Burlington Stores Inc. (NYSE:BURL) rose sharply in premarket trading on Thursday after the discount retailer reported fourth-quarter results ahead of expectations and issued a robust outlook for fiscal 2026.
The company posted adjusted earnings per share of $4.99 for the quarter, exceeding the analyst consensus of $4.75. Total sales climbed 11% year over year to $3.64 billion, beating estimates of $3.59 billion. Comparable store sales rose 4% compared with the fourth quarter of fiscal 2024.
The stock gained more than 6% by 07:03 ET.
Adjusted EBITDA increased to $562 million in the quarter from $456 million a year earlier, excluding $8 million and $5 million in expenses respectively tied to bankruptcy-acquired leases. Adjusted EBITDA margin expanded by 150 basis points year over year.
Adjusted EBIT reached $442 million, up from $364 million in the same quarter last year, also excluding the lease-related expenses.
For the full fiscal year 2025, Burlington said total sales rose 9%, while comparable store sales increased 2%.
“This was a very strong performance in our largest quarter of the year,” said Michael O’Sullivan, CEO of Burlington Stores.
“We are feeling bullish about our prospects in Fiscal 2026. There are external and internal factors that are driving this optimism,” he added.
For the first quarter of fiscal 2026, Burlington expects adjusted earnings per share between $1.60 and $1.75, slightly below the consensus estimate of $1.79. The company forecasts total sales growth of 9% to 11%, with comparable store sales projected to rise 2% to 4% year over year.
Adjusted EBIT margin is expected to decline by 60 to 100 basis points.
For the full fiscal 2026 year, Burlington projects adjusted EPS of $10.95 to $11.45, well above the analyst consensus of $9.77.
The retailer also expects total sales growth of 8% to 10%, assuming comparable store sales increase between 1% and 3% after a 2% gain in fiscal 2025.
Adjusted EBIT margin is forecast to expand by 0 to 20 basis points.
Capital expenditures, net of landlord allowances, are expected to reach about $875 million. Burlington also plans to open 110 net new stores and launch a new distribution center in Savannah.