Burlington Stores (BURL) 26 Nov 242025 Q3 Earnings call transcript

Hello, and welcome to the Burlington Stores, Inc.

Third Quarter 2024 Earnings Webcast and Conference Call. Please note that this call is being recorded. [Operator Instructions] Thank you. I'd now like to hand the call over to David Glick, Group Senior Vice President, Investor Relations and Treasurer.

begin. now may You

and conference everyone. fiscal call results. quarter operator, participation XXXX appreciate in operating today's to good you, We morning, everyone's third Thank discuss Burlington's

and Michael Officer. Financial Chief Our and O'Sullivan, today our EVP are Executive presenters Officer; Kristin Wolfe, Chief our

that the or listeners X, broadcast of expressed A call I without to this turn I the like be no third responsibility may take call that transcripts replay be We December over our XXXX. call Before may available call Michael, not to would inaccuracies inform by this recorded until parties. in will transcribed, permission. for appear of

company's reference. in discuss continuing in or by with measures which today's Our herein Such incorporated XX-K other are are from the we Reconciliations results risks a those basis. included are non-GAAP are results such this projected the copyrights are materially remarks today discuss subject made and follows forward-looking in may of statements. expectations, we today on expressly differ and all to filings uncertainties described on that and the financial expectations SEC, in those note call Stores. Remarks operations the and of and today concerning the uncertainties. by trends measures events, Actual financial that to Q&A that are results certain projected include that Burlington Please fiscal future XXXX risks for GAAP release. are objectives, press strategies,

Michael. here's Now

cover joining I Good you, would everyone, for like morning, to topics morning. David. X us. and you thank this Thank

our discuss third will Firstly, results. I quarter

quarter fourth outlook. review will I Secondly, our

will store our earnings describe I thinking will our details. to our And for I our longer-term pass and Thirdly, I will lastly, the some call share Kristin model program. financial share outlook to Then sales the and on XXXX. preliminary specifically, growth on new comments

Okay.

year. The our our opening top XX% growth this major the in last is with sales third driver sales new Total QX of start quarter on growth of Let's results. store increased XX% program.

with our few by in the about growth for third strength a This the was comp are more continue will store be quarter moments. We store program performance pleased new talk stores, and sales we Comp our top pipeline. in the new very of on new I of period in of increased store our the same X%. to XXXX. excited X%

this, was Our temperatures, these stripping the comp year. After of third by was warmer impact comp out in trend quarter our impacted comp warmer I'm context going significantly have temperatures than I provide to very our described would. drivers. the sales To healthy. illustrate sales as growth underlying sales store last the on distinct explain X QX I normally more having and In QX very performance past, than

Back through that period, first depends on selling. lasts comp than to this second by drive is half after the Typically, the the week of the dominated growth. last the helps If trend For is cooler of for the quarter the of trend critically temperature to remainder weather. September, year, the then positive the School that,

is we our warmer higher our us of of still then a Burlington comp. At that sensitive represent peers. to headwind sales. it Factory. are as than our if hand, last significantly Coat shoppers think Burlington, X/X weather weather This other warmer the On In Many QX. to October, almost than businesses year, in particularly is cold is

by might include all a imagine, to cold trend back-to-school [indiscernible] last with in of significantly. mid-September report categories. points. We down first our comp couple the break were and very that This onwards, weather X the the performance. up dropped illustrate impact the this performance for was than happy going data trend In temperatures our was our sales QX. trend from on. you Then warmer X%. We internally of quarter, much off fleece These track with Let year. quarter-to-date I'm the me so and weeks driven areas

our points the the these For impact up to Meanwhile, for by QX then, categories, this was words, QX negative our a the the represent XX% I In whole, worth represents trend almost mix categories our moment trend XX% is was as of weather weather lower as expands much down October, which comp a sales about described X/X mix was In in This categories X%. ago, of of of store in comp business. teens. comp. other non-cold X in in of QX, warmer August business sales.

our the trend then understates of this was temperatures Unseasonably probably seen is add impact, we since have QX positive in If should this X%. our strip I This Anyway, you we analysis year. not point, in comp just that warm trend drag affects for a underlying encouraged comp underlying even with the this aside that are trend with do also traffic out cold this our sales on consistent into weather -- impact they They business. trend. are the underlying store, which sales additional trend leaving [indiscernible]. also coming comp very every March overall

very to performance comp QX, margin growth. addition on basis underlying in with strong trend, In XX the sales points improvement of X% pleased I was also margin our

and careful was point margin As X higher like were would by this increase chain overreact very this. in Kristin merchant we when other saw school the I not later high-quality Early a will to this QX. describe supply selling, to strong in factor quarter, make savings. we about to call, driven

back September, is to in of to unseasonably react easier plan temperatures. warm able half One quickly means that a and control were it conservative keep advantages the it makes to tight the we that liquidity over of This of the receipts.

