How Burlington Makes Money

Burlington makes nearly all of its money from merchandise sold in its stores. Net sales were $11.55 billion of its $11.57 billion fiscal 2025 total revenue; the remaining $17 million of other revenue comes from sources such as rental income and service fees. Its merchants buy branded goods when manufacturers or other retailers have excess stock, cancelled orders or closeouts, which lets Burlington price items below department stores. Some buys are held back as packaway inventory and released to stores later in the season or the following year. Under the Burlington 2.0 plan introduced by CEO Michael O'Sullivan, stores carry less inventory and buyers keep more money open to purchase closer to the selling season, so they can react to what is selling. The company has sold only through stores since it announced the end of its e-commerce business in March 2020, judging the small online operation unprofitable for low-priced off-price merchandise.

Burlington grows mainly by opening stores. It added 178 gross and 149 net new stores in the 12 months to August 1, 2026, and plans about 115 net openings in fiscal 2026. New stores use a smaller prototype of about 25,000 square feet instead of the very large boxes of the Coat Factory era, which lowers rent and labor per store. Many sites come from retailer bankruptcies: Burlington took on 62 Bed Bath & Beyond leases in 2023 and 45 Joann leases in 2025, and the Joann sites feed a large share of its 2026 openings. Inside existing stores, the Burlington 2.0 plan focuses on leaner inventory, faster turns and buying closer to need.