Burlington (BURL) Net Margin Reaches 5%, Reinforcing Profitability Narrative in Q3 2026

Burlington Stores (BURL) has posted its Q3 2026 results, reporting revenue of $2.7 billion and net income of $104.8 million, with EPS coming in at $1.66. The company has seen revenue climb from $2.5 billion in Q3 2025, while trailing twelve month revenue now stands at $11.2 billion, up from $10.5 billion a year earlier. Margins have held firm, setting the stage for investors to evaluate how the fresh numbers inform or challenge existing growth stories on BURL.

See our full analysis for Burlington Stores.

Next, we will see how these reported results measure up against the prevailing narratives and expectations in the market. The results may provide new insights for seasoned followers of the stock.

See what the community is saying about Burlington Stores

Net Margins Up to 5%, Beating Prior Year

• Net profit margin improved to 5.0%, up from 4.5% a year ago, reflecting better profitability as net income reached $560.5 million over the last twelve months.
• Consensus narrative highlights that this margin gain is driven by operational upgrades and supply chain investments, which are helping offset industry headwinds and deliver measurable improvements.
  • Analysts note these initiatives are part of Burlington's larger push, such as opening new distribution centers, to enhance productivity and margin control even as traditional retailers struggle.
  • However, the narrative cautions that margin expansion could face pressure if external factors like tariffs or labor costs rise faster than Burlington can control expenses.

Consensus narrative sees these margin gains as confirmation that operational shifts are taking hold. Catch the full story in the full consensus narrative link for Burlington Stores. 📊 Read the full Burlington Stores Consensus Narrative.

Share Price 21% Below Analyst Target

• Burlington Stores is currently trading at $260.65, which sits 21% below the analyst price target of $334.56 and 31.2% below its DCF fair value of $378.85.
• Consensus narrative points out that this discount exists even though Burlington’s price-to-earnings ratio remains above industry averages, signaling that investors are weighing the company’s earnings growth and profit margin improvement against a backdrop of higher-than-typical valuation multiples.
  • Analysts contend that for the price to approach targets, investors must believe earnings will reach $993.7 million, with margins expanding to 7% over the next three years.
  • This tension between a discounted price and elevated earnings expectations raises the stakes for Burlington to deliver on its long-term growth story.

Revenue Projected to Trail Industry Pace

• While revenue is forecast to grow by 8.4% per year, this lags the broader US market’s 10.5% projected rate and reflects an anticipated step-down from Burlington’s previous five-year annual average earnings growth of 26.9%.
• Consensus narrative notes that, despite accelerated store expansion targeting high-growth regions and investments in automation, Burlington’s growth outlook is tempered by its slower revenue pace and below-market earnings projections.
  • The company’s heavy reliance on physical stores and limited digital investment is cited as a potential cap on future growth compared to more omnichannel-focused peers.
  • Bears argue that, unless Burlington adapts its channel strategy, it may struggle to maintain its growth premium over the specialty retail sector.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Burlington Stores on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your Burlington Stores research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

See What Else Is Out There

Burlington’s revenue growth is projected to lag both its historical pace and the wider market, which calls its long-term expansion story into question.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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