year. I've in the So the October, slowdown quarter, comp September end and selling last on about the despite versus X% was talked of this in a at sales sudden the in the past. trend our down inventory basis

and I is am it teams softens. QX guidance. retailer, inventories great it very the current, chase as and is our to good our selling enter in As shape our strong, these in trend to quickly with just period. a are important we critical an is react clean of the This to segue how happy off-price not when we are sales holiday Because but QX. it reacted actions, when

the we as Holiday all optimistic For QX I are and whole. a about reasons have described,

For that sales plan. days calendar, said, ahead the November of ahead holiday month-to-date, Christmas sales Thanksgiving of are With relatively this have and compressed us. from heard big are year. number you probably still weeks retailers, between running as the of specifically is the And other

opened call have total and XXX these stores national are XX will to today with of month, This I new would Given gross of $X.X important QX that to and ago, relocations of new financial scorecard, we goals. On to most moments billion income our new that discussion program. expect some goals and about making headlines prototype. net of and $XX older comprised we talk that X% with and from few now our we XXXX feel maintaining get early all the A the more year to very these store co-tenants. opening this grow pivot a would we model, in opened progress to March, XX,XXX range Almost oversized our previously XXX guidance drivers QX. long-term to And After Overall, years. metrics billion. now factors, are total sales script the we our for model. shared long-range on issued stores commentary key next assumptions handful we XX on towards will are that year X busy factoring and XXX stores this that flat provide operating by of square if end most a are of XXXX, opened is new growth into we Including in store these good our projecting existing we are have I of in take now stores. you we to this closures, about stores that like we like, in this the an we But of malls about a of like and was provide comp The foot update our one specifics stores. assumptions. a stores year.

We are in our rapid progress chain. making transforming

comment about average, in is allowed centers run have XXXX see volume early, rates are I average been in selectively retailers bankruptcy new us we attractive pipeline. well into years, assess but build to of locations our early, well As to stores pipeline sites. the our be lease relocations XX%. it anticipate several forward. has new that run able move say am year. that of this identifying new this that potential expect secure disclosed leases to are is excitement past, couple store been process. supplement to relocations next acquiring the pleased It to I landlords disclosed primary an in But running sales expect we to our our we I at otherwise these but approach XXXX these lift sales typically [ store new confidence our individual ]. in new to that we existing would able past the new continue program might our Again, have new in expectation. store like over working years. Separately, ahead by approach and would our our not store and This reinforce on full we are store million previously, will we and of first by ahead pipeline on have expectation. $X store as have their stores this a to directly going Also, from going of to through with running our We

And through expect, detailed we Beyond we you XX are XXXX, making locations the up bid. In would carefully Of on process. few locations of Bed a dozen as or before picked year, & working up this former Bath locations course, other retailers. any troubled these we from have evaluate picked this economics

as more open full for the meet of store very the these about quality is excited plan to existing XXXX and opportunities all are and our today XXX net our pipeline these exceed XXXX. That in the new I the with deals of XXXX period to about long-range goals or as even Adding well we are We say stores. through well our to model. potential XXX prospect stores new positioned net ahead, opening economic

lot to consumer with in factors. what code potential forecast to happen let impact ahead. back Kristin. more tariffs over I We for in outlook on a the as towards think our difficult provide year and the XXXX. call hand in It of the about a changes will other with is March I is uncertainty update our We and a goals. In me But will at the and moment, and economy do, progress talk before will there of comprehensive that the tax spending, come

other versus forms before, we retail. As and disruption that discussed have in we to of believe off-price uncertainty good be general, tend for

number we addition, a initiatives believe In help improvements earnings in us will next years. to that and exciting there and are internal of few the sales very drive

forward, look we have to for this when know optimistic. for best be we we us. chase. planning This we is us has to and conservatively business, But what comes it our cost As worked feel well That to is that playbook ready cut very the done year. plan

