TLDR
- BJ’s Wholesale Club posted Q3 adjusted earnings of $1.16 per share, surpassing analyst forecasts of $1.09-$1.10
- Revenue grew 4.9% year-over-year to $5.35 billion, matching Wall Street projections
- Membership fee revenue surged 9.8% to $126.3 million on strong retention and acquisition
- Full-year earnings guidance increased to $4.30-$4.40 per share from prior $4.20-$4.35 range
- Stock jumped 3.7% in premarket trading after the earnings announcement
BJ’s Wholesale Club exceeded Wall Street expectations in its fiscal third quarter. The warehouse retailer delivered earnings that topped estimates despite facing higher operating costs.
BJ’s Wholesale Club Holdings, Inc., BJ
The company reported adjusted earnings of $1.16 per share for the quarter ending November 1. Analysts had projected $1.09 to $1.10 per share. The earnings beat sent shares climbing 3.7% to $93.91 in premarket trading.
Revenue reached $5.35 billion, up 4.9% from the prior year. This matched analyst estimates. The growth came as BJ’s opened new locations and expanded its digital presence.
Net income fell to $152.1 million from $155.7 million in the year-ago quarter. Per-share earnings dropped to $1.15 from $1.17. Rising expenses offset revenue gains during the period.
Operating expenses increased to $788.2 million from $733.6 million. New store openings drove higher labor and occupancy costs. Marketing spending also rose year-over-year.
Strong Membership Performance
Membership fee income provided the quarter’s bright spot. This key metric grew 9.8% to $126.3 million. New member sign-ups remained strong throughout the period. Existing members renewed at healthy rates.
Premium tier memberships gained traction across the club base. The company’s earlier fee increase continued delivering results without dampening membership growth.
Comparable club sales rose 1.1% during the quarter. Excluding gas sales, the metric increased 1.8%. The two-year stacked rate reached 5.5%. Wall Street had expected slightly stronger performance.
Digital channels showed impressive growth. Online-enabled sales jumped 30% year-over-year. The two-year stacked growth rate hit 61%.
CEO Bob Eddy highlighted the company’s resilience. The business continues performing well despite economic uncertainty. Management believes BJ’s offers compelling value heading into the holiday season.
Updated Financial Outlook
BJ’s adjusted its full-year projections based on year-to-date results. The company narrowed its comparable sales forecast. Management now expects growth of 2% to 3%, down from a previous high of 3.5%.
The earnings outlook improved despite the sales adjustment. BJ’s raised its full-year guidance to $4.30-$4.40 per share. This topped the prior range of $4.20-$4.35. Analysts expect $4.31 per share for the year.
Gross profit totaled $1.01 billion in the quarter. Merchandise margins remained stable compared to last year.
The company repurchased 905,000 shares during the quarter. The buyback totaled $87.3 million. This continues BJ’s strategy of returning capital to shareholders.
Stock performance reflected investor confidence in the results. The premarket gain followed the better-than-expected earnings report and improved guidance.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
