Burlington Stores, Inc.
For the period ended Aug 2, 2025. Filed Aug 28, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 2, 2025 · Filed Aug 28, 2025
BURL$246.76-1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-05-03; filed 2025-05-30.
0000950170-25-079172
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-08-02; filed 2025-08-28.
0001579298-25-000010
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 170 previous paragraphs and 190 current paragraphs.
114 unchanged; 47 reworded; 24 added; 7 removed; 2 previous and 5 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
Represents amounts charged for certain litigation matters.
Current report
Represents amounts charged for certain litigation matters.
Current report
Impairment charges on long-lived assets were $1.6 million during the second quarter of Fiscal 2025, related to unrecoverable store assets. There were no impairment charges on long-lived assets during the second quarter of Fiscal 2024.
Current report
Interest expense increased $0.8 million during the second quarter of Fiscal 2025 to $17.4 million, compared to the same period in the prior year. Increases related to the upsize of the Term Loan Facility and ABL borrowings were offset by increased capitalized interest as a result of the ongoing construction of a distribution center. Additionally, the Company paid down the 2025 Convertible Notes during the first quarter of Fiscal 2025.
Current report
Six Month Period Ended August 2, 2025 Compared With the Six Month Period Ended August 3, 2024
Current report
Net sales
Current report
Net sales improved $382.6 million, or 7.9%, to $5,201.1 million during the six month period ended August 2, 2025, primarily driven by the net sales of 81 net new stores opened since the end of the second quarter of Fiscal 2024, as well as an increase of 2% in comparable stores sales during the six month period ended August 2, 2025.
Current report
Cost of sales
Current report
Cost of sales as a percentage of net sales decreased to 56.2% during the six month period ended August 2, 2025, compared to 56.8% during the six month period ended August 3, 2024. This improvement was driven primarily by increased merchandise margin and decreased freight costs. The improvement in merchandise margin was primarily driven by lower shortage. On a dollar basis, cost of sales increased $185.9 million, or 6.8%, primarily driven by our overall increase in sales.
Current report
Selling, general and administrative expenses
Current report
Selling, general and administrative expenses as a percentage of net sales decreased to 35.0% during the six month period ended August 2, 2025, compared to 35.1% during the six month period ended August 3, 2024. The decrease was primarily driven by an improvement in store payroll costs, partially offset by an increase in incentive compensation. On a dollar basis, selling, general and administrative expenses increased by $128.8 million, or 7.6%, to $1,818.0 million during the six month period ended August 2, 2025. The increase was primarily driven by our 81 net new stores opened since the end of the second quarter of Fiscal 2024.
Current report
Depreciation and amortization
Current report
Impairment charges – long-lived assets
Current report
Interest expense
Current report
Interest expense remained flat during the six month period ended August 2, 2025 at $33.2 million, compared to the same period in the prior year. Increases related to the upsize of the Term Loan Facility and ABL borrowings were offset by increased capitalized interest as a result of the ongoing construction of a distribution center. Additionally, the Company paid down the 2025 Convertible Notes during the first quarter of Fiscal 2025.
Current report
The average interest rate on the Term Loan Facility was 6.1% and 7.4% for the six month period ended August 2, 2025 and the six month period ended August 3, 2024, respectively. The average balance on the Term Loan Facility, excluding the original issue discount, was $1,386.8 million and $935.3 million for the six month period ended August 2, 2025 and the six month period ended August 3, 2024, respectively.
Current report
Income tax expense
Current report
Income tax expense was $65.2 million during the six month period ended August 2, 2025 compared with income tax expense of $57.0 million during the six month period ended August 3, 2024. The effective tax rate for the six month period ended August 2, 2025 was 25.0% compared with 27.2% during the six month period ended August 3, 2024. The increase in income tax expense is due to higher pre-tax income. The lower effective tax rate is mainly driven by the tax benefit from stock-based compensation.
Current report
Net income
Current report
We earned net income of $195.0 million for the six month period ended August 2, 2025 compared with $152.3 million for the six month period ended August 3, 2024. This increase was primarily driven by higher sales, as well as increased gross margin rate. Net income included $12.4 million and $6.8 million of expense, net of income taxes, for the first half of Fiscal 2025 and Fiscal 2024, respectively, related to the bankruptcy acquired leases.
Current report
On June 11, 2025, we entered into an amendment to the Term Loan Facility, which among other things, incurred $500.0 million of incremental term loans under the Term Loan Credit Agreement as additional Term B-7 Loans. The incremental term loans were issued with an original issue discount of 99.0 and are otherwise on terms identical to the existing Term B-7 Loans and are fungible with the existing Term B-7 Loans.
Current report
On July 25, 2025, we entered into an amendment to the ABL Line of Credit in order to, among other things, (i) increase the aggregate principal amount of the commitments from $900.0 million to $1,000.0 million and (ii) extend the maturity date of the commitments and loans from December 22, 2026 to July 25, 2030.
