Burlington Stores Inc. (BURL) shares plummeted 10.36% in pre-market trading on Tuesday following the release of its third-quarter 2025 earnings report. The significant drop came as the off-price retailer's sales figures fell short of analyst expectations and the company reported weather-related challenges impacting store traffic.

The company reported total sales of $2.71 billion for the quarter, up 7% year-over-year but slightly below the average analyst estimate of $2.73 billion. Comparable store sales increased by a modest 1%, significantly lower than the 2.6% growth analysts had anticipated. Burlington's CEO, Michael O'Sullivan, attributed the weaker-than-expected performance to unseasonably warm temperatures in major markets, which led to a significant drop in store traffic after the back-to-school period.

Despite the sales miss, Burlington managed to improve its profitability. The company reported adjusted earnings per share of $1.80, surpassing the FactSet consensus of $1.64. Gross margins also improved to 44.2% from 43.9% in the previous year, partly due to reduced freight expenses. In response to these mixed results, Burlington raised its full-year adjusted EPS guidance to a range of $9.69 to $9.89, up from the previous forecast of $9.19 to $9.59. The company also slightly increased its full-year total sales growth outlook to 8%, up from the previous range of 7% to 8%.