Burlington Stores, Inc. (BURL): Business Model Canvas [Dec-2025 Updated]

You're trying to get a clear picture of how Burlington Stores, Inc. is turning its aggressive expansion-planning for 104 net new stores in Fiscal 2025-into actual revenue, aiming for sales between $11.38 billion and $11.58 billion. Honestly, after two decades analyzing retail, this company's model hinges on that off-price magic: getting branded goods at deep discounts, sometimes up to 60% off, and moving them fast through a lean, physical footprint. To see the engine behind that growth, I've mapped out their entire operational structure across the nine blocks of the Business Model Canvas, focusing on the efficiency gains from their Burlington 2.0 initiatives.

Burlington Stores, Inc. (BURL) - Canvas Business Model: Key Partnerships

Opportunistic suppliers providing excess inventory at deep discounts

Burlington Stores, Inc. relies on securing merchandise through opportunistic buying, which is evident in the balance sheet composition. As of the end of the second quarter of Fiscal 2025, 50% of total inventory was classified as reserve inventory, up from 41% at the end of the second quarter of Fiscal 2024. This reserve inventory is largely composed of merchandise purchased opportunistically. For the full Fiscal 2024, the Cost of Sales was \$6,025.3 million, which represented 56.8% of net sales. In the first quarter of Fiscal 2025, Product Sourcing Costs, as a percentage of sales, increased by 10 basis points year-over-year.

The company's strategy involves building up this opportunistic stock to capitalize on future buying opportunities.

Commercial real estate landlords for smaller, more efficient store footprints

The partnership with commercial real estate landlords supports a strategy of smaller, more efficient store footprints. The company is cutting store sizes by nearly 80%, with a typical new store spanning just 18,000 square feet, compared to the average size of 27,000 square feet for stores opened in Fiscal 2024. As of the first quarter of Fiscal 2025, Burlington operated 1,115 stores across 46 states, Washington D.C., and Puerto Rico. Burlington Stores plans to open approximately 100 net new stores during Fiscal 2025, with a long-term target of operating 2,000 stores. Total opened retail space reached 88 million square feet as of November 2025.

The company is focusing on better real estate in high-traffic areas despite potentially higher rents.

• Long-term store target: 2,000 locations.
• Net new stores planned for Fiscal 2025: Approximately 100.
• Store size reduction: Nearly 80% cut from older formats.
• Total U.S. opened retail space (as of Nov 2025): 88 million square feet.

Logistics and freight carriers for a high-velocity supply chain

Investment in the supply chain is a key focus area for Burlington Stores, Inc. Capital expenditures, net of landlord allowances, are planned to be approximately \$950 million during Fiscal 2025, with a focus on supply chain improvements. In Fiscal 2024, the Gross Margin rate was 43.2%, which benefited from improved freight costs. For the second quarter of Fiscal 2025, the Gross Margin rate improved by 90 basis points to 43.7%, also driven by improved freight expenses.

These investments aim to maintain operational flexibility and cost efficiency across the network of 1,115 stores.

Charitable organizations like YouthBuild USA for community engagement

Community engagement is formalized through partnerships with nonprofits like YouthBuild Global. During its third annual in-store fundraising campaign, Burlington Stores raised over \$1.4 million to benefit YouthBuild Global and its network. YouthBuild Global partners with more than 320 YouthBuild programs around the world. The second annual campaign in 2024 raised over \$1.3 million for YouthBuild USA.

The company's community giving approach focuses on impacting local store communities.

• Funds raised for YouthBuild Global (3rd campaign): Over \$1.4 million.
• Number of local YouthBuild programs supported: More than 320.
• Funds raised for YouthBuild USA (2nd campaign): Over \$1.3 million.

Burlington Stores, Inc. (BURL) - Canvas Business Model: Key Activities

You're planning your next strategic review, so let's look at the hard numbers driving Burlington Stores, Inc.'s key activities for fiscal year 2025. The focus remains squarely on aggressive growth married to disciplined operational execution.