Current report
At August 2, 2025, we had $945.7 million available under the ABL Line of Credit. Average borrowings during the six month period ended August 2, 2025 amounted to $40.4 million at an average interest rate of 5.5%.
Current report
During the second quarter of Fiscal 2025, we entered into a $200.0 million interest rate swap agreement with a fixed interest rate of 3.76%. On the same date, we also entered into a $100.0 million interest rate swap agreement with a fixed interest rate of 3.73%.
Removed paragraphs (7)
Previous report
Relates to the final settlements of certain litigation matters.
Previous report
Relates to the final settlements of certain litigation matters.
Previous report
Product sourcing costs, which are included in selling, general and administrative expenses, increased approximately 10 basis points as a percentage of net sales. Supply chain leverage driven by productivity improvements and the timing of receipts was more than offset by increased asset protection investments.
Previous report
Other income - net
Previous report
Other income - net decreased $0.6 million to $10.2 million during the first quarter of Fiscal 2025, compared to the same period in the prior year. The decrease was primarily driven by decreased interest income, partially offset by gain on fixed assets related to a sale leaseback as well as a legal settlement gain.
Previous report
Interest expense improved $0.8 million during the first quarter of Fiscal 2025 to $15.8 million, compared to the same period in the prior year. This improvement was primarily driven by lower interest rates, partially offset by a higher average balance due to the extension and upsize of the Term Loan Facility during the third quarter of Fiscal 2024.
Previous report
At May 3, 2025, we had $748.2 million available under the ABL Line of Credit and borrowings of $100.0 million.
Reworded paragraphs (47)
Previous wording
We are a nationally recognized off-price retailer. We opened our first store in Burlington, New Jersey in 1972, selling primarily coats and outerwear. Since then, we have expanded our store base to 1,115 stores as of May 3, 2025 in 46 states, Washington D.C. and Puerto Rico. We have diversified our product categories by offering an extensive selection of in-season, high-quality branded merchandise at up to 60% off other retailers’ prices, including: fashion-focused women’s apparel, menswear, youth apparel, baby, beauty, footwear, accessories, home, toys, gifts and coats.
Current wording
We are a nationally recognized off-price retailer of high-quality, branded merchandise at everyday low prices. We opened our first store in Burlington, New Jersey in 1972, selling primarily coats and outerwear. Since then, we have expanded our store base to 1,138 stores as of August 2, 2025 in 46 states, Washington D.C. and Puerto Rico. We have diversified our product categories by offering an extensive selection of in-season, high-quality branded merchandise at up to 60% off other retailers’ prices, including: fashion-focused women’s apparel, menswear, youth apparel, baby, beauty, footwear, accessories, home, toys, gifts and coats.
Previous wording
Fiscal 2025 is defined as the 52-week year ended January 31, 2026. Fiscal 2024 is defined as the 52-week year ending February 1, 2025. The first quarter of Fiscal 2025 and Fiscal 2024 each consist of 13 weeks.
Current wording
Fiscal 2025 is defined as the 52-week year ended January 31, 2026. Fiscal 2024 is defined as the 52-week year ending February 1, 2025. The first and second quarters of Fiscal 2025 and Fiscal 2024 each consist of 13 weeks.
Previous wording
During the three month period ended May 3, 2025, we opened 14 new stores, inclusive of four relocations, and permanently closed three stores, exclusive of the aforementioned relocations, bringing our store count as of May 3, 2025 to 1,115 stores.
Current wording
During the six month period ended August 2, 2025, we opened 44 new stores, inclusive of eight relocations, and permanently closed six stores, exclusive of the aforementioned relocations, bringing our store count as of August 2, 2025 to 1,138 stores.
Previous wording
A broad, protracted slowdown or downturn in the U.S. economy, an extended period of high unemployment or inflation rates, an uncertain domestic or global economic outlook or a financial crisis could adversely affect consumer spending habits resulting in lower net sales and profits than expected on a quarterly or annual basis. Conversely, if inflation continues to decline, it could benefit our core customers who have been impacted by the higher cost of living since early 2022, and if economic growth slows, it could cause moderate and higher-income shoppers to become more value conscious. Either of these developments, if they occur, would be expected to improve our business. Consumer confidence is also affected by the domestic and international political situation. Our financial condition and operations could be impacted by changes in government regulations, initiatives or programs in areas including, but not limited to, trade and tariffs, taxes, healthcare, and immigration. In addition, trade and tariff regulations have had and are expected to continue to have an indirect impact on consumer prices. We will continue to monitor changes in tariff policy and the impact of these changes on our industry and the economy and seek to adjust to these changes as efficiently as possible. The outbreak or escalation of war, or the occurrence of terrorist acts or other hostilities in or affecting the U.S., or public health issues such as pandemics or epidemics, could lead to a decrease in spending by consumers. In addition, natural disasters, public health issues, industrial accidents and acts of war or conflicts in various parts of the world (such as the conflict in Ukraine or the conflict in the Middle East), could have the effect of disrupting supplies and raising prices globally which, in turn, may have adverse effects on the world and U.S. economies and lead to a downturn in consumer confidence and spending.
