had an outsized contribution. GM increased 30bp, nicely above our (10bp) as Price Objective 367.00 USD

merchandise margin (+20bp) and freight (+10bp) combined for the beat. This was Date Established 6-Mar-2026

despite earlier markdowns vs last year. Operating margins rose 10bp, as the GM beat Investment Opinion C-1-9

and 10bp of SG&A leverage offset lower other income (30bp). 52-Week Range 218.52 USD - 351.85 USD