Opportunistic, off-price buying and inventory liquidation

The core activity is securing desirable, first-quality merchandise at steep discounts. This buying strategy directly fuels the off-price value proposition. For the fiscal year ending January 31, 2025, total revenue reached $10.63 billion. The company is projecting total sales growth for the full fiscal year 2025 to be in the range of 7% to 8%. Profitability from this buying is reflected in the gross margin rate, which stood at 43.8% for the first quarter of fiscal 2025.

Aggressive store expansion, planning 104 net new stores in FY 2025

Expanding the physical footprint is a major activity, capitalizing on real estate opportunities, including leases acquired from bankruptcies like Joann Fabrics. Burlington Stores, Inc. has targeted opening 104 net new stores in fiscal year 2025. This is an increase from the earlier guidance of approximately 100 net new stores. Looking ahead, the plan accelerates to at least 110 net new stores in fiscal 2026. As of early 2025, the retailer operated 1,103 stores across 46 states, Washington, D.C., and Puerto Rico.

Executing the Burlington 2.0 strategy for operational efficiency

Burlington 2.0 is the framework for driving better results from existing operations, focusing on merchandising, planning, and supply chain improvements. This is translating directly to the bottom line. For fiscal 2025, management raised the adjusted EBIT margin guidance to an expansion of 60 to 70 basis points, up from the initial 20 to 40 basis points estimate. In the third quarter of fiscal 2025, the adjusted EBIT margin hit 6.2%, marking a 60-basis point increase year-over-year.

Here's a quick look at the margin drivers under Burlington 2.0:

• Product sourcing costs improved by 40 basis points as a percentage of net sales.
• SG&A leveraged by 20 basis points compared with last year.
• Gross margin reached 44.2% in Q3 2025.

Managing a high-velocity, low-inventory supply chain

The off-price model demands a fast inventory turn to keep merchandise fresh and minimize holding costs. The Inventory Turnover ratio for the fiscal year ending January 31, 2025, was 4.82. The company uses a significant portion of inventory as a buffer for opportunistic buys, which they call Reserve inventory. At the end of the second quarter of Fiscal 2025, Reserve inventory was 50% of total inventory, up from 41% at the end of Q2 2024. Total merchandise inventories were $1,415 million at the end of Q2 2025, a 16% increase year-over-year, but comparable store inventories were down 8%.

You can see the interplay between inventory management and margin improvement here:

The Asset Turnover ratio, which measures sales generated per dollar of assets, was 1.21 for the fiscal year ending January 31, 2025. Finance: draft 13-week cash view by Friday.

Burlington Stores, Inc. (BURL) - Canvas Business Model: Key Resources

You need to see the hard assets and core capabilities Burlington Stores, Inc. relies on to execute its off-price strategy as of late 2025. Here are the concrete figures and locations that define those key resources.

The proprietary technology and buying expertise are less about a single balance sheet line item and more about operational capacity, which shows up in performance metrics. The Merchandising 2.0 system is explicitly cited as enabling flexibility and control over external volatility.

• Proprietary Merchandising 2.0 and supply chain technology systems
• Buying team operations centered in New Jersey, California, and New York buying offices

The buying team structure is supported by physical hubs in key commercial areas. For instance, the Assistant Buyer program involves time spent in the New Jersey headquarters and the New York buying office.

• Buying offices located in New York
• Corporate headquarters and buying support in New Jersey

The company is actively investing in its physical footprint, planning for continued expansion.

Burlington Stores, Inc. (BURL) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Burlington Stores, Inc. over other options. It all boils down to getting a lot for less, and making the shopping trip itself part of the fun.

Extreme value is the foundation. Burlington Stores, Inc. promises in-season, high-quality branded merchandise at up to 60% off other retailers' prices. This deep discount is a primary attraction for the value-conscious shopper. The company's gross margin rate in Q1 Fiscal 2025 was reported at 43.8%, showing they manage costs well to deliver these prices.

The shopping experience is intentionally designed around the 'treasure hunt'. This comes from constantly rotating inventory, meaning what you see today might be gone tomorrow. This dynamic inventory keeps customers returning frequently to see the latest opportunistic buys. For instance, in Q3 Fiscal 2025, same-store inventories were down 2% year-over-year, supporting the lean, fresh merchandise flow.