So XXX the total by expansion driven I high stores some of comp sales be anticipate of sales at digits, comp growth for range. will up margin this that expect XXXX operating X%. of We and our net flat outlook would to new growth end high modest single

initial will share and QX this March. more call details in We in our update outlook

like would turn call I over to Now Kristin. the to

morning, everyone. good and Michael, you, Thank

Total XX% result quarter of guidance last me with our of sales growth of third This grew of was was the X%, grew midpoint the third in range. XX% which Comp Let X% year. results. quarter top sales XXXX. start on at our total on sales top

margin XX costs. and EBIT gross last The adjusted expansion were drivers this of on points Our supply expanded basis higher year. leverage margin versus margin chain

the decreased XX basis of for XX.X%, faster markdowns strong XX This and driven generated Let points. XX sales. QX XX entirely SG&A guided by points inventory which from on versus buying. the costs margin points of from million point acquisition to associated basis Bath year. center improvement. in & regular points points was markup gross an in We Freight productivity increase of XXXX, better prior third by chain basis had XX SG&A QX to leases a by basis the quarter. year. $XXX XX in leverage selling, expenses, $XXX progress to were basis points adjusted with basis continued due of margin was This than million lower decreasing XX in percentage walk Product last through expenses Bed the distribution due year, approximately the of basis initiatives. Adjusted me points excluding XX X.X%, Beyond sourcing rate increase costs was price XX turns to driven the also When EBIT year. our above expense in adjusted higher million basis were margin versus delevered last quarter last $XX details. The supply a merchandise third and in as lower quarter was

earnings Beyond adjusted our increase weather. our our the quarter, QX on in our inventory leases. At range the third expenses XXXX our share cold QX of high down end inventory exclude year. quarter, versus year's XX% at merchandise inventory of guidance prior were quarter associated XX% Our per the reserve to pulled end a $X.XX end unfavorable At back of Bed reaction with QX represents X% last of the was weather versus of versus the year. approximately $XX total in million of XX% the Bath the & pretax and XXXX results Last end we inventories store the receipts in was as the of comparable

very values have are that with we of the the and reserves. the in We merchandise pleased quality

During At end stock. had the in common repurchased repurchase authorization $XX that on $XXX our million share expires we remaining in QX, XXXX. million the quarter, August we of

to turn touch I chain supply strategy. to would on Before longer-term guidance, like I briefly our

we requires. us distribution and off-price to own to will than support flexibility As forward, that lease to the these enable we've facilities previously, new efficiency like would centers. design model discussed our going rather This

that under is We facility. have to to target construction Georgia, Savannah, million-square this X foot open We DC intend on be a in XXXX. in own new

as driven investment levels. distribution by reminder, slightly XXXX historical opening our XXXX sales, in new new and a we our program previously This in discussed, our expect be X% around than CapEx As and of store centers. to our is higher

of It explore possible only not have and existing would where levels opportunities existing this may opportunistic the the versus take that opportunities pursue These previously. In is make into are lease X X we deals addition, our of also center. sense lease ownership for DCs, lease discussed might an we that to CapEx distribution or work. economics we buy factored

to outlook for of fourth Now fiscal XXXX. quarter I will turn the our

our sales, maintaining quarter We for fourth total per guidance and are margin XXXX share. sales, EBIT earnings comp

fourth X% guiding comparable are to flat X% X% for store quarter. to to We sales sales to be increase up with the total

unchanged call to to previous margin shift $X.XX important earnings discussed last the still our we earnings as QX calendar our outlook XX We to margin outlook. adjusted This And to earnings it's negative of note, on EBIT per fourth our sales, by quarter adjusted expect EBIT adjusted adjusted translates a margin decrease per XX and points week quarter's range basis from on share to share. total has XXrd that impact $X.XX.

of increase growth range basis XX XX basis and factoring after implies in actual sales QX points. increase total For XX% QX fiscal X%, outlook guidance, to an results margins to store XXXX, comp sales our this to EBIT from X% approximately of and to points

share Michael. earnings now in the XXXX expected now be in to factoring actual adjusted turn year QX will is $X.XX of per the full to range back call $X.XX. I to Finally,

Thank you, Kristin.

the to turn questions, I points like call. I X over would today's to Before emphasize key from call

Firstly, third we very quarter. good trend underlying achieved about we feel the the in that comp

our March since cold also ] comp X%. parking in on our QX. growth. Our points with [ X% leverage pleased achieved was out basis factoring around very weather performance of This trend consistent was [ We're year. comp of trend We comp categories XX after ] this with

the well QX. positioned selling believe in that holiday we we are enter key as Secondly, period we

[ the of on strength about assortments, optimistic our holiday third the are We business quarter trend but we our on sales ] underlying our our and in are peaked prospects. managing cautiously

feel about very goals. Thirdly, the making are we our progress good we towards longer-term financial

new But call more progress very been The for and in with performance opening the talk now good. I to March. program. year-end XXXX for about stores our pipeline turn store your our will looks strong, this would are our pleased new has our We and in like call questions. beyond early store of especially we XXXX over