Current wording
A broad, protracted slowdown or downturn in the U.S. economy, an extended period of high unemployment or inflation rates, an uncertain domestic or global economic outlook or a financial crisis could adversely affect consumer spending habits resulting in lower net sales and profits than expected on a quarterly or annual basis. Conversely, if inflation declines, it could benefit our core customers who have been impacted by higher cost of living, and if economic growth slows, it could cause moderate and higher-income shoppers to become more value conscious. Either of these developments, if they occur, would be expected to improve our business. Consumer confidence is also affected by the domestic and international political situation. Our financial condition and operations could be impacted by changes in government regulations, initiatives or programs in areas including, but not limited to, trade and tariffs, taxes, healthcare, and immigration. In addition, trade and tariff regulations have had and are expected to continue to have an indirect impact on consumer prices. We will continue to monitor changes in tariff policy and the impact of these changes on our industry and the economy and seek to adjust to these changes as efficiently as possible. The outbreak or escalation of war, or the occurrence of terrorist acts or other hostilities in or affecting the U.S., or public health issues such as pandemics or epidemics, could lead to a decrease in spending by consumers. In addition, natural disasters, public health issues, industrial accidents and acts of war or conflicts in various parts of the world (such as the conflict in Ukraine or the conflict in the Middle East), could have the effect of disrupting supplies and raising prices globally which, in turn, may have adverse effects on the world and U.S. economies and lead to a downturn in consumer confidence and spending.
Previous wording
Net income. We earned net income of $100.8 million during the three month period ended May 3, 2025 compared with $78.5 million during the three month period ended May 4, 2024. This increase was primarily driven by higher sales, as well as increased gross margin rate. Refer to the section below entitled “Results of Operations” for further explanation.
Current wording
Net income. We earned net income of $94.2 million during the three month period ended August 2, 2025 compared with net income of $73.8 million during the three month period ended August 3, 2024. We earned net income of $195.0 million during the six month period ended August 2, 2025 compared with a net income of $152.3 million during the six month period ended August 3, 2024. These increases were primarily driven by higher sales, as well as increased gross margin rate. Refer to the section below entitled “Results of Operations” for further explanation.
Previous wording
During the three months ended May 3, 2025, Adjusted Net Income increased $15.8 million to $102.6 million compared to the same period in the prior year. This increase was primarily driven by higher sales, as well as increased gross margin rate. Refer to the section below entitled “Results of Operations” for further explanation.
Current wording
During the three and six months ended August 2, 2025, Adjusted Net Income increased $24.3 million to $101.8 million and increased $40.0 million to $204.3 million, respectively, compared to the same periods in the prior year. These increases were primarily driven by higher sales, as well as increased gross margin rate. Refer to the section below entitled “Results of Operations” for further explanation.
Previous wording
The following table shows our reconciliation of net income to Adjusted Net Income for the three months ended May 3, 2025 compared with the three months ended May 4, 2024:
Current wording
The following table shows our reconciliation of net income to Adjusted Net Income for the three and six months ended August 2, 2025 compared with the three and six months ended August 3, 2024:
Previous wording
During the three months ended May 3, 2025, Adjusted EBIT increased $16.9 million to $146.3 million compared to the same period in the prior year. Adjusted EBITDA increased $26.7 million to $238.1 million compared to the same period in the prior year. These increases were primarily driven by higher sales, as well as increased gross margin rate. Refer to the section below entitled “Results of Operations” for further explanation.
Current wording
During the three and six months ended August 2, 2025, Adjusted EBIT increased $35.7 million to $150.9 million and increased $52.6 million to $297.2 million, respectively, compared to the same periods in the prior year. During the three and six months ended August 2, 2025, Adjusted EBITDA increased $43.9 million to $245.7 million and increased $70.6 million to $483.8 million, respectively, compared to the same periods in the prior year. These increases were primarily driven by higher sales, as well as increased gross margin rate. Refer to the section below entitled “Results of Operations” for further explanation.
Previous wording
The following table shows our reconciliation of net income to Adjusted EBIT and Adjusted EBITDA for the three months ended May 3, 2025 compared with the three months ended May 4, 2024:
Current wording
The following table shows our reconciliation of net income to Adjusted EBIT and Adjusted EBITDA for the three and six months ended August 2, 2025 compared with the three and six months ended August 3, 2024:
Previous wording
Gross margin as a percentage of net sales increased to 43.8% during the three month period ended May 3, 2025, compared with 43.5% during three month period ended May 4, 2024, driven primarily by improved merchandise margins and freight costs.
