BURL (Burlington Stores) Degree of Operating Leverage : 1.61 (As of Apr. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

BURL Burlington Stores Inc BURL
84 GF Score
Price $369.58
GF Value $294.44
Valuation Modestly Overvalued
! 5 Warning Signs
View Full Analysis

What is Burlington Stores Degree of Operating Leverage?

Burlington Stores BURL +0.48% 84 Degree of Operating Leverage is 1.61 as of Apr. 2026. GuruFocus rates BURL with a GF Score™ of 84/100 and a GF Value™ of $294.44 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,105 Retail - Cyclical companies, Burlington Stores ranks worse than 55.93% on this metric.

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Burlington Stores's Degree of Operating Leverage for the quarter that ended in Apr. 2026 was 1.61. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Burlington Stores's Degree of Operating Leverage or its related term are showing as below:

BURL's Degree of Operating Leverage is ranked worse than
55.93% of 1105 companies
in the Retail - Cyclical industry
Industry Median: 1.14 vs BURL: 1.61

Burlington Stores  (NYSE:BURL) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Burlington Stores Degree of Operating Leverage Related Terms


Burlington Stores Degree of Operating Leverage Historical Data

* Premium members only.

The historical data trend for Burlington Stores's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Burlington Stores Degree of Operating Leverage Chart

Burlington Stores Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.54 5.86 3.86 3.94 2.19

Burlington Stores Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.15 2.65 2.17 2.19 1.61

BURL vs LULU, GAP, VSXY: Degree of Operating Leverage Comparison

For the Apparel Retail subindustry, Burlington Stores's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Burlington Stores Degree of Operating Leverage vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Burlington Stores's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Burlington Stores's Degree of Operating Leverage falls into.


BURL
84GF Score
Burlington Stores Inc BURL
Degree of Operating Leverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Burlington Stores Degree of Operating Leverage Calculation

Burlington Stores's Degree of Operating Leverage for the quarter that ended in Apr. 2026 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 897.642 (Apr. 2026) / 766.73 (Apr. 2025) - 1 )/( 11919.351 (Apr. 2026) / 10777.29 (Apr. 2025) - 1 )
=0.1707/0.106
=1.61***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

What does a Degree of Operating Leverage of 1.61 mean?
Burlington Stores (BURL) has a Degree of Operating Leverage of 1.61 as of Apr. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Burlington Stores and its competitors. According to the industry distribution chart, Burlington Stores ranks #618 out of 1105 companies in the Retail - Cyclical industry, placing it in the top 55.9%.
Is Burlington Stores' Degree of Operating Leverage too high?
Burlington Stores' current Degree of Operating Leverage is 1.61. The Retail - Cyclical industry median Degree of Operating Leverage is 1.14. Burlington Stores' value of 1.61 is 41.2% above this industry median. Based on the distribution chart, Burlington Stores ranks #618 out of 1105 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Burlington Stores has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Burlington Stores' Degree of Operating Leverage compare to LULU and GAP?
According to the Retail - Cyclical industry distribution chart, Burlington Stores ranks #618 out of 1105 companies for Degree of Operating Leverage. This places Burlington Stores in the lower half of its industry. The industry median Degree of Operating Leverage is 1.14. Burlington Stores' value of 1.61 is 41.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Retail - Cyclical company?
The median Degree of Operating Leverage among Retail - Cyclical companies is 1.14, based on 1,105 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Burlington Stores's current Degree of Operating Leverage of 1.61 is 41.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Burlington Stores and its competitors. For the Retail - Cyclical industry, the median Degree of Operating Leverage is 1.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Burlington Stores's current Degree of Operating Leverage is 1.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Burlington Stores stock overvalued right now?
Based on GuruFocus' analysis, Burlington Stores (BURL) is currently considered Modestly Overvalued. The stock's GF Value™ is $294.44, compared to a current price of $369.58 — trading 25.5% above its estimated fair value. The current Degree of Operating Leverage is 1.61 and 41.2% above the Retail - Cyclical industry median of 1.14. Burlington Stores' overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Burlington Stores (BURL), the current Degree of Operating Leverage is 1.61 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Burlington Stores (BURL) Overvalued in 2026?

Based on GuruFocus' analysis, Burlington Stores stock appears to be overvalued. The current stock price of $369.58 is trading 25.5% above its estimated GF Value™ of $294.44. GuruFocus considers Burlington Stores to be Modestly Overvalued.

Key valuation signals for BURL:

  • Degree of Operating Leverage: 1.61
  • GF Value™: $294.44 vs. price of $369.58 (25.5% above fair value)
  • GF Score™: 84/100 with 5 warning signs
  • Industry Position: 41.2% above the Retail - Cyclical median (#618 of 1105)

No single metric tells the full story. See the BURL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Burlington Stores Business Description

Address 2006 Route 130 North, Burlington, NJ, USA, 08016
Burlington Stores Inc is an off-price retailer offering an extensive selection of in-season, fashion-focused merchandise, including women's ready-to-wear apparel, menswear, youth apparel, baby, beauty, footwear, accessories, home, toys, gifts, and coats. The company sells a broad selection of desirable, first-quality, current-brand, labeled merchandise acquired directly from nationally recognized manufacturers and other suppliers. It sells products in categories such as Ladies apparel, Accessories and shoes, Home, Mens apparel, Kids apparel and baby, and Outerwear.
84GF Score

Get the complete analysis for BURL

Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$369.58
Price
$294.44
GF Value