BJ’s Wholesale Club tops Street in record-breaking Q2
BJ’s Wholesale Club Holdings Inc. beat analyst expectations as it reported its best-ever earnings in the second quarter of fiscal 2022.
Total revenues rose 22% year-over-year to $5.1 billion from $4.2 billion. Adjusted net income increased 27% to $141 million from $111 million in the second quarter of fiscal 2021, while adjusted earnings per share (EPS) grew 29% to 1.06 from $0.82.
Total comparable club sales increased by 19.8% in the second quarter of fiscal 2022 compared to the second quarter of fiscal 2021. Excluding the impact of gasoline sales, comparable club sales increased by 7.6% in the second quarter of fiscal 2022 compared to the second quarter of fiscal 2021. Total comparable club sales increased by 17.2% in the first half of fiscal 2022 compared to the first half of fiscal 2021. Excluding the impact of gasoline sales, comparable club sales increased by 5.9% in the first half of fiscal 2022 compared to the first half of fiscal 2021.
Laura Felice, executive VP, CFO, BJ's Wholesale Club, was bullish in her comments on BJ’s outlook for the full fiscal year.
“Our outlook on the business is strong given the sustained strength in our grocery business and our gains in market share,” said Felice. “We expect fiscal year 2022 comparable club sales growth, excluding the impact of gasoline sales, to be in the 4%-5% range, up from our original guidance of low single digit. While we expect continued merchandise margin rate pressure, we also expect fiscal year 2022 EPS to be in the $3.50 to $3.60 range, up from our original guidance of approximately $3.25. We remain confident that the strength of our core business and our intense focus on delivering value will continue to drive long-term growth.”
Bob Eddy, president and CEO, BJ’s Wholesale Club, also expressed confidence in the retailer’s continuing performance/
“Our strong results in the second quarter were led by gains in traffic and market share as we continued to deliver tremendous value across virtually every aspect of our business,” said Eddy. “Our relentless focus on investing in our long-term initiatives has put us in a place to capitalize on current trends and deliver this strong performance. Our member base is growing in both quality and size. We are improving our merchandising to offer more value. We are growing our digital business, offering more convenience and optionality for our members. We are expanding our footprint into new and existing markets with success. Our business model is designed to work well in the current consumer environment where value is king and we believe we are well-positioned for growth by doing what we do best – delivering great value to our members.”
BJ’s Wholesale Club expanding
The retailer is opening four new clubs as the next phase of its 2022 development plans, including locations in New Albany, Ohio; Wayne, N.J.; Midlothian, Va.; and Noblesville, Ind. All the new clubs will feature a BJ’s Gas station. The Indiana store will mark BJ’s expansion into its 18th state.
Headquartered in Marlborough, Mass., BJ’s Wholesale Club Holdings Inc. currently operates 229 clubs and 160 BJ's Gas locations in 17 states.