Current wording
Gross margin as a percentage of net sales increased to 43.7% during the three month period ended August 2, 2025, compared with 42.8% during three month period ended August 3, 2024. Gross margin as a percentage of net sales increased to 43.8% during the six months ended August 2, 2025, compared with 43.2% during the six months ended August 3, 2024. These improvements were driven primarily by increased merchandise margin and decreased freight costs. The improvements in merchandise margin were driven by lower shortage and reduced markdowns, which more than offset lower markup due to tariffs. Product sourcing costs, which are included in selling, general and administrative expenses, were flat as a percentage of net sales during the three and six month periods ended August 2, 2025, compared with the three and six month periods ended August 3, 2024.
Previous wording
Inventory. Inventory at May 3, 2025 increased to $1,315.3 million compared with $1,140.8 million at May 4, 2024. The increase was attributable primarily to an increase in reserve inventory and 94 net new stores opened since the end of the first quarter of Fiscal 2024. Comparable store inventories decreased 8% compared to the first quarter of Fiscal 2024.
Current wording
Inventory. Inventory at August 2, 2025 increased to $1,414.8 million compared with $1,222.7 million at August 3, 2024. The increase was attributable primarily to an increase in reserve inventory and 81 net new stores opened since the end of the second quarter of Fiscal 2024. Comparable store inventories decreased 8% compared to the second quarter of Fiscal 2024.
Previous wording
Reserve inventory includes all inventory that is being stored for release either later in the season, or in a subsequent season. We intend to use our reserve merchandise to effectively chase sales trends. Reserve inventory was 48% of total inventory at the end of the first quarter of Fiscal 2025 compared to 40% at the end of the first quarter of Fiscal 2024.
Current wording
Reserve inventory includes all inventory that is being stored for release either later in the season, or in a subsequent season. We intend to use our reserve merchandise to effectively chase sales trends. Reserve inventory was 50% of total inventory at the end of the second quarter of Fiscal 2025 compared to 41% at the end of the second quarter of Fiscal 2024.
Previous wording
Liquidity. Liquidity measures our ability to generate cash. Management measures liquidity through cash flow, which is the measure of cash generated from or used in operating, financing, and investing activities. Cash and cash equivalents decreased $623.6 million during the three months ended May 3, 2025, compared with a decrease of $183.0 million during the three months ended May 4, 2024. On May 3, 2025, we also had $748.2 million available under the ABL Line of Credit with $100.0 million of borrowings. Refer to the section below entitled “Liquidity and Capital Resources” for further explanation.
Current wording
Liquidity. Liquidity measures our ability to generate cash. Management measures liquidity through cash flow, which is the measure of cash generated from or used in operating, financing, and investing activities. Cash and cash equivalents decreased $247.1 million during the six months ended August 2, 2025, compared with a decrease of $265.4 million during the six months ended August 3, 2024. Refer to the section below entitled “Liquidity and Capital Resources” for further explanation.
Previous wording
The following table sets forth certain items in the Condensed Consolidated Statements of Income as a percentage of net sales for the three months ended May 3, 2025 and the three months ended May 4, 2024.
Current wording
The following table sets forth certain items in the Condensed Consolidated Statements of Income as a percentage of net sales for the three and six months ended August 2, 2025 and the three and six months ended August 3, 2024.
Previous wording
Net sales improved approximately $142.8 million, or 6.1%, to $2,500.1 million during the first quarter of Fiscal 2025, primarily driven by net sales from our 94 net new stores opened since the end of the first quarter of Fiscal 2024. Comparable store sales were flat.
Current wording
Net sales improved $239.8 million, or 9.7%, to $2,701.0 million during the second quarter of Fiscal 2025, primarily driven by net sales from our 81 net new stores opened since the end of the second quarter of Fiscal 2024 as well as an increase of 5% in comparable stores sales during the three month period ended August 2, 2025.
Previous wording
Cost of sales as a percentage of net sales decreased to 56.2% during the first quarter of Fiscal 2025, compared to 56.5% during the first quarter of Fiscal 2024. This decrease was primarily driven by improved merchandise margins and freight costs. On a dollar basis, cost of sales increased $74.4 million, or 5.6%, primarily driven by our overall increase in sales.
Current wording
Cost of sales as a percentage of net sales decreased to 56.3% during the second quarter of Fiscal 2025, compared to 57.2% during the second quarter of Fiscal 2024. This improvement was driven primarily by increased merchandise margin and decreased freight costs. The improvement in merchandise margin was driven by lower shortage and reduced markdowns, which more than offset lower markup due to tariffs. On a dollar basis, cost of sales increased $111.5 million, or 7.9%, primarily driven by our overall increase in sales.
