Burlington Stores, Inc.
For the period ended Aug 1, 2026. Filed Aug 27, 2026.
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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 1, 2026 · Filed Aug 27, 2026
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 2026-05-02; filed 2026-05-28.
0001193125-26-245274
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-08-01; filed 2026-08-27.
0001193125-26-371311
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 178 previous paragraphs and 200 current paragraphs.
129 unchanged; 44 reworded; 23 added; 4 removed; 1 previous and 4 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 (23)
Current report
Impairment charges – long-lived assets
Current report
Impairment charges on long-lived assets were $3.6 million during the second quarter of Fiscal 2026, related to unrecoverable store assets at underperforming stores and impairment of assets held-for-sale. Impairment charges on long-lived assets were $1.6 million during the second quarter of Fiscal 2025, related to unrecoverable store assets.
Current report
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
Interest expense increased $2.2 million during the second quarter of Fiscal 2026 to $19.7 million, compared to the same period in the prior year, which was driven by an increase in net borrowings.
Current report
Six Month Period Ended August 1, 2026 Compared With the Six Month Period Ended August 2, 2025
Current report
Net sales
Current report
Net sales improved $649.0 million, or 12.5%, to $5,850.1 million during the six month period ended August 1, 2026, primarily driven by both an increase in net sales of $451.7 million from our 149 net new stores opened since the end of the second quarter of Fiscal 2025, as well as an increase of 4%, or $197.3 million, in comparable stores sales during the six month period ended August 1, 2026.
Current report
Cost of sales
Current report
Cost of sales as a percentage of net sales decreased to 54.9% during the six month period ended August 1, 2026, compared to 56.2% during the six month period ended August 2, 2025. This improvement was driven primarily by $55.5 million of tariff refunds as well as improved merchandise margin. On a dollar basis, cost of sales increased $284.1 million, or 9.7%, 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 34.3% during the six month period ended August 1, 2026, compared to 35.0% during the six month period ended August 2, 2025. The decrease was primarily driven by an improvement in occupancy costs and product sourcing costs, partially offset by an increase in incentive compensation. On a dollar basis, selling, general and administrative expenses increased by $190.6 million, or 10.5%, to $2,008.5 million during the six month period ended August 1, 2026. The increase was primarily driven by our 149 net new stores opened since the end of the second quarter of Fiscal 2025.
Current report
Depreciation and amortization
Current report
Impairment charges – long-lived assets
Current report
Impairment charges on long-lived assets were $4.4 million during the six month period ended August 1, 2026, related to unrecoverable store assets at underperforming stores and impairment of assets held-for-sale. Impairment charges on long-lived assets were $2.1 million during the six month period ended August 2, 2025, related to unrecoverable store assets.
Current report
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
Interest expense
Current report
Interest expense increased $2.9 million during the six month period ended August 1, 2026 to $36.2 million, compared to the same period in the prior year, which was driven by an increase in net borrowings.
Current report
Income tax expense
Current report
Income tax expense was $85.7 million during the six month period ended August 1, 2026 compared with income tax expense of $65.2 million during the six month period ended August 2, 2025. The effective tax rate for the six month period ended August 1, 2026 was 22.3% compared with 25.0% during the six month period ended August 2, 2025. 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 and purchase of federal energy tax credits.
Current report
Net income
Current report
We earned net income of $299.0 million for the six month period ended August 1, 2026 compared with $195.0 million for the six month period ended August 2, 2025. This increase was primarily driven by higher sales, as well as increased gross margin rate. Net income included $41.3 million, net of income taxes, for the first half of Fiscal 2026 related to tariff refunds. Net income also included $8.8 million and $12.4 million, net of income taxes, for the first half of Fiscal 2026 and for the first half of Fiscal 2025, respectively, related to the bankruptcy acquired leases.
Current report
We are in the process of selecting a site for relocation of our corporate headquarters. The timing and amount of expenditures related to this relocation are still uncertain. Thus, the above estimated capital expenditures exclude any potential costs related to the relocation that could be incurred during Fiscal 2026.
Current report
On August 2, 2025, we had $945.7 million available under the ABL Line of Credit. Average borrowings during the three and six months ended August 2, 2025 amounted to $57.1 million and $40.4 million, respectively, at an average interest rate of 5.5% for both periods.
