Burlington (BURL) Q2 2026 Earnings Call Transcript

Group Senior Vice President - David Glick

Chief Executive Officer - Michael O'Sullivan

Executive Vice President and Chief Financial Officer - Kristin Wolfe

Operator: Good morning, and welcome to Burlington Stores, Inc. 2Q 2026 Earnings Webcast. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to David Glick, Group Senior Vice President. Please go ahead.

David Glick: Thank you, operator, and good morning, everyone. We appreciate everyone's participation in today's conference call to discuss Burlington's fiscal 2026 second quarter operating results. Our presenters today are Michael O'Sullivan, our Chief Executive Officer; and Kristin Wolfe, our EVP and Chief Financial Officer. Before I turn the call over to Michael, I would like to inform listeners that this call may not be transcribed, recorded or broadcast without our express permission. A replay of the call will be available until September 3, 2026. We take no responsibility for inaccuracies that may appear in transcripts of this call by third parties. Our remarks and the Q&A that follows are copyrighted today by Burlington Stores.

Remarks made on this call concerning future expectations, events, strategies, objectives, trends or projected financial results are subject to certain risks and uncertainties. Actual results may differ materially from those that are projected in such forward-looking statements. Such risks and uncertainties include those that are described in the company's 10-K and in our other filings with the SEC, all of which are expressly incorporated herein by reference. Please note that the financial results and expectations we discuss today are on a continuing operations basis. Reconciliations of the non-GAAP measures we discuss today to GAAP measures are included in today's press release.

As a reminder, as indicated in this morning's press release, all historical and forward-looking profitability metrics discussed on this call exclude costs associated with bankruptcy acquired leases. These pretax costs amounted to $4 million and $11 million during the fiscal second quarters of 2026 and 2025, respectively, and $16 million and $35 million for the full fiscal years 2026 and 2025, respectively. Now here's Michael.

Michael O'Sullivan: Thank you, David. Good morning, everyone, and thank you for joining us. I would like to cover 3 topics this morning. Firstly, I will talk about tariff refunds. Secondly, I will review our second quarter results. And finally, I will discuss our updated guidance. After that, Kristin will walk through the financial details. Okay. Let's start with tariff refunds. In the second quarter, we received approximately $55 million in tariff refunds. These refunds are included in our reported earnings and provided a $0.64 benefit to our second quarter earnings per share. We intend to fully reinvest these refunds into the business in the back half to deliver even sharper values to our customers.