BJ’s earnings top Street, affirms outlook; tariffs ‘may drive prices higher’
BJ’s Wholesale Club Holdings reported first-quarter earnings that easily topped Street expectations even as its sales fell short.
On the company's earnings call, CEO Bob Eddy said that BJ’s is less impacted by imports than many of our competitors, and that "tariffs aren’t new to us." He noted that BJ's has strong capabilities in areas like analytics and input cost tracking, "tools we’ve used in past disruptions and are applying with discipline today." But he also recognized tariff pressures.
"While upward pressure on costs may drive prices higher, we are doing everything possible to minimize the impact to our members," he told analysts.
The membership-based warehouse retailer reported that its income rose $149.77 million, or $1.13 a share, for the quarter ended May 3, from $111.02 million, or $0.83 a share, in the year-ago quarter. Adjusted earnings were $1.14 a share, ahead of analysts’ estimates of $0.92 a share.
Total revenue rose to $5.15 billion from $4.92 billion last year. Analysts were looking for revenue of $5.19 billion.
Comparable club sales increased by 1.6%. Comp club sales, excluding gasoline sales, increased by 3.9%, led by traffic growth. Digitally enabled comp sales rose 35%, reflecting two-year stacked comp growth of 56%.
Membership fee income rose 8.1% to $120.4 million. (BJ’s raised its annual membership fee at the beginning of 2025.)
“We reported a strong start to the year, demonstrating the power of our model and continued momentum in our long-term growth priorities,” Eddy stated in the earnings release. “Delivering great value is essential in today’s environment, and I am proud of our team members who remain committed to taking care of the families who depend on us.”
BJ’s opened five new clubs during the quarter as it continues to grow its presence in existing markets and also enter new ones. It plans to add 25 to 30 locations during the next two fiscal years, with the openings including its entry into Texas, with several locations in the Dallas-Fort Worth area starting in early 2026.
Based on “what we know today,”, BJ’s said it was leaving its fiscal 2025 guidance unchanged, and would continue to evaluate as the year progresses. The company expects adjusted earnings in the range of $4.10 to $4.30 a share and comparable-club sales, excluding the impact of gasoline sales, to increase 2% to 3.5%.
“As we look to fiscal 2025, we are confident in our team, our positioning in the marketplace and the growth drivers that are within our control. We will remain focused on executing against our long-term priorities to drive continued traffic and market share gains,” said VP and CFO Laura Felice.
BJ’s ended the quarter with a total of 255 clubs and 190 BJ's Gas locations in 21 states.