Removed paragraphs (4)
Previous report
On February 20, 2026, the U.S. Supreme Court issued a ruling limiting the authority to impose tariffs under the International Emergency Economic Powers Act (“IEEPA”), creating uncertainty regarding the potential recovery of tariffs previously assessed under that statute. In April, US Customs launched a system to allow importers of record to file IEEPA tariff refunds. We have filed claims to seek recovery of such tariffs; however, the availability, timing, and amount of any refunds remain uncertain and depend on further legal, regulatory, and administrative actions.
Previous report
Cost related to debt amendments and inducement charges amounted to $15.3 million during the first quarter of Fiscal 2026 compared with $0.1 million during the first quarter of Fiscal 2025. The increase is driven by an inducement charge related to the partial settlement of our 2027 Convertible Notes during the first quarter of Fiscal 2026. Refer to Note 4, “Long Term Debt,” for further discussion regarding this transaction.
Previous report
Interest expense increased $0.7 million during the first quarter of Fiscal 2026 to $16.5 million, compared to the same period in the prior year. An increase related to the upsize of the Term Loan Facility was partially offset by increased capitalized interest as a result of the ongoing construction of a distribution center and exchange of certain of convertible notes.
Previous report
On September 12, 2023, we closed the issuance of approximately $297.1 million aggregate principal amount of our 2027 Convertible Notes (the "2027 Convertible Notes" and, together with the 2025 Convertible Notes, the "Convertible Notes") pursuant to separate, privately negotiated exchange and subscription agreements with a limited number of holders of our 2025 Convertible Notes and certain investors, in each case pursuant to exemptions from registration under the Securities Act of 1933. An aggregate of up to 1,422,568 shares of common stock may be issued upon conversion of the 2027 Convertible Notes, which number is subject to adjustment up to an aggregate of 1,911,372 shares following certain corporate events that occur prior to the maturity date or if we issue a notice of redemption, and which is also subject to certain anti-dilution adjustments.
Reworded paragraphs (44)
Previous 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 1,242 stores as of May 2, 2026 in 47 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 1,287 stores as of August 1, 2026 in 47 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 2026 is defined as the 52-week year ended January 30, 2027. Fiscal 2025 is defined as the 52-week year ending January 31, 2026. The first quarters of Fiscal 2026 and Fiscal 2025 each consist of 13 weeks.
Current wording
Fiscal 2026 is defined as the 52-week year ending January 30, 2027. Fiscal 2025 is defined as the 52-week year ended January 31, 2026. The second quarters of Fiscal 2026 and Fiscal 2025 each consist of 13 weeks.
Previous wording
During the three month period ended May 2, 2026, we opened 40 new stores, inclusive of six relocations, and permanently closed four stores, exclusive of the aforementioned relocations, bringing our store count as of May 2, 2026 to 1,242 stores.
Current wording
During the six month period ended August 1, 2026, we opened 91 new stores, inclusive of 12 relocations, and permanently closed four stores, exclusive of the aforementioned relocations, bringing our store count as of August 1, 2026 to 1,287 stores.
Previous wording
downsizing select existing stores to incorporate our new store designs and reduce occupancy costs.
Current wording
downsizing and relocating select existing stores to incorporate our new store designs and reduce occupancy costs.
Previous wording
Net income. We earned net income of $114.7 million during the three month period ended May 2, 2026 compared with net income of $100.8 million during the three month period ended May 3, 2025. 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 $184.3 million during the three month period ended August 1, 2026 compared with net income of $94.2 million during the three month period ended August 2, 2025. We earned net income of $299.0 million during the six month period ended August 1, 2026 compared with a net income of $195.0 million during the six month period ended August 2, 2025. These increases were primarily driven by higher sales, as well as increased gross margin rate, including a $55.5 million benefit from tariff refunds. Refer to the section below entitled “Results of Operations” for further explanation.