Burlington Stores, Inc. offers a broad assortment for the entire family, moving well beyond its historical focus. The product mix now includes extensive selections of women's ready-to-wear apparel, menswear, youth apparel, baby items, beauty products, footwear, accessories, home goods, toys, gifts, and coats. To be fair, outerwear, the original focus, now accounts for less than 5% of annual sales.

The physical footprint supports a faster, more targeted shopping trip through convenient, smaller-format stores. While the average size of stores opened during Fiscal 2024 was approximately 27,000 square feet, the typical new prototype store is closer to 25,000 square feet, with some reports noting a target of just 18 KSF for newer locations. This shift away from older, sprawling big-box formats is a deliberate strategy for efficiency. As of 2025, Burlington Stores, Inc. operates a network of 1,115 stores across the United States, with plans to open approximately 100 net new stores in Fiscal 2025 alone.

Here's a quick look at how the store footprint is evolving:

The breadth of product categories available is key to capturing more wallet share:

• Women's ready-to-wear apparel
• Menswear
• Youth apparel and baby products
• Beauty items
• Footwear and accessories
• Home goods, toys, and gifts

The commitment to value is also reflected in their financial guidance; for Fiscal Year 2025, Burlington projects total sales growth between 7% to 8%. This growth is expected to be supported by a projected 1% to 2% comparable store sales increase.

Burlington Stores, Inc. (BURL) - Canvas Business Model: Customer Relationships

You're looking at how Burlington Stores, Inc. interacts with the people who buy from them, which is central to their off-price model. It's all about high-volume transactions driven by the thrill of the find.

Transactional and self-service model in-store

The core relationship is transactional, meaning the focus is on the immediate purchase rather than deep, personalized consultation. This model supports a massive scale, which you can see in their physical footprint and sales figures. As of the third quarter ended November 1, 2025, Burlington Stores operated 1,211 locations. This scale is built on driving frequent, quick trips. For the full fiscal year 2025, the company projected total sales growth in the range of 7% to 8%. This growth relies heavily on getting customers in and out efficiently, especially given the off-price nature where inventory turns quickly.

The company's operational performance reflects this high-volume focus. For instance, in the second quarter of 2025, comparable store sales grew by 5%. Even with a more conservative forecast for the remainder of the year, the full-year comparable store sales growth expectation was set between 1% to 2%. This means that even modest growth in existing stores, when combined with aggressive expansion, drives significant top-line results.

Here's a quick look at some key metrics that frame the customer transaction environment as of late 2025:

Low-touch, high-volume interaction focused on quick checkout

The self-service nature necessitates a focus on transaction speed. While specific checkout time data isn't public, the strategy is clearly geared toward minimizing friction once a customer decides to buy. The store refresh initiative, called Store Experience 2.0, directly supports this by improving navigation. The new layout favors an open format with thoughtfully organized aisles. This design helps customers quickly locate departments and proceed to checkout, which is critical for a high-volume environment where the merchandise mix changes constantly.

The company's store expansion plans also speak to this volume focus. Burlington intends to open approximately 100 net new stores in fiscal 2025. These new locations, along with the refreshed ones, are designed to be more efficient, allowing more transactions to occur with less in-store labor dedicated to guidance and more focused on stocking and checkout support.

Loyalty programs and email marketing for deal alerts

Burlington Stores, Inc. drives repeat visits through alerts about their constantly changing assortment of deals, which is the primary mechanism replacing a traditional, points-based loyalty program for many shoppers. The off-price model relies on the customer's desire to check back frequently for new markdowns. Still, general retail data shows the power of formalizing these relationships. For example, 84% of consumers report being more likely to shop brands that have loyalty programs. Furthermore, customers enrolled in loyalty programs typically spend 12%-18% more than unenrolled customers.

Email marketing serves as the digital extension of the in-store treasure hunt. It's used to push alerts on new arrivals and special promotions, keeping the brand top-of-mind. To be fair, the success of this digital outreach is tied to the customer's perception of value; 90% of consumers say they are more likely to purchase more from companies that understand their buying preferences.

