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BJ's Wholesale (BJ) Rides on Membership Surge & Digital Drive
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In the ever-evolving retail landscape, BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) stands as a testament to the significance of adaptability and innovation. Recognizing these as pivotal elements for success, the company has consistently expanded its membership base, elevated digital capabilities and pursued operational excellence, creating a foundation for enduring growth.
BJ's Wholesale Club places a premium on delivering quality products at competitive prices, reinforcing its position in the industry. The strategic approach involves refining product assortments, expediting club openings, expanding delivery services and crafting a winning formula that fortifies the company's market standing.
Strategies Unveiled
BJ's Wholesale Club’s commitment to bolstering marketing and merchandising capabilities, coupled with its foray into high-demand categories and expansion of its own-brand portfolio, has yielded remarkable results. It has played a pivotal role in driving membership signups and renewals, resulting in a notable surge in membership fee income.
In the fourth quarter of fiscal 2023, membership fee income witnessed a year-over-year increase of 6.5%, fueled by strong renewal rates and successful membership acquisition. We foresee a sustained improvement in membership fee income as new club openings ramp up. For fiscal 2024 and 2025, we expect membership fee income to increase at a rate of approximately 6.3% and 6%.
Image Source: Zacks Investment Research
BJ's Wholesale Club's focus on expanding digital capabilities is another key aspect of its growth trajectory. Offering members convenient options such as same-day delivery, curbside pick-up and buy online and pick up in-club, the company ensures an engaging and seamless digital shopping experience. A robust digital portfolio, encompassing platforms like Bjs.com, BerkleyJensen.com, Wellsleyfarms.com, and the BJ’s mobile app, underscores the commitment to digital excellence.
Management believes that digitally engaged members have higher average baskets and make more trips per year than members who shop in-club only. Digitally enabled comparable sales rose 28% in the fourth quarter of fiscal 2023. Clubs fulfill approximately 90% of digitally enabled sales.
Conclusion
BJ's Wholesale Club's growth strategies, effective price management, positive membership trends and digitization efforts are anticipated to continue supporting comparable sales trends. The company aims for mid-single-digit revenue growth and high-single to low-double-digit earnings per share increases. Its long-term target also indicates low-to-mid single-digit comparable sales growth, excluding gasoline sales.
This Zacks Rank #3 (Hold) stock has risen 13.7% in the past three months compared with the industry’s growth of 3.6%.
3 Picks You Can’t Miss Out On
Here, we have highlighted three better-ranked stocks, namely Sprouts Farmers Market (SFM - Free Report) , Performance Food Group Company (PFGC - Free Report) and Tractor Supply Company (TSCO - Free Report) .
The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and earnings suggests growth of around 8.1% and 7.4%, respectively, from the year-ago reported numbers.
Performance Food Group, one of the largest food and foodservice distribution companies in North America, currently carries a Zacks Rank #2. PFGC has a trailing four-quarter earnings surprise of 4.8%, on average.
The Zacks Consensus Estimate for Performance Food Group’s current financial-year sales and earnings suggests growth of around 3.1% and 9.8%, respectively, from the year-ago reported numbers.
Tractor Supply, which operates as a rural lifestyle retailer in the United States, currently carries a Zacks Rank #2. Tractor Supply has a trailing four-quarter earnings surprise of 2.7%, on average.
The Zacks Consensus Estimate for Tractor Supply’s current financial-year sales and earnings suggests growth of 3% and 2.1%, respectively, from the year-ago reported numbers.
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BJ's Wholesale (BJ) Rides on Membership Surge & Digital Drive
In the ever-evolving retail landscape, BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) stands as a testament to the significance of adaptability and innovation. Recognizing these as pivotal elements for success, the company has consistently expanded its membership base, elevated digital capabilities and pursued operational excellence, creating a foundation for enduring growth.
BJ's Wholesale Club places a premium on delivering quality products at competitive prices, reinforcing its position in the industry. The strategic approach involves refining product assortments, expediting club openings, expanding delivery services and crafting a winning formula that fortifies the company's market standing.
Strategies Unveiled
BJ's Wholesale Club’s commitment to bolstering marketing and merchandising capabilities, coupled with its foray into high-demand categories and expansion of its own-brand portfolio, has yielded remarkable results. It has played a pivotal role in driving membership signups and renewals, resulting in a notable surge in membership fee income.
In the fourth quarter of fiscal 2023, membership fee income witnessed a year-over-year increase of 6.5%, fueled by strong renewal rates and successful membership acquisition. We foresee a sustained improvement in membership fee income as new club openings ramp up. For fiscal 2024 and 2025, we expect membership fee income to increase at a rate of approximately 6.3% and 6%.
Image Source: Zacks Investment Research
BJ's Wholesale Club's focus on expanding digital capabilities is another key aspect of its growth trajectory. Offering members convenient options such as same-day delivery, curbside pick-up and buy online and pick up in-club, the company ensures an engaging and seamless digital shopping experience. A robust digital portfolio, encompassing platforms like Bjs.com, BerkleyJensen.com, Wellsleyfarms.com, and the BJ’s mobile app, underscores the commitment to digital excellence.
Management believes that digitally engaged members have higher average baskets and make more trips per year than members who shop in-club only. Digitally enabled comparable sales rose 28% in the fourth quarter of fiscal 2023. Clubs fulfill approximately 90% of digitally enabled sales.
Conclusion
BJ's Wholesale Club's growth strategies, effective price management, positive membership trends and digitization efforts are anticipated to continue supporting comparable sales trends. The company aims for mid-single-digit revenue growth and high-single to low-double-digit earnings per share increases. Its long-term target also indicates low-to-mid single-digit comparable sales growth, excluding gasoline sales.
This Zacks Rank #3 (Hold) stock has risen 13.7% in the past three months compared with the industry’s growth of 3.6%.
3 Picks You Can’t Miss Out On
Here, we have highlighted three better-ranked stocks, namely Sprouts Farmers Market (SFM - Free Report) , Performance Food Group Company (PFGC - Free Report) and Tractor Supply Company (TSCO - Free Report) .
Sprouts Farmers, a renowned grocery retailer, holds a Zacks Rank #2 (Buy). SFM has a trailing four-quarter earnings surprise of 9.2%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and earnings suggests growth of around 8.1% and 7.4%, respectively, from the year-ago reported numbers.
Performance Food Group, one of the largest food and foodservice distribution companies in North America, currently carries a Zacks Rank #2. PFGC has a trailing four-quarter earnings surprise of 4.8%, on average.
The Zacks Consensus Estimate for Performance Food Group’s current financial-year sales and earnings suggests growth of around 3.1% and 9.8%, respectively, from the year-ago reported numbers.
Tractor Supply, which operates as a rural lifestyle retailer in the United States, currently carries a Zacks Rank #2. Tractor Supply has a trailing four-quarter earnings surprise of 2.7%, on average.
The Zacks Consensus Estimate for Tractor Supply’s current financial-year sales and earnings suggests growth of 3% and 2.1%, respectively, from the year-ago reported numbers.