By Nicholas G. Miller

Burlington Stores reported higher fiscal fourth-quarter profit and said that it was seeing customers across all income groups continue to spend despite economic concerns.

"Our view is that our customer looks quite resilient right now," said Chief Executive Michael O'Sullivan. "Overall, as we look across demographic segments, income and ethnicity, et cetera, we're not seeing any major pockets of weakness."

Shares rose 5.6% to $314.43 and are up 33% over the past 12 months.

The off-price retailer is trying to offer better, higher-quality products as part of a so-called "elevation" strategy. The company said Thursday it is achieving its best comparable sales growth in the highest-priced categories.

"Despite the economic pressure [they] may be feeling, our customer is responding to the great values we are offering at these higher price points," O'Sullivan said.

The company said it expected an additional boost in the first quarter from consumers seeing higher tax refunds this year. "Our core customer is very sensitive to tax refund payments, and the early signs and expert predictions are very positive. So we think there may be sales upside, especially in the first quarter," O'Sullivan said.

"It puts extra money in our customers' pockets and that's always a good thing and helps to drive [comparable] sales," he said.

Consumers have flocked to off-price retailers like Burlington as worries about inflation and the path of the economy have prompted them to look for deals. In November, Burlington said its low-income consumers were continuing to spend. It indicated that it would likely raise prices after it tested increases on some items and encountered little pushback.

Last year, after President Trump imposed his sweeping tariffs, the company pivoted away from certain categories, particularly in its home businesses, to preserve margin. O'Sullivan said Thursday the pivot boosted profit but led to weaker sales growth than the company would have achieved if it hadn't been forced to shift its strategy.

While the tariff environment in 2026 is uncertain, "we believe that the industry and our supply base have now adjusted to them and that tariffs are unlikely to represent the same margin challenge that they did last year," he said.

For the fourth quarter, the company posted net income of $310.4 million, or $4.84 a share, up from $260.8 million, or $4.02 a share, the year prior.

Adjusted earnings were $4.99 a share. Analysts polled by FactSet expected $4.75 a share.

Sales rose 11% to $3.64 billion. Wall Street expected $3.58 billion.

Comparable sales rose 4%. Analysts expected 2.8%.

The company guided for fiscal 2026 sales growth of 8% to 10%, comparable sales growth of 1% to 3% and adjusted earnings of $10.95 to $11.45 a share. Analysts see 2026 comparable sales growth of 2.3% and adjusted earnings of $11.17 a share.

It expects first-quarter sales growth of 9% to 11%, comparable sales growth of 2% to 4% and adjusted earnings of $1.60 to $1.75 a share. Wall Street forecasts first-quarter comparable sales growth of 3.1% and adjusted earnings of $1.80 a share.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

March 05, 2026 10:46 ET (15:46 GMT)

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