Previous wording
Selling, general and administrative expenses as a percentage of net sales decreased to 34.7% during the first quarter of Fiscal 2025, compared to 35.0% during the first quarter of Fiscal 2024. The decrease was primarily driven by lower incentive compensation and store payroll costs. On a dollar basis, selling, general and administrative expenses increased by $42.8 million, or 5.2%, to $868.1 million during the first quarter of Fiscal 2025. The increase was primarily driven by our 94 net new stores opened since the end of the first quarter of Fiscal 2024.
Current wording
Selling, general and administrative expenses as a percentage of net sales increased to 35.2% during the second quarter of Fiscal 2025, compared to 35.1% during the second quarter of Fiscal 2024. The increase was primarily driven by an increase in incentive compensation, partially offset by improvement in store payroll costs. On a dollar basis, selling, general and administrative expenses increased by $86.0 million, or 9.9%, to $949.9 million during the second quarter of Fiscal 2025. The increase was primarily driven by our 81 net new stores opened since the end of the second quarter of Fiscal 2024.
Previous wording
During the first quarter of Fiscal 2025 and Fiscal 2024, the Company incurred costs related to leases acquired through bankruptcy proceedings. The acquisition of these leases resulted in $5.8 million and $6.0 million of pre-opening costs that are recorded in the line item, “Selling, general and administrative expenses” in our Condensed Consolidated Statements of Income during the first quarter of Fiscal 2025 and Fiscal 2024, respectively.
Current wording
During the second quarter of Fiscal 2025 and Fiscal 2024, the Company incurred costs related to leases acquired through bankruptcy proceedings. The acquisition of these leases resulted in $10.8 million and $3.3 million of pre-opening costs that are recorded in the line item, “Selling, general and administrative expenses” in our Condensed Consolidated Statements of Income during the second quarter of Fiscal 2025 and Fiscal 2024, respectively.
Previous wording
Depreciation and amortization expense amounted to $91.8 million during the first quarter of Fiscal 2025 compared with $82.0 million during the first quarter of Fiscal 2024. The increase in depreciation and amortization expense was primarily driven by capital expenditures related to our supply chain, as well as new and non-comparable stores.
Current wording
Depreciation and amortization expense amounted to $94.8 million during the second quarter of Fiscal 2025 compared with $86.7 million during the second quarter of Fiscal 2024. The increase in depreciation and amortization expense was primarily driven by new and non-comparable stores, as well as capital expenditures related to our supply chain.
Previous wording
The average interest rate on the Term Loan Facility was 6.1% and 7.4% for the first quarter of Fiscal 2025 and the first quarter of Fiscal 2024, respectively. The average balance on the Term Loan Facility, excluding the original issue discount, was $1,245.7 million and $936.5 million for the first quarter of Fiscal 2025 and the first quarter of Fiscal 2024, respectively.
Current wording
The average interest rate on the Term Loan Facility was 6.1% and 7.4% for the second quarter of Fiscal 2025 and the second quarter of Fiscal 2024, respectively. The average balance on the Term Loan Facility, excluding the original issue discount, was $1,527.9 million and $934.0 million for the second quarter of Fiscal 2025 and the second quarter of Fiscal 2024, respectively.
Previous wording
The average interest rate on the ABL Line of Credit was 5.5% for the first quarter of Fiscal 2025. The average balance on the ABL Line of Credit was $23.6 million for the first quarter of Fiscal 2025. There were no borrowings under the ABL Line of Credit during the three month period ended May 4, 2024.
Current wording
The average interest rate on the ABL Line of Credit was 5.5% for the second quarter of Fiscal 2025. The average balance on the ABL Line of Credit was $57.1 million for the second quarter of Fiscal 2025. There were no borrowings under the ABL Line of Credit during the second quarter of Fiscal 2024.
Previous wording
Income tax expense was $32.0 million during the first quarter of Fiscal 2025 compared with income tax expense of $31.1 million during the first quarter of Fiscal 2024. The effective tax rate for the first quarter of Fiscal 2025 was 24.1% compared with 28.4% during the first quarter of Fiscal 2024. The increase in income tax expense is primarily driven by higher pre-tax income, while the decrease in the effective tax rate is mainly attributable to the tax benefit from stock-based compensation.
Current wording
Income tax expense was $33.1 million during the second quarter of Fiscal 2025 compared with income tax expense of $25.9 million during the second quarter of Fiscal 2024. The effective tax rate for the second quarter of Fiscal 2025 was 26.0% compared with 26.0% during the second quarter of Fiscal 2024. The increase in tax expense is driven by higher pre-tax income while the effective tax rate remained consistent with prior year.