Refreshed in-store experience to enhance convenience and inspiration

The 'Store Experience 2.0' is a major investment in the physical relationship. As of August 2025, Burlington reported that more than 50% of its fleet of 1,115 stores had already been converted to the new format. The goal is to complete the transition for the remaining locations by the end of 2026.

The design elements are specifically aimed at improving the customer journey:

• Thoughtfully organized aisles for easier navigation.
• An open layout to enhance convenience.
• Bold signage to spark ideas and showcase trends.
• All future new stores will feature the updated branding and a smaller, more efficient layout.

The CEO noted that customer feedback on the redesigned stores has been overwhelmingly positive. To celebrate this rollout, the company hosted special events in 21 major markets from August 15-17, featuring sweepstakes and giveaways. This shows a direct, albeit temporary, effort to drive traffic and create excitement around the improved physical space.

Burlington Stores, Inc. (BURL) - Canvas Business Model: Channels

You're looking at how Burlington Stores, Inc. gets its product into the hands of customers, and honestly, it's still overwhelmingly about the physical box.

Primary channel: The core of the business is the physical off-price retail stores. As of mid-2025, Burlington Stores, Inc. operated a robust network of approximately 1,150 Burlington stores across the United States, covering 46 states, Washington D.C., and Puerto Rico. The company's strategy heavily favors this physical footprint, evidenced by plans to open approximately 100 net-new stores in fiscal year 2025.

This physical presence is geographically concentrated in key markets. Here's a look at the top states by store count as of July 2025:

The capital allocation clearly supports this physical focus; for instance, approximately $950 million in capital expenditures was planned for these 100 net new stores in fiscal year 2025.

Secondary channel: The corporate website, www.burlington.com, serves primarily as a support tool for the physical locations. You use it mainly for finding a store near you or getting basic company information.

Limited e-commerce presence: Burlington Stores, Inc. maintains a deliberate focus on the in-store experience over a broad digital sales channel. While competitors might push online sales hard, Burlington's strategy keeps capital investment weighted toward enhancing the brick-and-mortar treasure-hunt experience.

Digital marketing and social media: Digital efforts are geared toward pulling customers into the stores. For example, in the third quarter of fiscal 2025, comparable store sales grew by 1.0% year-over-year, showing the importance of driving foot traffic. The company uses its digital presence to support this traffic goal, which is critical given that total sales grew 7% year-over-year in Q3 2025.

The channel mix supports the overall value proposition:

• Physical stores offer the constantly changing assortment of branded goods at deep discounts.
• The store count reached over 1,100 locations by early 2025.
• The fall 2025 expansion included plans for 60 new locations across 26 states.
• The website functions as a store locator, not a primary revenue driver.

Finance: draft 13-week cash view by Friday.

Burlington Stores, Inc. (BURL) - Canvas Business Model: Customer Segments

Burlington Stores, Inc. targets customers whose primary driver is value, seeking branded merchandise at significant markdowns from traditional department and specialty stores.

The core customer base is characterized by a broad demographic, heavily weighted toward middle-to-lower income families who prioritize price and brand accessibility.

• Value-conscious shoppers seeking deep discounts on branded goods.
• Trade-down shoppers moving from full-price to off-price retail.
• Customers seeking apparel, home goods, and accessories.

The financial performance in late 2025 reflects the success in attracting this segment, evidenced by the 7% year-over-year total sales increase in the third quarter of Fiscal 2025, reaching $2.71 billion. This growth is supported by an expanding physical footprint, with 1,211 locations as of the end of the third quarter of Fiscal 2025.

The product mix directly serves the stated customer needs for a wide variety of goods:

The focus on off-price retail is a direct appeal to the trade-down shopper, a trend supported by the company raising its full-year Adjusted EPS guidance to a range of $9.69 to $9.89 for Fiscal 2025. The company's trailing twelve-month revenue reached $11 billion as of the second quarter of Fiscal 2025. The customer's value orientation is also reflected in the company's margin discipline, with the Q3 Fiscal 2025 gross margin rate at 44.2%.