JPMorgan. Matthew from from first Your Boss Instructions] question [Operator comes

good Thanks, Great. morning. and

impact to weather the in weather trends, be your would forward, include sensitivity I XXX on maybe, And you cited, So just from and you remarks, basis risk that said hurricanes? weather Michael, that impacted points. the see XQ any your looking do Does in your quarter-to-date businesses weather the on then great. quarter warmer the by really comp to unseasonably cold just warm? fourth color kick if November, the fourth you off maybe Or to be just think, were additional this

question. thank for Matt, you the

about like It mistaken I to Before businesses to comment listening is impression of absolutely of prepared that might would that us investors is a when in business. cold merchandise cold retailers make competitive we a our one I weather a answer somehow huge I position advantage. is great remarks problem. business outerwear get a they question, strong fact that our not. weather source is for today, The The that are the a first of in our realize need your strength the and shoppers outerwear think

We we are build at ways very to good it, strengthen to continue for and that look business. will and

like can there year. After our happens, were be variations of had, be like average, XXXX. be but call said, in it. the been be silver probably that's next will October very also we and fluctuations that on to bring into The October that an in is that a the with that in the to year-to-year, buying complaining In that can warm, variations odds where in cold to we months for for or a out put this you outerwear cooler next where likely out see If will a flexibly thing with will tend up us. just this above categories business are we than we'll And year, this, weather sure the ready next temperature comp date then transitional manage the long-term in the October, we likely years about reserve good can but there a off-price of those out unusually has will should and know even call tailwind retailer, the to from key it's especially react temperature that and season to like well over temperatures time. one So that that course, as we've weeks, be not add be we down. I lining those coming terrific opportunities so to lot year. is

So that stores that. hurricane affected the let with additional a you can can discussed all bottom during at The our impact line to estimate hard that about in the relate local impact, by Separately, question. quarter is strip been any of hurricane our your impacted in exclusively have then We me an temperatures were us temperatures. power their that address preface, during warmer if hurricanes sales we specific remarks points the third subsequent the the as on of outage. Anyway, It's prepared impact by We comp major look out and quantify the to the hurricanes. comp X point. growth QX estimate and we for would warm the period that not X%. comp

last described, or for those warmer we're affect year affects we temperatures might retailers risk. that temperatures just on are we unfavorable Now why of question not QX, a companies. Maybe out QX. reason remarks wrapping weather in part time that It's least a at is there to there at reasons be about recognize presence of but by impact all that versus the hurricane those all with we prepared rationale impact risk other retail In up or couple weather this of in we've areas. favorable course, your hard contrast, out retailers warmer in predict, for warmer -- or of way, differentially all the that reasons comfortable is the us of temperatures that the the that the that, the in called calling our with

good be And understand for holiday In said that for Firstly, point, with relative secondly, as giving. selling the the to for more they're November outerwear, it's month-to-date and holiday further to ahead selling to important cold quarter, start the I X, weather or into is could get running words, a of looking important as quarter other or but plan. X remarks, becomes off the in the less looking customer into gifts this next likely the come toys at merchandise. store gift weeks, to we

businesses those Our strong. early in has selling been

about So we're QX. optimistic

Kristin. follow-up And Great. then a for

quarter. the inventory you trend If residual any on your to comments inventory the third just risk fourth or slower any XQ about sales tied could to with consider the imbalance there's If levels quarter? outerwear elaborate exiting in just markdown

Thanks, Matt.

pleased third inventory we were very we levels, Regarding the inventory with manage how during quarter.

to careful to store quickly And QX were described, and as the X%. We temperatures resulting School a Michael the the As pulled to quarter. to the result, ended not strong and on with challenging we comp in half selling the inventories our merchants overreact reacted of down back trends as first I mentioned, Back receipts. warmer sales

Our inventories major the clean not have total markdown relates versus to we finally, penetration current, and of increased quarter. And last liability a our year. into as inventory to it inventory, reserve fourth XX% heading XX% do and are

later able just make. the could finally, reserves, about add, perhaps mentioned, our outerwear to values. in the to buying the happy category start in season. very this to feel We and Michael as great we opportunities And especially translate good are slow We were I buys with should content the great

comes question Wells Ike Fargo. next Your from Boruchow from

Two for me, Michael.