Previous wording
At the end of each interim period we are required to determine the best estimate of our annual effective tax rate and then apply that rate in providing for income taxes on a current year-to-date (interim period) basis. Use of this methodology during the first quarter of Fiscal 2025 resulted in an annual effective income tax rate of approximately 26% (before discrete items) as our best estimate.
Current wording
At the end of each interim period we are required to determine the best estimate of our annual effective tax rate and then apply that rate in providing for income taxes on a current year-to-date (interim period) basis. Use of this methodology during the second quarter of Fiscal 2025 resulted in an annual effective income tax rate of approximately 26% (before discrete items) as our best estimate.
Previous wording
We earned net income of $100.8 million for the first quarter of Fiscal 2025 compared with $78.5 million for the first quarter of Fiscal 2024. This increase was primarily driven by higher sales, as well as increased gross margin rate. Net income included $4.3 million of expense, net of income taxes, for both the first quarter of Fiscal 2025 and Fiscal 2024 related to the bankruptcy acquired leases.
Current wording
We earned net income of $94.2 million for the second quarter of Fiscal 2025 compared with $73.8 million for the second quarter of Fiscal 2024. This increase was primarily driven by higher sales, as well as increased gross margin rate. Net income included $8.1 million and $2.5 million of expense, net of income taxes, for the second quarter of Fiscal 2025 and Fiscal 2024, respectively, related to the bankruptcy acquired leases.
Previous wording
Impairment charges on long-lived assets were $0.5 million during the first quarter of Fiscal 2025, related to unrecoverable assets at three underperforming stores and three relocating stores, and lease asset impairment charges related to one of those stores. Impairment charges on long-lived assets were $8.2 million during the first quarter of Fiscal 2024, primarily related to one owned store selling below carrying value in a sale-leaseback transaction.
Current wording
Impairment charges on long-lived assets were $2.1 million during the six month period ended August 2, 2025, related to unrecoverable store assets. Impairment charges on long-lived assets were $8.2 million during the six month period ended August 3, 2024, related to a sale-leaseback transaction at one owned store sold below net carrying value.
Previous wording
Cash Flow for the Three Month Period Ended May 3, 2025 Compared With the Three Month Period Ended May 4, 2024
Current wording
Cash Flow for the Six Month Period Ended August 2, 2025 Compared With the Six Month Period Ended August 3, 2024
Previous wording
We used $623.6 million of cash during the three month period ended May 3, 2025 compared with $183.0 million during the three month period ended May 4, 2024.
Current wording
We used $247.1 million of cash during the six month period ended August 2, 2025 compared with a use of $265.4 million during the six month period ended August 3, 2024.
Previous wording
Net cash used in operating activities amounted to $28.9 million during the three month period ended May 3, 2025, compared with net cash provided of $49.4 million during the three month period ended May 4, 2024. The decrease in our operating cash flows was primarily driven by changes in working capital, which more than offset improved net income.
Current wording
Net cash provided by operating activities amounted to $150.5 million during the six month period ended August 2, 2025, compared with $209.8 million during the six month period ended August 3, 2024. The decrease in our operating cash flows was primarily driven by the impact of changes in working capital, partially offset by improved sales and gross margin.
Previous wording
Net cash used in investing activities was $412.7 million during the three month period ended May 3, 2025 compared with $165.5 million during the three month period ended May 4, 2024. This change was primarily the result of an increase in capital expenditures related to supply chain costs from the purchase and build-out of distribution centers as well as increased store openings.
Current wording
Net cash used in investing activities was $581.4 million during the six month period ended August 2, 2025 compared with $362.3 million during the six month period ended August 3, 2024. This change was primarily the result of an increase in capital expenditures related to supply chain costs from the purchase and build-out of distribution centers as well as increased store openings.
Previous wording
Net cash used in financing activities was $182.0 million during the three month period ended May 3, 2025 compared with $66.9 million during the three month period ended May 4, 2024. This change was primarily driven by settlement of the 2025 Convertible Notes and an increase in treasury stock repurchases, partially offset by ABL borrowings.
Current wording
Net cash provided by financing activities was $183.8 million during the six month period ended August 2, 2025 compared with net cash used of $113.0 million during the six month period ended August 3, 2024. This change was primarily driven by the upsize of the Term Loan Facility during the second quarter of Fiscal 2025, partially offset by settlement of the 2025 Convertible Notes during the first quarter of Fiscal 2025.
Previous wording
Changes in working capital also impact our cash flows. Working capital equals current assets minus current liabilities. We had working capital at May 3, 2025 of $115.3 million compared with $140.8 million at May 4, 2024. The decrease in working capital was primarily due to decreased cash balance, partially offset by decreased current maturities of long term debt related to the settlement of the 2025 Convertible Notes as well as increased inventory. We had working capital at February 1, 2025 of $356.3 million.
