We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BJ's Wholesale Q4 Earnings Beat as Membership Strength Drives Growth
Read MoreHide Full Article
Key Takeaways
BJ's reported Q4 EPS of 96 cents, topping estimates, as revenues rose 5.6% to $5.58B.
BJ's saw membership fee income jump 10.9% and digitally enabled comparable sales surge 31%.
BJ expects 2%-3% comparable sales growth ex-gas in FY26 and plans 25-30 new clubs across 2025-2026.
BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) came up with fourth-quarter fiscal 2025 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate and improved year over year. The results reflected strength in membership trends, solid digital engagement and steady traffic growth. Management highlighted record membership levels and continued expansion of its club footprint, which helped drive performance during the quarter.
BJ’s Fourth-Quarter Insights
BJ’s Wholesale Club reported adjusted earnings of 96 cents per share, which beat the Zacks Consensus Estimate of 93 cents and increased 3.2% from the year-ago period. The improvement reflected disciplined cost management and steady operating momentum.
This operator of membership warehouse clubs generated total revenues of $5,575.4 million, which increased 5.6% year over year and topped the Zacks Consensus Estimate of $5,546 million. Net sales grew 5.5% to $5,445.6 million, while membership fee income rose 10.9% to $129.8 million, driven by strong member acquisition, retention and higher-tier membership penetration.
Total comparable club sales rose 1.6% year over year, falling short of our estimate of 2%. Excluding gasoline sales, comparable club sales improved 2.6%, reflecting solid traffic growth and strong member engagement. Digitally enabled comparable sales advanced 31%, building on two-year stacked growth of 57%, underscoring continued adoption of digital services such as buy-online-pickup-in-club, same-day delivery and ExpressPay.
BJ's Wholesale Club Holdings, Inc. Price, Consensus and EPS Surprise
Gross profit increased to $1,009.6 million from $949 million in the year-ago quarter. However, the merchandise gross margin rate (excluding gasoline sales and membership income) declined about 50 basis points year over year due to changes in merchandise mix.
Operating income came in at $178.1 million, down 0.2% from the prior-year quarter. Adjusted EBITDA increased 0.7% year over year to $266.5 million, reflecting steady operational execution.
SG&A expenses rose to $818.2 million from $758.2 million a year earlier. The increase mainly reflects higher labor, occupancy and operational costs tied to new club and gas station openings, as well as higher depreciation expenses due to a greater number of owned clubs.
BJ’s Membership Strength & Club Expansion
BJ’s Wholesale Club continues to expand the size and quality of its membership base. The company maintained a 90% tenured member renewal rate and reported strong growth in membership fee income, supported by the membership fee increase implemented in January 2025.
During the fourth quarter, the company opened seven new clubs and seven gas stations, bringing the total to 263 clubs and 199 gas stations across 21 states. Management remains focused on expanding its footprint, with plans to open 25-30 clubs over fiscal 2025 and 2026 combined.
BJ’s Wholesale Financial Snapshot
BJ’s Wholesale Club ended fiscal 2025 with cash and cash equivalents of $46.2 million, while long-term debt totaled $399.1 million. Stockholders’ equity stood at $2,197.7 million.
Net cash provided by operating activities for the quarter was $391 million, while adjusted free cash flow totaled about $189.9 million. The company continues to invest in expansion and infrastructure, including new distribution centers to support growth.
During the fourth quarter, BJ’s repurchased 1.26 million shares for approximately $117.7 million. For fiscal 2025, it bought back 2.6 million shares totaling $252.4 million, with $749.7 million remaining under its authorization.
Here’s What BJ Guided
For fiscal 2026, BJ’s Wholesale Club expects comparable club sales (excluding gasoline) to increase 2% to 3% year over year. Management anticipates adjusted earnings per share in the range of $4.40-$4.60 compared with $4.40 reported in fiscal 2025.
The company also expects capital expenditures of about $800 million, reflecting continued investments in club openings, supply-chain enhancements and its distribution network.
Shares of this Zacks Rank #3 (Hold) company have advanced 7.6% over the past three months compared with the industry’s rise of 13.2%.
The Zacks Consensus Estimate for Mama's Creations’ current financial-year sales and earnings indicates growth of 39.9% and 44.4%, respectively, from the prior-year reported levels. MAMA delivered a trailing four-quarter earnings surprise of 133.3%, on average.
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) , a leading off-price retailer of brand-name household products, currently carries a Zacks Rank #2 (Buy). OLLI has an average trailing four-quarter earnings surprise of 5.2%.
The Zacks Consensus Estimate for OLLI’s current financial-year sales and EPS suggests growth of 16.8% and 17.7%, respectively, from the year-ago reported numbers.