Previous wording
During the three months ended May 2, 2026, Adjusted Net Income increased $26.3 million to $128.9 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 1, 2026, Adjusted Net Income increased $87.5 million to $189.3 million and increased $113.8 million to $318.2 million, respectively, compared to the same period in the prior year. These increases were primarily driven by higher sales, as well as increased gross margin rate, including a $55.5 million benefit from tariff refunds. 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 2, 2026 compared with the three months ended May 3, 2025:
Current wording
The following table shows our reconciliation of net income to Adjusted Net Income for the three and six months ended August 1, 2026 compared with the three and six months ended August 2, 2025:
Previous wording
During the three months ended May 2, 2026, Adjusted EBIT increased $25.4 million to $171.7 million compared to the same period in the prior year. During the three months ended May 2, 2026, Adjusted EBITDA increased $38.2 million to $276.3 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 1, 2026, Adjusted EBIT increased $110.4 million to $261.3 million and increased $135.7 million to $432.9 million, respectively, compared to the same periods in the prior year. During the three and six months ended August 1, 2026, Adjusted EBITDA increased $129.6 million to $375.3 million and increased $167.8 million to $651.6 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, including a $55.5 million benefit of tariff refunds. 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 2, 2026 compared with the three months ended May 3, 2025:
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 1, 2026 compared with the three and six months ended August 2, 2025:
Previous wording
Gross margin as a percentage of net sales increased to 44.1% during the three month period ended May 2, 2026, compared with 43.8% during the three month period ended May 3, 2025. This improvement was driven primarily by improved merchandise margin and freight costs.
Current wording
Gross margin as a percentage of net sales increased to 46.2% during the three month period ended August 1, 2026, compared with 43.7% during the three month period ended August 2, 2025. Gross margin as a percentage of net sales increased to 45.1% during the six month period ended August 1, 2026, compared with 43.8% during the six month period ended August 2, 2025. This improvement was primarily driven by $55.5 million of tariff refunds as well as improved merchandise margin.
Previous wording
Product sourcing costs, which are included in selling, general and administrative expenses, improved 30 basis points as a percentage of net sales during the three month period ended May 2, 2026 compared with the three month period ended May 3, 2025.
Current wording
Product sourcing costs, which are included in selling, general and administrative expenses, improved 20 and 30 basis points as a percentage of net sales during the three and six month periods ended August 1, 2026 compared with the three and six month periods ended August 2, 2025, respectively. These improvements were primarily driven by supply chain efficiency initiatives.
Previous wording
Inventory. Inventory at May 2, 2026 increased to $1,444.2 million compared with $1,315.3 million at May 3, 2025. The increase was attributable primarily to an 11% increase in comparable store inventory and new store inventory at 127 net new stores opened since the end of the first quarter of Fiscal 2025, partially offset by a slight decrease in reserve inventory.
Current wording
Inventory. Inventory as of August 1, 2026 increased to $1,541.3 million compared with $1,414.8 million as of August 2, 2025. The increase was attributable primarily to an 11% increase in comparable store inventory and new store inventory at 149 net new stores opened since the end of the second quarter of Fiscal 2025, partially offset by a decrease in reserve inventory.
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 41% of total inventory at the end of the first quarter of Fiscal 2026 compared to 48% at the end of the first quarter of Fiscal 2025.
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 43% of total inventory at the end of the second quarter of Fiscal 2026 compared to 50% at the end of the second quarter of Fiscal 2025.
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 $485.2 million during the three months ended May 2, 2026, compared with a decrease of $623.6 million during the three months ended May 3, 2025. 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 $528.8 million during the six months ended August 1, 2026, compared with a decrease of $247.1 million during the six months ended August 2, 2025. 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 2, 2026 and the three months ended May 3, 2025.
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 1, 2026 and the three and six months ended August 2, 2025.
Previous wording
Net sales improved $352.2 million, or 14.1%, to $2,852.3 million during the first quarter of Fiscal 2026, primarily driven by both an increase in net sales of $196.9 million from our 127 net new stores opened since the end of the first quarter of Fiscal 2025 and non-comparable stores, as well as an increase of 6%, or $155.3 million, in comparable stores sales during the three month period ended May 2, 2026.
Current wording
Net sales improved $296.8 million, or 11.0%, to $2,997.8 million during the second quarter of Fiscal 2026, primarily driven by both an increase in net sales of $254.8 million from our 149 net new stores opened since the end of the second quarter of Fiscal 2025 and non-comparable stores, as well as an increase of 2%, or $42.0 million, in comparable stores sales during the six month period ended August 1, 2026.
Previous wording
Cost of sales as a percentage of net sales decreased to 55.9% during the first quarter of Fiscal 2026, compared to 56.2% during the first quarter of Fiscal 2025. This improvement was driven primarily by improved merchandise margin and freight costs. On a dollar basis, cost of sales increased $189.7 million, or 13.5%, primarily driven by our overall increase in sales.