Current wording
Changes in working capital also impact our cash flows. Working capital equals current assets minus current liabilities. We had working capital at August 2, 2025 of $480.3 million compared with $79.3 million at August 3, 2024. The increase in working capital was primarily due to increased inventory and decreased current maturities of long term debt related to the settlement of the 2025 Convertible Notes. We had working capital at February 1, 2025 of $356.3 million.
Previous wording
For the three month period ended May 3, 2025, capital expenditures, net of $7.8 million of landlord allowances, amounted to $412.2 million (inclusive of accrued capital expenditures).
Current wording
For the six month period ended August 2, 2025, capital expenditures, net of $13.6 million of landlord allowances, amounted to $639.9 million (inclusive of accrued capital expenditures).
Previous wording
On August 15, 2023, our Board of Directors authorized the repurchase of up to $500 million of common stock, which is authorized to be executed through August 2025.
Current wording
On August 15, 2023, our Board of Directors authorized the repurchase of up to $500.0 million of common stock, which is authorized to be executed through August 15, 2025.
Previous wording
Subsequent to the end of the first quarter of Fiscal 2025, our Board of Directors authorized the repurchase of up to an additional $500.0 million of common stock, which is authorized to be executed through May 2027. This was authorized on May 20, 2025.
Current wording
On May 20, 2025, our Board of Directors authorized the repurchase of up to an additional $500.0 million of common stock, which is authorized to be executed through May 20, 2027.
Previous wording
During the first quarter of Fiscal 2025, we repurchased 445,285 shares of common stock for $105.2 million under these repurchase programs. As of May 3, 2025, we had $157.9 million remaining under our share repurchase authorization.
Current wording
During the six month period ended August 2, 2025, we repurchased 547,759 shares of common stock for $131.1 million under these repurchase programs. As of August 2, 2025, we had $632.1 million remaining under our share repurchase authorization.
Previous wording
During the three month period ended May 3, 2025, we opened 14 new stores, inclusive of four relocations, and closed three stores, exclusive of the aforementioned relocations, bringing our store count as of May 3, 2025 to 1,115 stores. During Fiscal 2025, we plan to open approximately 100 net new stores.
Current wording
During the six month period ended August 2, 2025, we opened 44 new stores, inclusive of eight relocations, and closed six stores, exclusive of the aforementioned relocations, bringing our store count as of August 2, 2025 to 1,138 stores. During Fiscal 2025, we plan to open 100 net new stores.
Previous wording
As of May 3, 2025, our obligations, inclusive of original issue discount, include $1,236.1 million under our Term Loan Facility, $297.1 million of 2027 Convertible Notes, and outstanding borrowings on our ABL Line of Credit of $100.0 million. Our debt obligations also include $24.4 million of finance lease obligations as of May 3, 2025.
Current wording
As of August 2, 2025, our obligations, inclusive of original issue discount, include $1,727.1 million under our Term Loan Facility, $297.1 million of our 2027 Convertible Notes and no outstanding borrowings on our ABL Line of Credit. Our debt obligations also include $23.9 million of finance lease obligations as of August 2, 2025.
Previous wording
BCFWC and certain of its subsidiaries and holding companies are party to a Credit Agreement (as amended, supplemented and otherwise modified, the Term Loan Facility) that provides for term loans in an aggregate principal amount as of May 3, 2025 of $1,243.8 million maturing on September 24, 2031.
Current wording
BCFWC and certain of its subsidiaries and holding companies are party to a Credit Agreement (as amended, supplemented and otherwise modified, the Term Loan Facility) that provides for term loans in an aggregate principal amount as of August 2, 2025 of $1,739.4 million maturing on September 24, 2031.
Previous wording
On September 24, 2024, we entered into an amendment to the Term Loan Facility dated as of February 24, 2011 (the "Amendment"), which among other things, (i) refinanced the outstanding $933 million principal amount of Term B-6 Loans with Term B-7 Loans in an aggregate principal amount of $1,250 million, which includes incremental term loans in an aggregate principal amount of $317 million, (ii) extended the maturity date from June 24, 2028 to September 24, 2031, and (iii) reduced the interest rate margins applicable to our term loan facility from 1.00% to 0.75%, in the case of prime rate loans, and from 2.00% to 1.75%, in the case of SOFR loans, with a 0.00% SOFR floor, and removed the SOFR adjustment. The Term B-7 Loans were issued with an original issue discount of 99.5.
Current wording
On September 24, 2024, we entered into an amendment to the Term Loan Facility dated as of February 24, 2011 (the "Amendment"), which among other things, (i) refinanced the outstanding $933.0 million principal amount of Term B-6 Loans with Term B-7 Loans in an aggregate principal amount of $1,250.0 million, which includes incremental term loans in an aggregate principal amount of $317.0 million, (ii) extended the maturity date from June 24, 2028 to September 24, 2031, and (iii) reduced the interest rate margins applicable to our term loan facility from 1.00% to 0.75%, in the case of prime rate loans, and from 2.00% to 1.75%, in the case of SOFR loans, with a 0.00% SOFR floor, and removed the SOFR adjustment. The Term B-7 Loans were issued with an original issue discount of 99.5.
