Advertisement
11/17/2022

BJ’s continues momentum in Q3 as revenue jumps 12%; opening new club

Marianne Wilson
Editor-in-Chief
Marianne Wilson profile picture
Image
BJ’s Wholesale Club has opened its 234 club, in Wayne, N.J.

BJ's Wholesale Club Holdings Inc. reported third-quarter profit and revenue that topped expectations and raised its outlook as it continues to expand its footprint.

The membership-based warehouse club retailer reported that its net income rose to $129.9 million, or 95 cents a share, for the quarter ended Oct. 29, compared to $126.5 million, or 92 cents a share, in the year-ago period. Adjusted earnings per share came in at $0.99, beating estimates of $0.84.

Total revenue jumped 12.2% to $4.79 billion, topping estimates of $4.67 billion. Same-store sales excluding gasoline increased 5.3%, more than double what was expected. Membership fee income increased by 8.7% year-over-year to $99.5 million.

Inventories rose 19.8% from a year ago to $1.50 billion, after rising 33.2% in the second quarter.

“Our consistent focus on delivering value to our members at a time when they need it most will bolster our business for the future”
Bob Eddy, president and CEO, BJ’s Wholesale Club.

The company opened three locations during the quarter, including its first Indiana club. Its newest location, in Wayne, N.J., opens on November 18, giving it a total of 234 clubs in 18 states. It will be the retailer’s 24th location in New Jersey.

“Our consistent focus on delivering value to our members at a time when they need it most will bolster our business for the future,” said Bob Eddy, president and CEO, BJ’s Wholesale Club. “Our member base is growing in both size and quality. We are improving our merchandising to deliver amazing value. We are offering more convenience for our members through a great digital experience. We are expanding our footprint into new and existing markets.”

BJ’s noted that, while it expects continued merchandise margin rate pressure, it was raising its fiscal 2022 earnings guidance range to $3.70 to $3.80 per share from $3.50 to $3.60. It expects same-store sales growth of 5.0% to 5.5%, compared with Street estimates for 4.8% growth. 

“We are optimistic about the outlook on our business given the sustained strength in our grocery business and our gains in market share,” said Laura Felice, executive VP, CFO, BJ's Wholesale Club. “We remain confident that the strength of our core business and our intense focus on delivering value will continue to drive long-term growth.”

[Read More: BJ’s opens new headquarters]