business. I great. be research, segment just low-income your if that trends could out within helped guess are your seeing but you've the I on underlying of dollar seem health have struggling was guess, I your been know I just this the customer stores year, you to in doesn't you comments First, in have this past, the us consumer wondering -- what affected would share

tuned I a the offering tuned demographic We're focused very peers. great index among customer for customer. question. value important on than And thank you We more let happening our so is much were me tend now, as we're this retail what to describe to focus into income different we to customer in are given the very that is us. on dollar what's on comment Ike, we you stores. that happening in really business are is higher ever have lower seeing -- than that around lower-income I we their more demographic. ours, what would customer Yes, instead, with with say with before Their know, to the customer. data can't consumables. But we the

things the on we track of our area. local of based that One very closely trade is the of stores demographics their performance the

So local the of area, we stores their segment we trend. demographics and our based upon the at trade sales look

years Some in volume income in and of stores productive the were stores our areas. X are lower underperforming those highest And trade chain. XXXX, most ago,

back the first general to because the we finally that well, fast since a forward chain. stores as from outperforming on we are their moderate think lower-income overall we edging analysis that income in hiring be customer. may discretionary in evidence also big to performance impact lower that for lower that looks down. But we've relatively other performance other coming volume, in for and Now heard trend. If compounds our customers, trend, shoppers the I are had on as focused on high that by to I see trade bands today, they seeing our that may that retailers Based areas of should comments be are value. we comp great looking income that income think are a from are part incomes trading healthy add that is like up. demographics, XXXX, area store trade of maybe And time real it customer

groups, bore in higher previously, of or really discussed the living shoppers Unlike cost impact use increases capacity have savings don't to can XXXX. or the other debt that prices. grocery income of customer rent we've they brunt that As those cushion of

had pull discretionary in So sharply spending. to back on customer that XXXX,

to the the that's year as to think is and their so, support incomes we Over more. And back what that up, strength real they're of trends. or past pick our started seeing have helping spending stabilized underlying we're

Super And it. Kristin. Got maybe a follow-up helpful. then for

details What's additional maybe you maybe color QX guide. your embedded some drivers in margin? in Just just for on QX margin And QX? expansion, us margin the the can give the of on on plan

those Thanks a for third on points start XX basis were on X% a deliver little the quarter. to the especially I'll drivers. question. operating bit We pleased the more of provide margin comp. with expansion, I'll color

basis Within margin we markdowns margin up was faster XX the by line, selling This had points. turns. as regular driven was gross merch strong price lower and

We in also as help sales of And driven bit higher then freight buying. basis by a XX markup improved from a also of margin got gross percentage points. by better

product on down costs. Moving sourcing

And costs mentioned, by points. Bath progress delevered we centers. primarily the by by on As the higher last due efficiency to in supply improvements leverage excluding then are And balance our other comp. a P&L XX basis points, initiatives. XX continued chain driven by fixed on including the XX impact our basis of This about X% distribution productivity adjusted was These was of Bed deleverage & and income. Beyond points SG&A year, leases basis depreciation of

quarter, we're maintaining quarter. If our was of that the we to the fourth guidance. issued previously now So turn kind third

to was EBIT to to XX lower a EBIT XX sales growth point in X% are that want basis QX growth, to flat talk X% of I margin. a So and total several the X% drivers that projected a through. And decline margin comp in there

seen with a exposure gross will levels merch last we we've last call levels transitory year-to-date. ocean the fourth in freight There's we less similar that quarter. margin are referenced on quarter's spot than the provide the costs merch expected in margin few market. to to that benefit year's First, have clearance to headwinds some margin And incremental in be more

shortage Secondly, we're accruing to compared year-over-year a rate last year. higher

true fiscal with up this course, of the the end inventory year. of will, physical at our We

from to savings the benefit Thirdly, supply cost chain we started year. the quarter last we're lapping in our that in fourth

X less are compare us chain calendar there impact ahead week QX. in expect in we last an we there about And year-over-year. quarters with for shift. as productivity the supply on the is call, XXrd-week the benefits point So when we We're last year quarter's final fourth discussed of quarter, the

store we more growth, sales, in we total and comp margin into for cost total volume, the up in this for and shift and sales we sales last we translates we and and higher-margin high November, a for lower -- on gain we sales, year, or an But lower versus week lower lose earnings. Essentially, deleverage. this growth impact there's in margin adjust line then So experienced weeks. QX January, week a volume fixed

note to that the want X operating drivers factors really as the QX There 'XX and prepared would X we trend expansion in of on comp. QX. in several EBIT margin remarks, in So into margin make. a those EBIT margin modest are I final we XXXX. I And QX transitory shared timing expect outlook. wouldn't margin impacting But are extrapolate

next from of Lorraine comes Bank Your from America. Hutchinson question

lot the the think this? over Michael, I And of uncertainty, the new what business external are for policies a you realize there's do next on your administration of years? preparing you might but have impact how few

pay our think, what discretionary overtime then the that that that course, are real $XX,XXX power headline, about I a are terms enhance taxes in or credit for the cost I difficult it's absolutely it, there item, of on business down of to energy. helpful predict. our or incomes The separate tax policies earnings could or they question. that cash. tips core of imagine if higher think or be might our the lower would I If as taxes And very call reduced, especially very and help think business, spending that's a I customers, of example, policies on corporate to bring might child some policies

retailer. We foreign subsidiaries. have are We domestic a don't U.S.