Current wording
Cost of sales as a percentage of net sales decreased to 53.8% during the second quarter of Fiscal 2026, compared to 56.3% during the second quarter of Fiscal 2025. This improvement was driven primarily by $55.5 million of tariff refunds as well as improved merchandise margin. On a dollar basis, cost of sales increased $94.4 million, or 6.2%, primarily driven by our overall increase in sales, partially offset by tariff refunds.
Previous wording
Selling, general and administrative expenses as a percentage of net sales remained at 34.7% during the first quarter of Fiscal 2026, compared to the same percentage of net sales during the first quarter of Fiscal 2025. During the first quarter of 2026, improvements in occupancy and product sourcing costs were offset by increases in incentive compensation and marketing.
Current wording
Selling, general and administrative expenses as a percentage of net sales decreased to 34.0% during the second quarter of Fiscal 2026, compared to 35.2% during the second quarter of Fiscal 2025. The decrease was primarily driven by improvements in occupancy, selling supplies, legal reserve, and product sourcing costs.
Previous wording
On a dollar basis, selling, general and administrative expenses increased by $121.3 million, or 14.0%, to $989.4 million during the first quarter of Fiscal 2026. The increase was primarily driven by our 127 net new stores opened since the end of the first quarter of Fiscal 2025, as well as an increase in incentive compensation.
Current wording
On a dollar basis, selling, general and administrative expenses increased by $69.2 million, or 7.3%, to $1,019.2 million during the second quarter of Fiscal 2026. The increase was primarily driven by our 149 net new stores opened since the end of the second quarter of Fiscal 2025.
Previous wording
During the first quarter of Fiscal 2026, the Company incurred costs related to leases acquired through bankruptcy proceedings. The acquisition of these leases resulted in $7.4 million and $5.8 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 2026 and the first quarter of Fiscal 2025, respectively.
Current wording
During the second quarter of Fiscal 2026, we incurred costs related to leases acquired through bankruptcy proceedings. The acquisition of these leases resulted in $4.4 million and $10.8 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 2026 and the second quarter of Fiscal 2025, respectively.
Previous wording
Depreciation and amortization expense amounted to $104.6 million during the first quarter of Fiscal 2026 compared with $91.8 million during the first quarter of Fiscal 2025. The increase in depreciation and amortization expense was primarily driven by new and non-comparable stores.
Current wording
Depreciation and amortization expense amounted to $114.0 million during the second quarter of Fiscal 2026 compared with $94.8 million during the second quarter of Fiscal 2025. The increase in depreciation and amortization expense was primarily driven by new and non-comparable stores, as well as capital expenditures related to investments in our supply chain infrastructure.
Previous wording
Income tax expense was $27.9 million during the first quarter of Fiscal 2026 compared with income tax expense of $32.0 million during the first quarter of Fiscal 2025. The effective tax rate for the first quarter of Fiscal 2026 was 19.6% compared with 24.1% during the first quarter of Fiscal 2025. The decrease in income tax expense and the lower tax rate was primarily attributable to the tax benefit from stock-based compensation.
Current wording
Income tax expense was $57.8 million during the second quarter of Fiscal 2026 compared with income tax expense of $33.1 million during the second quarter of Fiscal 2025. The effective tax rate for the second quarter of Fiscal 2026 was 23.9% compared with 26.0% during the second quarter of Fiscal 2025. The increase in income tax expense is due to higher pre-tax income. The lower effective tax rate is primarily driven by the purchase of federal energy tax credits.
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 2026 resulted in an annual effective income tax rate of approximately 27% (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 2026 resulted in an annual effective income tax rate of approximately 27% (before discrete items) as our best estimate.
Previous wording
We earned net income of $114.7 million for the first quarter of Fiscal 2026 compared with $100.8 million for the first quarter of Fiscal 2025. This increase was primarily driven by higher sales, as well as increased gross margin rate. Net income included $5.5 million and $4.3 million, net of income taxes, for the first quarter of Fiscal 2026 and the first quarter of Fiscal 2025, respectively, related to the bankruptcy acquired leases.
Current wording
We earned net income of $184.3 million for the second quarter of Fiscal 2026 compared with $94.2 million for the second quarter of Fiscal 2025. This increase was primarily driven by higher sales, as well as increased gross margin rate. Net income included $41.3 million, net of income taxes, for the second quarter of Fiscal 2026 related to tariff refunds. Net income also included $3.3 million and $8.1 million, net of income taxes, for the second quarter of Fiscal 2026 and for the second quarter of Fiscal 2025, respectively, related to the bankruptcy acquired leases.
