BJ’s more than doubles Q4 profit, launches online EBT program

BJ’s Wholesale Club had a generally strong fourth quarter and is accepting federal benefit payments for online orders in select locations.

The warehouse club chain reported Q4 fiscal 2020 total revenues of $3.95 billion, up 14% from $3.47 billion in the prior-year quarter. Net income soared 130% to $95.89 million from $41.77 million. Adjusted earnings per share (EPS) rose 75% to $0.70 from $0.40, and same-store sales climbed 13% including gasoline sales. BJ's beat Wall Street projections with its adjusted EPS performance, but missed revenue forecasts despite growth.

BJ’s also announced it is now accepting federal EBT SNAP payments for SNAP-eligible items for online in-store pickup and curbside pickup orders in Florida and North Carolina. The retailer’s two-step checkout process for online EBT payment includes the option to check card balance and the ability to use multiple payment options.

Federal EBT SNAP benefits (popularly known as food stamps) are growing in acceptance as a form of payment for online purchases by an increasing number of retailers that sell grocery products, including Amazon and Walmart. 

“We’re committed to providing our members with essential products and fresh food for their families at an incredible value,” said Monica Schwartz, senior VP, chief digital officer, BJ’s Wholesale Club. “It’s never been more important to offer our members convenient shopping options and we’re thrilled to launch online EBT payment to give our members more flexibility to shop their way.”

For the full fiscal year 2020, BJ’s reported total revenues of $15.43 billion, up 17% year-over-year from $13.19 billion. Net income jumped 125% to $421.03 million from $187.18 million, and adjusted EPS rose 112% to $3.09 from $1.46. Same-store sales including gasoline sales increased 15.9%.

Given continued economic uncertainties related to the COVID-19 pandemic, consumer behavior and government stimulus, BJ’s did not issue guidance. Headquartered in Westborough, Mass., BJ's Wholesale Club Holdings Inc. currently operates 221 stores and 151 BJ's Gas locations in 17 states across the Eastern U.S.