NYSE:BURL
Burlington Stores, Inc.
A leading off-price retailer offering high-quality apparel and home goods at discounted prices through its Burlington and Blue Nile store networks.
Key Metrics
Investment Thesis
Bull Case
Investors should consider Burlington for its consistent ability to generate free cash flow exceeding half a billion dollars annually while maintaining a lean cost structure. The secular trend toward value-conscious consumption supports the company's growth trajectory as consumers seek premium brands at accessible price points. Strong capital allocation strategies, including share repurchases of $256.3M and disciplined CapEx, enhance shareholder returns and balance sheet strength.
Bear Case
The reliance on volatile off-price supply chains exposes the stock to unpredictable inventory availability that could disrupt revenue growth or force margin compression. High levels of long-term liabilities totaling $5.13B, largely due to operating leases, create fixed obligations that limit financial flexibility during economic downturns. Potential regulatory changes regarding data privacy or labor costs in retail sectors could negatively impact operational margins.
About Burlington Stores, Inc.
Burlington Stores, Inc. operates as an off-price retailer of apparel, home furnishings, and accessories primarily serving the North American market. The company leverages a unique buying model to offer name-brand merchandise at significant discounts compared to traditional department stores and specialty retailers.
Analysis
Management Discussion
The company demonstrated strong operational momentum with revenue growing from $8.70B in 2023 to $10.63B in 2025, reflecting successful store expansion and same-store sales growth. Net income surged from $230.1M to $503.6M over the same period, driven by disciplined cost management and effective execution of the off-price model. Cash flow from operations of $863.4M significantly exceeds net profit, indicating high quality earnings and strong liquidity generation capabilities.
Industry Overview
The off-price retail sector is characterized by a race for inventory and efficiency, where success depends on the ability to source excess stock faster than competitors. This industry segment offers attractive margins for operators with superior supply chain logistics but faces constant pressure from e-commerce disruption and changing consumer preferences toward online shopping.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $8.70B | $9.73B | $10.63B |
| Cost of Revenue | $5.17B | $5.58B | $6.03B |
| Gross Profit | $3.53B | $4.14B | $4.61B |
| Operating Expenses | $3.22B | $3.68B | $3.93B |
| Operating Income | $307.5M | $465.8M | $674.8M |
| G&A | $2.88B | $3.29B | $3.55B |
| Stock-Based Comp | $67.5M | $83.9M | $87.6M |
| D&A | $270.4M | $307.1M | $347.6M |
| Depreciation | $237.8M | $273.5M | $311.4M |
| Other OpEx | $346.0M | $389.3M | $387.8M |
| Non-Operating Income | $0 | $0 | $0 |
| Pre-Tax Income | $307.5M | $465.8M | $674.8M |
| Income Tax | $77.4M | $126.1M | $171.2M |
| Continuing Ops | $230.1M | $339.6M | $503.6M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $230.1M | $339.6M | $503.6M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $230.1M | $339.6M | $503.6M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $2.28B | $2.33B | $2.63B |
| Cash & Equivalents | $872.6M | $925.4M | $994.7M |
| Accounts Receivable | $71.1M | $74.4M | $88.1M |
| Inventory | $1.18B | $1.09B | $1.25B |
| Prepaid Expenses | $131.7M | $216.2M | $263.1M |
| Other Current Assets | $26.4M | $23.3M | $32.2M |
| Long-Term Assets | $4.99B | $5.38B | $6.14B |
| PP&E (Net) | $1.67B | $1.88B | $2.37B |
| Goodwill | $47.1M | $47.1M | $47.1M |
| Other LT Assets | $3.27B | $3.45B | $3.72B |
| Total Assets | $7.27B | $7.71B | $8.77B |
| Current Liabilities | $1.91B | $2.03B | $2.27B |
| Accounts Payable | $955.8M | $956.4M | $1.04B |
| Current Leases | $401.1M | $411.4M | $406.9M |
| Other Current Liab | $555.0M | $661.0M | $827.5M |
| Long-Term Liabilities | $4.56B | $4.68B | $5.13B |
| LT Operating Leases | $2.83B | $2.98B | $3.25B |
| Other LT Liab | $1.74B | $1.70B | $1.87B |
| Total Liabilities | $6.47B | $6.71B | $7.40B |
| Shareholders' Equity | $794.9M | $996.9M | $1.37B |
| Retained Earnings | $644.4M | $984.1M | $1.49B |
| AOCI | $28.7M | $33.5M | $42.5M |
| Total L&E | $7.27B | $7.71B | $8.77B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $230.1M | $339.6M | $503.6M |
| Non-Cash Adjustments | $513.2M | $454.5M | $28.3M |
| Working Capital Changes | $-147.0M | $74.6M | $331.4M |
| Cash from Operations | $596.4M | $868.7M | $863.4M |
| Capital Expenditures | $447.4M | $492.6M | $880.4M |
| Cash from Investing | $-423.1M | $-503.7M | $-882.3M |
| Share Buybacks | $316.9M | $243.2M | $256.3M |
| Cash from Financing | $-391.7M | $-318.8M | $88.2M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-218.5M | $46.2M | $69.3M |
| Beginning Cash | $1.10B | $879.2M | $925.4M |
| Ending Cash | $879.2M | $925.4M | $994.7M |
Frequently Asked Questions
How does Burlington Stores, Inc. make money?
The company generates revenue primarily through its Off-Price segment, which includes the Burlington Stores and Blue Nile brands selling apparel and home products. This is supported by a direct-to-consumer e-commerce channel and wholesale operations that complement physical retail locations across the United States and Canada.
What are the main risks for BURL?
The off-price retail model is inherently dependent on the availability of excess inventory from major brands, creating vulnerability to supplier restrictions or market shifts that reduce discount sourcing. Rising consumer inflation may pressure discretionary spending on apparel and home goods, potentially impacting sales volume despite lower prices. Intense competition from e-commerce giants and traditional retailers offering similar discounts could erode market share and margin compression.
What is BURL's competitive advantage?
Burlington possesses a robust proprietary buying system that allows it to acquire excess inventory from top-tier manufacturers at steep discounts, ensuring low cost of goods sold. The company benefits from a highly efficient supply chain that rapidly converts purchased goods into sales within days or weeks, minimizing holding costs. Its extensive store footprint in suburban and urban locations provides broad accessibility while maintaining high inventory turnover rates.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.