Previous wording
Cash Flow for the Three Month Period Ended May 2, 2026 Compared With the Three Month Period Ended May 3, 2025
Current wording
Cash Flow for the Six Month Period Ended August 1, 2026 Compared With the Six Month Period Ended August 2, 2025
Previous wording
We used $485.2 million of cash during the three month period ended May 2, 2026 compared with a use of $623.6 million during the three month period ended May 3, 2025.
Current wording
We used $528.8 million of cash during the six month period ended August 1, 2026 compared with a use of $247.1 million during the six month period ended August 2, 2025.
Previous wording
Net cash provided by operating activities amounted to $61.5 million during the three month period ended May 2, 2026, compared with net cash used in operating activities of $28.9 million during the three month period ended May 3, 2025. The increase in our operating cash flows was primarily driven by improved sales and gross margin, partially offset by the impact of changes in working capital.
Current wording
Net cash provided by operating activities amounted to $334.6 million during the six month period ended August 1, 2026, compared with $150.5 million during the six month period ended August 2, 2025. The increase in our operating cash flows was primarily driven by improved sales and gross margin, including a $55.5 million benefit of tariff refunds, partially offset by changes in working capital.
Previous wording
Net cash used in investing activities was $289.7 million during the three month period ended May 2, 2026 compared with $412.7 million during the three month period ended May 3, 2025. This change was primarily the result of the timing of spend related to investments in our supply chain infrastructure.
Current wording
Net cash used in investing activities was $537.7 million during the six month period ended August 1, 2026 compared with $581.4 million during the six month period ended August 2, 2025. This change was primarily the result of the timing of spend related to investments in our supply chain infrastructure.
Previous wording
Net cash used by financing activities was $257.0 million during the three month period ended May 2, 2026 compared with $182.0 million during the three month period ended May 3, 2025. This change was primarily driven by borrowings on the ABL Line of Credit during the first quarter of Fiscal 2025, compared to no borrowings during the first quarter of Fiscal 2026.
Current wording
Net cash used in financing activities was $325.7 million during the six month period ended August 1, 2026 compared with net cash provided by financing activities of $183.8 million during the six month period ended August 2, 2025. This change was primarily driven by the term loan upsize during the second 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 2, 2026 of $352.7 million compared with $115.3 million at May 3, 2025. The increase in working capital was primarily due to increased cash balance. We had working capital at January 31, 2026 of $522.3 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 1, 2026 of $380.3 million compared with $480.3 million at August 2, 2025. The decrease in working capital was primarily due to increased accounts payable, decreased prepaid assets, increased current operating lease liabilities, and decreased cash, partially offset by increased inventory. We had working capital at January 31, 2026 of $522.3 million.
Previous wording
For the three month period ended May 2, 2026, capital expenditures, net of $20.1 million of landlord allowances, amounted to $193.6 million (inclusive of accrued capital expenditures).
Current wording
For the six month period ended August 1, 2026, capital expenditures, net of $28.3 million of landlord allowances, amounted to $426.7 million (inclusive of accrued capital expenditures).
Previous wording
During the three month period ended May 2, 2026, we repurchased 257,906 shares of common stock for $80.8 million under these repurchase programs. As of May 2, 2026, we had $304.2 million remaining under our share repurchase authorization.
Current wording
During the six month period ended August 1, 2026, we repurchased 528,185 shares of common stock for $167.4 million under these repurchase programs. As of August 1, 2026, we had $217.6 million remaining under our share repurchase authorization.
Previous wording
During the three month period ended May 2, 2026, we opened 40 new stores, inclusive of six relocations, and closed four stores, exclusive of the aforementioned relocations, bringing our store count as of May 2, 2026 to 1,242 stores.
Current wording
During the six month period ended August 1, 2026, we opened 91 new stores, inclusive of 12 relocations, and closed four stores, exclusive of the aforementioned relocations, bringing our store count as of August 1, 2026 to 1,287 stores.
Previous wording
As of May 2, 2026, our obligations, inclusive of original issue discount, include $1,715.5 million under our Term Loan Facility, $186.1 million of our 2027 Convertible Notes and no outstanding borrowings on our ABL Line of Credit. Our debt obligations also include $22.1 million of finance lease obligations as of May 2, 2026.