The appeal to a broad, value-seeking demographic is further evidenced by the company's aggressive expansion plans, targeting the opening of 104 net new stores in Fiscal 2025, building upon the 1,108 stores operated in Fiscal 2024. The company reaffirmed its long-term goal of achieving roughly $1.6 billion in operating income by fiscal 2028, which relies on continued customer acquisition across its growing store base.

For the second quarter of Fiscal 2025, the total sales growth was 10% year-over-year, with comparable store sales increasing by 5%, showing strong existing customer engagement. The third quarter of Fiscal 2025 saw comparable store sales increase by 1%, indicating continued, albeit slower, traffic from this core segment.

Burlington Stores, Inc. (BURL) - Canvas Business Model: Cost Structure

The cost structure for Burlington Stores, Inc. is heavily influenced by the cost of merchandise acquisition and the significant investment required for its physical footprint expansion under the Burlington 2.0 strategy.

Cost of Goods Sold (COGS) is the primary expense component. For the third quarter of Fiscal 2025, the Gross Margin rate as a percentage of net sales reached 44.2%, up 30 basis points from 43.9% in the third quarter of Fiscal 2024. This margin improvement was driven by a 10-basis-point expansion in merchandise margin and a 20-basis-point improvement in freight expense. The cost of sales, which is the inverse of gross margin, was reported at 55.8% of total revenue in Q3 2025.

Capital expenditures are substantial to support the aggressive store growth targets. Burlington projected capital expenditures, net of landlord allowances, to be approximately $950 million for Fiscal Year 2025. This investment underpins the plan to open approximately 104 net new stores in 2025.

Store operating costs are captured within Selling, General, and Administrative (SG&A) expenses. In Q3 2025, SG&A expenses leveraged 20 basis points compared with the prior year. Adjusted SG&A expenses as a percentage of net sales declined by 40 basis points in the same period.

Supply chain and distribution center expenses are a key area of focus for cost efficiency under the Burlington 2.0 strategy. Product sourcing costs, which include processing and buying expenses, were $214 million in Q3 2025, representing a decrease of 40 basis points as a percentage of net sales.

Here is a snapshot of key cost-related financial metrics from the third quarter of Fiscal 2025:

The Burlington 2.0 strategy emphasizes structural cost control through logistics modernization. Key elements driving these cost dynamics include:

• Investment in new, larger, and more automated distribution centers.
• Focus on owning distribution facilities rather than leasing them.
• A goal to achieve 100 basis points of product sourcing leverage over a five-year plan.
• Plans to open 110 net new stores in 2026.

Burlington Stores, Inc. (BURL) - Canvas Business Model: Revenue Streams

The core of Burlington Stores, Inc. revenue generation is the primary revenue from the sale of discounted merchandise in physical stores. You should note that over 99% of net sales are derived from stores operated as Burlington Stores. As of the third quarter of Fiscal 2025, the company operated 1,211 stores. For context, Fiscal 2024 net sales were $10,634.8 million.

Looking at the full-year Fiscal 2025 outlook, the guidance projected total sales to increase by approximately 8% on top of the 11% increase achieved for the 52-weeks ended February 1, 2025. The trailing twelve-month revenue as of late 2025 was reported at $11.01 Billion USD.

This expected sales growth is supported by two key drivers. The company assumed comparable store sales growth of 1% to 2% for the full Fiscal Year 2025. Furthermore, growth is being fueled by physical expansion, with guidance to open approximately 104 net new stores for Fiscal 2025.

Here's a quick look at the key components driving the top line for the period:

• Full-Year Fiscal 2025 Total Sales Growth Guidance: Approximately 8% increase.
• Comparable Store Sales Growth Assumption (FY2025): Range of 1% to 2%.
• Net New Stores Planned (FY2025): Approximately 104.
• Q3 Fiscal 2025 Comparable Store Sales Growth: 1%.

Beyond merchandise sales, Burlington Stores, Inc. captures incremental revenue through financial services and stored value instruments. While gift card sales figures aren't isolated, the private label credit card program contributes measurable amounts, primarily through service fees and rental income. Here are the reported figures related to the Private Label Credit Card (PLCC) program from the prior fiscal year, which informs the current model:

The Total PLCC Revenue for the period ending February 1, 2025, was $5,111 thousand.