Burlington Stores Inc. Posts Strong Q2 2026 Results, With Tariff Refunds Boosting Earnings

Burlington Stores Inc., a leading off-price retailer, has reported robust second-quarter 2026 results, with earnings per share (EPS) increasing by 38% in the period.

The company's CEO, Michael O'Sullivan, highlighted the impact of tariff refunds on its financial performance during a recent conference call. Burlington received approximately $55 million in tariff refunds during Q2, which provided a $0.64 benefit to EPS and helped boost earnings growth.

"We intend to fully reinvest these refunds into the business in the back half to deliver even sharper values to our customers," O'Sullivan stated, emphasizing the company's commitment to using the funds to enhance customer value rather than taking a one-time earnings boost.

The strong earnings momentum is underpinned by Burlington's ability to convert sales growth into margin expansion and strong earnings flow-through. Total sales grew 11% in Q2, on top of 10% growth last year, with new stores being a major driver of this growth. The company opened 51 gross new stores during the quarter, representing a net increase of 45 new stores after store relocations and closures.

As mentioned at the start of the year, Burlington's strong new store pipeline has enabled it to front-load new store openings with two-thirds opening in the spring and one-third scheduled for the fall. This means that on a trailing 12-month basis, the company has opened an extraordinary 178 gross new stores, translating to 149 net new stores after relocations and closures.

"We are very pleased with the pace, quality, productivity, and profitability of these new store openings," O'Sullivan noted, highlighting the company's successful execution in expanding its retail footprint.

Overall, Burlington Stores Inc. has demonstrated a strong ability to deliver robust earnings growth, driven by its focus on customer value, efficient operations, and strategic expansion plans.