Current wording
As of August 1, 2026, our obligations, inclusive of original issue discount, include $1,711.7 million under our Term Loan Facility, $186.1 million of our 2027 Convertible Notes and no outstanding borrowings on our ABL Line of Credit. Our debt obligations also include $21.8 million of finance lease obligations as of August 1, 2026.
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 2, 2026 of $1,726.2 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 1, 2026 of $1,721.8 million maturing on September 24, 2031.
Previous wording
At May 2, 2026, our borrowing rate related to the Term Loan Facility was 5.4%.
Current wording
At August 1, 2026 and August 2, 2025, the interest rate related to the Term Loan Facility was 5.5% and 6.1%, respectively.
Previous wording
At May 2, 2026, we had $942.1 million available under the ABL Line of Credit. There were no borrowings under the ABL Line of Credit during the three month period ended May 2, 2026.
Current wording
On August 1, 2026, we had $942.0 million available under the ABL Line of Credit. There were no borrowings under the ABL Line of Credit during the three and six months ended August 1, 2026.
Previous wording
On April 16, 2020, we issued 2.25% Convertible Senior Notes due 2025 (the "2025 Convertible Notes"), which matured on April 15, 2025. The 2025 Convertible Notes were general unsecured obligations of the Company and bore interest at a rate of 2.25% per year, payable semi-annually in cash, in arrears, on April 15 and October 15 of each year.
Current wording
On April 16, 2020, we issued our 2.25% Convertible Senior Notes due 2025 (the "2025 Convertible Notes"), which matured on April 15, 2025. The 2025 Convertible Notes were general unsecured obligations of the Company and bore interest at a rate of 2.25% per year, payable semi-annually in cash, in arrears, on April 15 and October 15 of each year.
Previous wording
Prior to maturity, holders of the 2025 Convertible Notes submitted conversion notices with respect to approximately $155.5 million aggregate principal amount of the 2025 Convertible Notes. On the conversion settlement date, the Company paid to the converting holders the aggregate principal amount of 2025 Convertible Notes subject to conversion, and issued and delivered to such holders 57,149 shares of common stock, in respect of the remainder of its conversion obligation in excess of such aggregate principal amount. At maturity, the Company paid in cash the principal balance and related accrued and unpaid interest on the 2025 Convertible Notes not previously converted. There was no resulting debt extinguishment charge from this transaction.
Current wording
Prior to maturity, holders of the 2025 Convertible Notes submitted conversion notices with respect to approximately $155.5 million aggregate principal amount of the 2025 Convertible Notes. On the conversion settlement date, we paid to the converting holders the aggregate principal amount of 2025 Convertible Notes subject to conversion, and issued and delivered to such holders 57,149 shares of common stock, in respect of the remainder of its conversion obligation in excess of such aggregate principal amount. At maturity, we paid in cash the principal balance and related accrued and unpaid interest on the 2025 Convertible Notes not previously converted. There was no resulting debt extinguishment charge from this transaction.
Previous wording
The 2027 Convertible Notes bear interest at a rate of 1.25% per year, payable semi-annually in arrears on June 15 and December 15 of each year. The 2027 Convertible Notes will mature on December 15, 2027, unless earlier converted, redeemed or repurchased.
Current wording
On September 12, 2023, we closed the issuance of approximately $297.1 million aggregate principal amount of our 1.25% Convertible Senior Notes due 2027 (the "2027 Convertible Notes" and, together with the 2025 Convertible Notes, the "Convertible Notes").The 2027 Convertible Notes bear interest at a rate of 1.25% per year, payable semi-annually in arrears on June 15 and December 15 of each year. The 2027 Convertible Notes will mature on December 15, 2027, unless earlier converted, redeemed or repurchased.
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Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
During the six month period ended August 1, 2026 and August 2, 2025, we incurred costs related to leases acquired through bankruptcy proceedings. The acquisition of these leases resulted in $11.8 million and $16.6 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 period ended August 1, 2026 and August 2, 2025, respectively.
Current report — wording carried from elsewhere
Depreciation and amortization expense amounted to $218.6 million during the six month period ended August 1, 2026 compared with $186.6 million during the six month period ended August 2, 2025. The increase in depreciation and amortization expense was primarily driven by new and non-comparable stores.
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 1, 2026 resulted in an annual effective income tax rate of approximately 27% (before discrete items) as our best estimate.
Current report — wording carried from elsewhere
130% of the conversion price for a specified period of time, at a redemption price equal to 100% of the aggregate principal amount of the 2027 Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Costs related to debt amendments and inducement charges