United the Our in earnings all States. are

taxes have corporate a huge would So lower impact.

course, potential headwinds. are risks there also and Of

For slowdown. economic or an such the up to think, again there potential then or example, federal pick are as were reductions the if policies if or I were inflation of tariffs really And where policy. immigration scale the programs. impact, on depends there tighter controls in

how they'll don't on or significant know will countries. to tariffs, categories example, For which what apply those even we be,

that that, everyone, that a disruption been often very headwind short a details uncertainty the whenever uncertainty for in I end. for the work to things words, be good may just off-price uncertainty then other the assessment. But flexibility while significant conservatively, reason but a business the off-price out uncertainty is is general and ready business in the there wait will then implication or well the do be before react. just we to is model is that The for bank some handle it's see we that for the to and able maintain better experience well and disruption retail happens. comment. work In The the road, there to whatever My need and maybe off-price make believe we execute If us I that respond have we for along term, often think headache has can well when is should why be us and including external bumps to environment, I our make executed, disruption in an well. out us.

outlook flat for the mentioned X expansion? are expansion how on curious complaints end. likely you modest this I'm you then expansion additional thinking of the to your major plus about the provide your high you're confidence the drivers remarks, about of at level Kristin, and about XXXX? margin margin what be? some In And to the possible And any can details

Thanks, a Lorraine. good It's question.

health is fiscal Michael obviously, change caveat few 'XX with tariffs what if thinking. change, it's our some we high-level that what preliminary work today, course described, the can know But of and we've et that next a lot fiscal we months. just could bit over our there said, on customer, lot a conditions First, or whether and really share unknown, we've of given that of next preliminary the I'd a do for budget plan done of shared cetera. you our And year, the as policy, remain core for

acknowledge same including XX comp, to drivers, some benefit improvement and margin operating basis manage the initiatives. margin First, of to than to a our Similar to we fiscal this perhaps flexibility revenue react expenses of growth expect single-digit a would, to effectively to flow stores. just XXXX, that comp, of operating points. And course, merch and improvement, couple expect more risk. XXX modest most any started better planning to would is strive we XX while gives on there the to I want to we would flat conservative sales our upside where a expect less business XXXX, by And at from net we the to are comp range this, do expansion any as supply chase us as driven bit we our well on new high X% chain comp than that. margin downside productivity effectively get for X% and through and continued reasons do

pace First, over supply chain cost points shared years supply a long-range first of we've had X at In long-range our time year, we this we the at chain spoke XXX captured savings the to plan. cost we in basis plan driving last expected. than faster savings

likely will that in of half XX points basis XXXX. recognize about around We or fiscal

expect on on bit conservatively And on fiscal rates good that year. to impact more have freight year. very what 'XX. freight we're So 'XX the a we next But next cautious certainly based plan for we over and could and here uncertainty, secondly, We've progress freight want balance, on being around year. tariffs made this

we expect supply ultimately, efficiencies. markdowns come EBIT we the to will above every would occupancy on points faster comp margin points from comp, X% of to like and basis improvement on turns chain XX basis improvement merchandise costs some So incremental lower from And offset incremental These in a to XXX also additional comp comp. be I and margin. X% expect deleverage by the store want X% that out for the call of margin XX

environment stage assumptions done sense I but a change this at could course, want caveat, we've did assumptions external as historically. as of to these evolves, for give the a final our So

