BJ’s Wholesale Club Q2 revenues, sales decline
BJ’s Wholesale Club Holdings Inc. reported drops in profit and net sales for the second quarter of fiscal 2023.
The warehouse club retailer posted net income of $131.2 million, down 7% from $141 million the second quarter of fiscal 2023. Earnings per share declined to $0.97 from $1.03, and total revenues (net sales plus membership income) fell 3% to $4.96 billion from $5.1 billion.
According to BJ’s, the primary factor eating into its profits was increased labor and occupancy costs as a result of new store and gas station openings. Bob Eddy, chairman and CEO, BJ’s Wholesale Club, put a positive spin on the retailer’s quarterly results.
“Our strong performance in the second quarter reflects our continued gains in membership, traffic and market share, driven by the great value that we provide our members every day,” said Eddy. “We continue to balance gross margins with investments in value and in growing the size and quality of our membership with an eye toward the future. I’m proud of the team’s execution in the quarter and believe that we are well-positioned for continued growth.”
Laura Felice, executive VP, CFO, BJ's Wholesale Club, was cautiously optimistic in her comments on the retailer’s outlook for the full fiscal year (ending Feb. 3, 2024).
“As we look ahead, we remain confident in our ability to maintain the momentum in our traffic and market share gains due to our unrelenting focus on value. However, we also continue to navigate shifts in consumer behavior driven by the broader macroeconomic environment. As a result, we are refining our outlook for the rest of the fiscal year,” said Felice. “For fiscal 2023, we expect our comparable club sales, excluding the impact of gasoline sales, to increase approximately 2% year-over-year. We expect our fiscal 2023 membership fee income to increase approximately 5% year-over-year and merchandise gross margins to improve by approximately 50 basis points year-over-year. Finally, we expect fiscal 2023 GAAP and adjusted EPS to be in the $3.80 to $3.92 range.”
Headquartered in Marlborough, Mass., BJ’s opened in 1984 and currently operates 238 club stores and 168 BJ's Gas locations in 19 states.