BJ’s beats Street on revenues, profits in Q2
BJ’s Wholesale Club Holdings exceeded Wall Street projections in a strong second quarter of fiscal 2024.
The membership warehouse club retailer posted net income of $145 million, or $1.08 a share, for the second quarter ended May 4, 2024, up 10% from $131.3 million, or $0.97 a share, in the year-ago period.
Adjusted earnings came to $1.09 a share, 8% higher than the $1.01 per share analysts had predicted. Total revenues increased 5% to $5.21 billion from $4.9 billion, 1% ahead of analyst projections of $5.15 billion. Same-store sales rose 3.1% compared to a 1.1% increase in the same quarter the prior year.
Membership-fee income rose 9.1% to $113.1 million from $103.7 million.
"Our second quarter was marked by robust membership, accelerating traffic and unit growth, and a fast-tracking digital business, which led to strong performance in the quarter," said Bob Eddy, chairman and CEO, BJ’s Wholesale Club. "This was our 10th consecutive quarter of traffic growth. We are driving healthy membership expansion across both existing and new clubs. Our compelling value proposition is resonating with our members, and we believe our results demonstrate the meaningful progress we are making on our long-term strategic initiatives."
Looking ahead, BJ’s reaffirmed guidance for fiscal 2024 comparable store sales, excluding the impact of gasoline sales, to increase 1% to 2% year-over-year, with traffic and unit growth as well as an expected strong perishables business likely driving the company to the higher end of the range.
[READ MORE: BJ’s continues push into Southeast, Midwest with new locations — here’s where]
In addition, BJ’s continues to expect its fiscal 2024 (ending Feb. 1, 2025) adjusted EPS to range from $3.75 to $4.00, with long-term investments potentially driving it to the low end of that range. The company also expects 2024 merchandise gross margins to remain approximately flat year-over-year.
"Our business model and long-term strategies have allowed us to invest in our value proposition to help our members stretch their dollar,” said Eddy.
Headquartered in Marlborough, Mass., BJ’s launched operations in New England in 1984 and currently operates 244 clubs and 178 BJ's Gas locations in 20 states.