Kernan question comes TD Cowen. from Your next John from

here. continued Michael, Congrats another question on expansion. maybe the $XX,XXX margin

at been you're time own among a and announcements team thinking Burlington at of the frame peers. your are for feeling There's the CEO about You've recently, days. the Burlington turnover number of a How for sector these including That's a about off-price X long years. you CEO your how overall? been one time executive in role and

just on That's great. to Burlington. $XXX,XXX man, XXXX a maybe I'm that's question John, XXX% But going XXXX direct answer. I'm The growth not long-range plan, of net those operating I think, should tripling expand In I Burlington. young beginning are just Well, to I should I'm sales I'm answer that be just new targets. growth numbers those income. ambitious and committed add not take of and I we've -- laid to XXX a couple, for is not thinking out, a that to fairly stores that around And intend anyway. your financial retirement. the are minute question. XX% higher to

the things store here, in and chain, to and environment store potential XXXX. Leaving plan personal numbers, We my merchandising, programs. a And potential feel driving level, full be have right on business the really help aside in and localization, our initiatives We're us there. that get tremendously will to exciting team vested store with in working specific our those supply drive though, relocation beyond I with and well programs. its support doing new I specific some to

to I've the brag, true about senior A we've talk the been feel Across me level. tremendous let in That's mean I lastly, So talent. Burlington. the but genuinely the assembled company, at especially here like don't at able bring team to I team.

to strong base a and have off-price a in functional and homegrown talent. category of from successfully also experience We we've expertise have other retail we huge experienced Burlington brought and and amount experience, but very that, of tenured long environments. Add

a that Now take that, I've you time real bit team like of can it But in put past over to XX the a seen together maturation gel. to group. whenever XX a little new months,

very our leaders operating senior team. effectively think a I as are

chain the to achieved can it. do about question. these You in savings details think then, response on you've of but how see expenses model, point spoke to share good more and this some to strong in range That's the Got 'XX opportunity throughout some leverage can We And basis initiatives? we related to on expenses a hear. in chain you year, Kristin, the supply supply beyond?

John, I appreciate question. the

supply deleverage running really is of are pleased We ahead schedule. recapture that chain

of we As just target efficiency that We the XXX supply cost chain XXX an driving margin productivity basis we DCs. XX supply savings helped initiatives our long-range as points basis earlier in question, potentially QX, chain points drive in improvement outlined leveraged I Again, in estimate plan. described in the basis points of improvements.

merchandise to have moments a mentioned dollars saving looking on automating and the operations. And within we're We labor I We're number processes in ago, ultimately touches process few time DC important DC, productivity redesigning reducing of into select in year and be In supply ahead our working how as a chain. when it's QX, initiatives we flows that keep turning merchandise DC. year, the a on last we mind ago. savings XX meaningful leveraged to chain will in started we drive real this expense last point in quarter by year line the was a supply first basis points, lapping expense cost for and QX us to

points better modest to chain year. We'll XX than expect in in more of basis sourcing on probably QX we 'XX, showing around this last supply would So leverage leverage of product show year.

term, that we support leverage goal So new halfway modernize our to our chain larger do drive then supply point an as plan. opportunity longer much we're in DCs we about to XXXX, embedded X-year automated the open beyond our more and to growth. basis XXX to there And incremental have with expect we

and design open an distribution As I XXXX, off-price Southeast have our DCs, with a is for in mentioned, opportunity great Savannah, of with more and this. to automation. it's new DC Georgia example to centers slated And these and we

next Brooke Sachs. Your from question Roach comes Goldman from

Michael, to on strategy of the brands an assortment? Burlington can provide better within you the the mix update increase

question. you the thank for Brooke,

better for reframe would to I'm I our of that and brands, years, thereby the better question deliver going say think couple than to working just your assortments to on customer. been we've slightly. the elevate I value last Rather focusing even

But means areas brands. the sportswear say, a home about that it's other or higher or like quality fashion. or of the better or recognizable like design businesses in footwear, the more or in Now mix juniors,

but within our importance value, that of with assortment. we're very together of work customer, it great drivers driver, context value. also best the the are each those a on of Now sure make hard business to And price, which good, and [indiscernible] better, depends offering all depends on the is the why

the Now mix, quality brand terms our offer to design There's to revolution. strategy as assortment you rather new boil strategy. fashion, great in margin this value an shoppers hit no and we've a elevating is is here. evolution than always been discussed in and has of isn't before, to significant much a When of down, more it

see markdowns working. as fact, increase In trend, as strong underlying with Kristin and higher evidence described, we elevation the an prepared lower in merchant QX, achieved In by remarks. our markup. that we Together is driven sales margin in our strategy that

then potential detail call. speak in about thinking just a mentioned impact Should today's be you how you're they Kristin, times business? And been on tariffs? and on on more tariffs implemented Can the have for Great. few Burlington's

tariffs. very Yes, this good talked one on I Michael that's this some put answer tariff it's point. about a question. year's including data the in can provide next and But unknowns at difficult It's pretty some to to context. history uncertainties,

direct the from merchandise. directly the is our U.S. China. are imports, tariff and relatively goods the majority our XXXX, to import to of have much where So paying many And of imported we expect X% into lower small direct about than directly exposure we import is retailers. In those

