Burlington Stores, Inc. vs Ross Stores, Inc.: Strategic Comparison

This in-depth comparison examines Burlington Stores, Inc. and Ross Stores, Inc. across revenue, market value, business model, competitive positioning, and long-term growth strategy. Whether you are researching Burlington Stores, Inc. on its own, evaluating Ross Stores, Inc., or weighing the two companies side by side, the breakdown below highlights where each company leads and where the gap between Burlington Stores, Inc. and Ross Stores, Inc. is widest.

On the headline numbers, Burlington Stores, Inc. reports annual revenue of $11.6B against $22.8B for Ross Stores, Inc., while their respective market capitalizations stand at $16.8B and $73.7B. Burlington Stores, Inc. is headquartered in United States and Ross Stores, Inc. operates from United States, and those different home markets shape how each company competes.

Burlington Stores, Inc.: Burlington, known as Burlington Coat Factory until 2013, is one of the three big U.S. off-price chains alongside TJX and Ross Stores. Shoppers come for branded women's, men's and children's clothing, shoes, accessories, baby gear in the Baby Depot department, beauty, toys and home decor, all priced below department stores. Stock changes constantly because it is bought from whatever surplus brands and retailers have, so the store works as a treasure hunt: an item on the rack this week may be gone the next. Coats remain a signature category inside a year-round assortment.

Ross Stores, Inc.: Ross Stores runs two off-price chains. Ross Dress for Less sells name-brand apparel, footwear and home fashions at 20% to 60% below department and specialty store regular prices. dd's DISCOUNTS targets a more moderate-income shopper with savings of 20% to 70% versus moderate department and discount store regular prices. Both operate in strip centers and rely on fast-changing assortments rather than e-commerce.

Burlington Stores, Inc. and Ross Stores, Inc. pursue distinct approaches to generating revenue, and understanding how each company operates is the foundation of any fair comparison between Burlington Stores, Inc. and Ross Stores, Inc..

Burlington Stores, Inc. business model: 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.

Ross Stores, Inc. business model: Ross earns nearly all revenue from in-store merchandise sales at Ross Dress for Less and dd's DISCOUNTS. More than 800 merchants buy branded apparel, footwear, home goods and accessories from manufacturer overruns, canceled orders and closeouts. Part of that buying is held as packaway inventory for later seasons. Stores are self-service with simple fixtures in strip centers, which keeps occupancy and labor costs low, and assortments change constantly so shoppers return often. Ross does not sell merchandise online.

The durability of a company's moat often decides long-term winners. Here is how the competitive advantages of Burlington Stores, Inc. stack up against those of Ross Stores, Inc..

Burlington Stores, Inc. competitive advantage: Burlington's edge is cost and flexibility. Because it does not commit to full seasonal assortments months ahead, its buyers can take excess branded inventory when it becomes available and price it below department stores. Selling only in stores, with no e-commerce since March 2020, keeps parcel shipping and online returns out of the cost base. Its real estate approach adds a further advantage: it has repeatedly taken over leases from bankrupt chains, including 62 former Bed Bath & Beyond sites in 2023 and 45 Joann sites in 2025, which gives it ready-built stores in established shopping centers.

Ross Stores, Inc. competitive advantage: Ross's edge is buying scale plus low operating cost. A large merchant team and long vendor relationships give it access to branded closeout goods, and lean store formats let it price 20% to 60% below department store regular prices while still earning a double-digit operating margin. Staying store-only avoids the shipping and returns cost that weighs on online sellers of low-ticket apparel.

Future prospects matter as much as current results. The growth strategies below explain how Burlington Stores, Inc. and Ross Stores, Inc. each plan to expand from here.

Burlington Stores, Inc. growth strategy: 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.

Ross Stores, Inc. growth strategy: Growth comes mainly from new stores and comparable store sales. Ross raised its 2026 opening plan to 115 locations after opening 64 in the first half. Under CEO Jim Conroy, the company has added marketing, brand-forward merchandise and in-store experience changes, and management credits traffic from both new and existing customers for the 2026 comp gains.

A closer look at the financial trajectory of Burlington Stores, Inc. and Ross Stores, Inc. rounds out the comparison.

Burlington Stores, Inc.: Burlington's total revenue roughly doubled from $5.59 billion in fiscal 2016 to $11.57 billion in fiscal 2025. The exception was fiscal 2020, when pandemic store closures cut revenue to $5.76 billion and produced a $216.5 million net loss. Profit has since grown faster than sales: net income went from $230.1 million in fiscal 2022 to $339.6 million, $503.6 million and $610.2 million over the next three years. Heavy store investment limits free cash flow, which was about $172 million in fiscal 2025 after roughly $1.06 billion of capital spending. In the second quarter of fiscal 2026 (to August 1, 2026), total sales rose 11 percent to $2.998 billion and net income was $184 million, including a $41 million after-tax benefit from tariff refunds. The company raised its full-year adjusted EPS guidance to $11.77 to $11.97.

Ross Stores, Inc.: Ross grew sales from $12.9 billion in fiscal 2016 to $22.8 billion in fiscal 2025, with a sharp dip to $12.5 billion in pandemic-hit fiscal 2020. Net income reached $2.1 billion in fiscal 2025. Fiscal 2026 accelerated: Q1 sales rose 21% to $6.0 billion on 17% comps, and Q2 sales rose 13% to $6.3 billion on 10% comps. Q2 net income of $851 million included about $253 million in IEEPA tariff refunds, worth roughly $0.60 per share. Ross plans to repurchase $1.275 billion of stock in fiscal 2026 under a two-year $2.55 billion authorization approved in March 2026.