Boot Barn Holdings, Inc. (BOOT - Free Report) , the nation’s leading lifestyle retailer of western and work-related footwear, apparel and accessories, currently carries a Zacks Rank #2. BOOT has an average trailing four-quarter earnings surprise of 4.9%.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and EPS implies growth of 17.6% and 26%, respectively, from the year-ago reported numbers.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Shutterstock
BJ's Wholesale Q4 Earnings Beat as Membership Strength Drives Growth
Key Takeaways
BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) came up with fourth-quarter fiscal 2025 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate and improved year over year. The results reflected strength in membership trends, solid digital engagement and steady traffic growth. Management highlighted record membership levels and continued expansion of its club footprint, which helped drive performance during the quarter.
BJ’s Fourth-Quarter Insights
BJ’s Wholesale Club reported adjusted earnings of 96 cents per share, which beat the Zacks Consensus Estimate of 93 cents and increased 3.2% from the year-ago period. The improvement reflected disciplined cost management and steady operating momentum.
This operator of membership warehouse clubs generated total revenues of $5,575.4 million, which increased 5.6% year over year and topped the Zacks Consensus Estimate of $5,546 million. Net sales grew 5.5% to $5,445.6 million, while membership fee income rose 10.9% to $129.8 million, driven by strong member acquisition, retention and higher-tier membership penetration.
Total comparable club sales rose 1.6% year over year, falling short of our estimate of 2%. Excluding gasoline sales, comparable club sales improved 2.6%, reflecting solid traffic growth and strong member engagement. Digitally enabled comparable sales advanced 31%, building on two-year stacked growth of 57%, underscoring continued adoption of digital services such as buy-online-pickup-in-club, same-day delivery and ExpressPay.
BJ's Wholesale Club Holdings, Inc. Price, Consensus and EPS Surprise
BJ's Wholesale Club Holdings, Inc. price-consensus-eps-surprise-chart | BJ's Wholesale Club Holdings, Inc. Quote
A Look at BJ’s Margins
Gross profit increased to $1,009.6 million from $949 million in the year-ago quarter. However, the merchandise gross margin rate (excluding gasoline sales and membership income) declined about 50 basis points year over year due to changes in merchandise mix.
Operating income came in at $178.1 million, down 0.2% from the prior-year quarter. Adjusted EBITDA increased 0.7% year over year to $266.5 million, reflecting steady operational execution.
SG&A expenses rose to $818.2 million from $758.2 million a year earlier. The increase mainly reflects higher labor, occupancy and operational costs tied to new club and gas station openings, as well as higher depreciation expenses due to a greater number of owned clubs.
BJ’s Membership Strength & Club Expansion
BJ’s Wholesale Club continues to expand the size and quality of its membership base. The company maintained a 90% tenured member renewal rate and reported strong growth in membership fee income, supported by the membership fee increase implemented in January 2025.
During the fourth quarter, the company opened seven new clubs and seven gas stations, bringing the total to 263 clubs and 199 gas stations across 21 states. Management remains focused on expanding its footprint, with plans to open 25-30 clubs over fiscal 2025 and 2026 combined.
BJ’s Wholesale Financial Snapshot
BJ’s Wholesale Club ended fiscal 2025 with cash and cash equivalents of $46.2 million, while long-term debt totaled $399.1 million. Stockholders’ equity stood at $2,197.7 million.
Net cash provided by operating activities for the quarter was $391 million, while adjusted free cash flow totaled about $189.9 million. The company continues to invest in expansion and infrastructure, including new distribution centers to support growth.
During the fourth quarter, BJ’s repurchased 1.26 million shares for approximately $117.7 million. For fiscal 2025, it bought back 2.6 million shares totaling $252.4 million, with $749.7 million remaining under its authorization.
Here’s What BJ Guided
For fiscal 2026, BJ’s Wholesale Club expects comparable club sales (excluding gasoline) to increase 2% to 3% year over year. Management anticipates adjusted earnings per share in the range of $4.40-$4.60 compared with $4.40 reported in fiscal 2025.
The company also expects capital expenditures of about $800 million, reflecting continued investments in club openings, supply-chain enhancements and its distribution network.
Shares of this Zacks Rank #3 (Hold) company have advanced 7.6% over the past three months compared with the industry’s rise of 13.2%.
Don’t Miss These Solid Bets
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Mama's Creations’ current financial-year sales and earnings indicates growth of 39.9% and 44.4%, respectively, from the prior-year reported levels. MAMA delivered a trailing four-quarter earnings surprise of 133.3%, on average.
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) , a leading off-price retailer of brand-name household products, currently carries a Zacks Rank #2 (Buy). OLLI has an average trailing four-quarter earnings surprise of 5.2%.
The Zacks Consensus Estimate for OLLI’s current financial-year sales and EPS suggests growth of 16.8% and 17.7%, respectively, from the year-ago reported numbers.
Boot Barn Holdings, Inc. (BOOT - Free Report) , the nation’s leading lifestyle retailer of western and work-related footwear, apparel and accessories, currently carries a Zacks Rank #2. BOOT has an average trailing four-quarter earnings surprise of 4.9%.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and EPS implies growth of 17.6% and 26%, respectively, from the year-ago reported numbers.