it, our call has tariff to China. merchandise X% let's So exposure direct about of

a another. out front a on in the create continue full-price And and could lead strategies flexible build the price disruptions incremental XX% we provide where the we over tariffs mitigate ultimately value as as These gap, tariffs. to buys to Michael as saw good and XXXX sorts fiscal to did time get buying i.e., are well will categories sustain importantly, partners we merchandise we on that ensure have most frame, as We 'XX impact. we in of examining which paying versus tariffs, offset and well XXXX various look customers or side for of finally, merch directly up with savings levels and vendor work Manufacturers 'XX. most to an is importantly, could the to well generation the provide margin lead for with do for we will are ability model, described off-price. likely value. not to cost value up we the and country of We'll We production retailers. And of we and from And actually pay may in disruption, to both from. retailer off-price. kind in negotiate as last the So our will we off-price do and our a move inventory where to managed earlier, buying during of And or opportunities sourcing source as X was tariffs tariff.

our uncertainty from tremendous around tariffs, import So off-price we acknowledge terms of ultimately, there's where. we and penetration direct buy in And is but our is what model flexible low.

issue. So positive ultimately, potential this we a as we as face see that

question next Your Morgan Straton from comes Alex from Stanley.

Michael. up are initiatives about a step over time? Burlington's financial X.X Taking will those for what you Maybe in profile back, now? how show Burlington most excited right And

stores, and supply recently just IT. big estate that maybe time. bit have thank question. should question, real initiatives a little mean initiatives Well, out across about will a really answer rolled in this merchandising, let you But highlight over we've first going your expect question. I and Alex, of to X many the company chain, on it. talk impact that I there I me are Actually, important I for all, specific Well, the like

up process. we Firstly, merchants this followed so in XXXX, trending then year, recently, of we and completely that refreshed in-season out analyze and But rolled of updated new our sales in suite the trends. use the to a reports first quite half that

move react what are businesses can trending. areas that out reforecast pull into to rapidly they're trending, they buy that planners money and can sales frequently can sales of more to dollars and Now open in merchants they that seeing and to reports. and those allows are not They

speed they degree, changes. some up forecasting to to new to and And always visibility they've to course, merchants better that degree. more add But to in enables and factory process the of process. new accurate that, some are been making the provide those greater do and able with to support reports frequency the Now date our

back us those already think are effectively I and on chase based rapidly improvements So pull or to more helping the trend.

on and to trends store store. by allocation we level assortment summer, more the and individual the the new respond drive level customization store effectively algorithms in thereby greater turned class sales Secondly, to of of

some based really Now turns time, machine over on that will store level algorithms effect they're the allocation drive but lower markdowns. for to take based it time selling. those going receipts stronger localization to on of should learning. class build, faster are and And That optimize sales,

of with peers. execution, to what I just think I've behind just systems, do a I've we're that on Burlington peers. focused to opportunity and saying upside. I are X provide good described upside illustration But We going very comes described, we're to our to that. we and of another gap how have and that we initiatives And X.X. The way tools off-price huge when narrowing know on that processes, we're that's the do X our examples of that are it think, good initiatives trying versus

question That's in clearance Kristin. you versus it relates really near-term provide as just price regular comp for quarter exciting. more Maybe on selling? X Can some to trends color the

a a that the for margin to little thanks provide is but me QX, acknowledge benefit this Alex, in question. just more merch detail. I let

In increase comp quarter, Our regular the in our a trend. price X again continues selling QX, strong. did sales regular be our XXX selling very once third above basis outpaced trend. priced Regular points to overall price

control. merchandising provide merch less we then translates it's seen business our which more believe year-to-date. lower clearance of driving we've initiative, on I but turns question, team our inventories, approach similar regards year's levels I which this chasing X.X see than an our from leaner In to higher earlier QX, thereby maturation to with our be merch and to levels, do We inventory operating mentioned markdowns, growth continue incurring will worth as validation in QX are in to and strong further And merchandise margin. And of and really reiterating. benefit to this benefit projected the margin faster last

at Operator, I time. think we're

You the Michael. turn back to call can

hand like We I'd done final are O'Sullivan to for now back now session. with the Michael over Q&A to remarks.

to look fourth everyone again quarter close discuss to XXXX March in interest Happy your and a forward for Well, let you today. wish our thank Burlington call your fiscal me in you like talking time to Thanksgiving, I'd results. by Stores. the to We everyone thanking for

Thank you today's for attending call.

You may Have now disconnect. a day. wonderful