BJ’s Wholesale’s Q3 earnings beats Street but revenue misses

BJ’s Wholesale Club Holdings reported mixed results for its third quarter and also announced a stock repurchase program.

The membership-based warehouse retailer reported that its net income rose to $55.1 million, or 40 cents a share, in the quarter ended Nov. 2, from $54.4 million, or 39 cents a share, in the year-ago period. Adjusted earnings rose to 41 cents per share, beating analysts’ estimates by one cent.

Total revenue edged up 0.2% to $3.229 billion, below analysts’ estimates of $3.30 billion. Net sales rose 0.1% to $3.15 billion and membership fee income grew 7.1% to $76.5 million. 

Same-store sales increased 1.1%, below expectations.

We delivered solid margin improvement and continued earnings growth in the third quarter,” said Christopher J. Baldwin, chairman and CEO, BJ’s Wholesale Club. "We remain focused on executing against our strategic plan and transforming our business to be well-positioned for the long-term. The board's decision to authorize a stock repurchase program reflects the strength of our cash flow and confidence in our growth strategy and long-term outlook."

For 2019, BJ's lowered its sales outlook to approximately $12.9 billion from $12.9 billion to $13.2 billion and cut its same-store sales growth guidance to 1.3% to 1.5% from 1.5% to 2.5%.  It also while narrowing its EPS outlook to $1.44 to $1.48 from $1.42 to $1.50. 

In other news, the retailer set a $250 million stock repurchase program, expiring January 2022.  

Headquartered in Westborough, Massachusetts, BJ's operates 219 clubs and 144 BJ's Gas locations in 17 states.