Previous wording
BCFWC and certain of its subsidiaries and holding companies are party to a Second Amended and Restated Credit Agreement (as amended, supplemented and otherwise modified, the ABL Line of Credit) that provides for $900.0 million of revolving commitments (subject to a borrowing base limitation) maturing on December 22, 2026, and, subject to the satisfaction of certain conditions, BCFWC can increase the aggregate amount of commitments up to $1,200 million. The interest rate margin applicable under the ABL Line of Credit is 1.125% to 1.375% in the case of a daily SOFR rate or a term SOFR rate (in each case, plus a credit spread adjustment of 0.10%), and 0.125% to 0.375% in the case of a prime rate, depending on the average daily availability of the lesser of (a) the total commitments or (b) the borrowing base. The ABL Line of Credit is collateralized by a first priority lien on
Current wording
BCFWC and certain of its subsidiaries and holding companies are party to a Second Amended and Restated Credit Agreement (as amended, supplemented and otherwise modified, the ABL Line of Credit) that provides for $1,000.0 million of revolving commitments (subject to a borrowing base limitation) maturing on July 25, 2030, and, subject to the satisfaction of certain conditions, BCFWC can increase the aggregate amount of commitments up to $1,200.0 million an amount not to exceed the sum of (i) the greater of (x) $300.0 million and (y) the amount by which the Borrowing Base exceeds the aggregate Commitments, plus (iii) the amount of all permanent reductions in commitments after July 25, 2025. The interest rate margin applicable under the ABL Line of Credit is 1.125% to 1.375% in the case of a daily SOFR rate or a term SOFR rate (in each case, plus a credit spread adjustment of 0.10%), and 0.125% to 0.375% in the case of a prime rate, depending on the average daily availability of the lesser of (a) the total commitments or (b) the borrowing base. The ABL Line of Credit is collateralized by a first priority lien on BCFWC’s and each guarantor's inventory, receivables, bank accounts, and certain related assets and proceeds thereof (subject to certain exceptions), and a second priority lien on BCFWC’s and each guarantor's other assets and proceeds thereof (other than real estate and subject to certain exceptions)
Showing the first 40 of 47 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
During the six month periods ended August 2, 2025 and August 3, 2024, the Company incurred costs related to leases acquired through bankruptcy proceedings. The acquisition of these leases resulted in $16.6 million and $9.4 million of pre-opening costs that are recorded in the line item, “Selling, general and administrative expenses” in our Condensed Consolidated Statements of Income during the six month periods ended August 2, 2025 and August 3, 2024, respectively.
Current report — wording carried from elsewhere
Depreciation and amortization expense amounted to $186.6 million during the six month period ended August 2, 2025 compared with $168.6 million during the six month period ended August 3, 2024. The increase in depreciation and amortization expense was primarily driven by capital expenditures related to our supply chain, as well as new and non-comparable stores.
Current report — wording carried from elsewhere
The recoverability assessment related to these store-level assets requires various judgments and estimates, including estimates related to future revenues, gross margin rates, store expenses and other assumptions. We base these estimates upon our past and expected future performance. We believe our estimates are appropriate in light of current market conditions. However, future impairment charges could be required if we do not achieve our current revenue or cash flow projections for each store. Refer to Note 6, “Fair Value Measurements,” for further discussion regarding impairment charges.
Current report — wording carried from elsewhere
The average interest rate on the ABL Line of Credit was 5.5% for the six month period ended August 2, 2025. The average balance on the ABL Line of Credit was $40.4 million for the six month period ended August 2, 2025. There were no borrowings under the ABL Line of Credit during the six month period ended August 3, 2024.
Current report — wording carried from elsewhere
At the end of each interim period we are required to determine the best estimate of our annual effective tax rate and then apply that rate in providing for income taxes on a current year-to-date (interim period) basis. Use of this methodology during the six month period ended August 2, 2025 resulted in an annual effective income tax rate of approximately 26% (before discrete items) as our best estimate.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The Term Loan Facility is collateralized by a first lien on BCFWC’s and each guarantor’s equity interests, equipment, intellectual property, and certain favorable leases and real estate, and certain related assets and proceeds thereof (subject to certain exceptions), and a second lien on BCFWC’s and each guarantor’s other assets and proceeds thereof (subject to certain exceptions).
Previous report — wording carried elsewhere
BCFWC’s and each guarantor's inventory, receivables, bank accounts, and certain related assets and proceeds thereof (subject to certain exceptions), and a second priority lien on BCFWC’s and each guarantor's other assets and proceeds thereof (other than real estate and subject to certain exceptions).