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 Q1 Earnings Beat Estimates as Membership Income Jumps 10%
Read MoreHide Full Article
Key Takeaways
BJ posted Q1 adjusted EPS of $1.10 on $5.66B revenues, topping consensus as comps rose 6.3%.
BJ membership fee income climbed 9.9% to $132.4M; renewal stayed 90%, and members topped 8M.
BJ said Texas openings are among its strongest, with membership 33% ahead of plan; digital comps surged 28%.
BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) delivered first-quarter fiscal 2026 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Results reflected strong membership trends, robust fuel demand, accelerating digital engagement and continued traffic growth. Management highlighted momentum in higher-tier memberships, strength in newly opened clubs and continued market-share gains, particularly in fuel and digitally enabled sales.
BJ’s First-Quarter Insights
BJ’s Wholesale Club reported adjusted earnings of $1.10 per share, which beat the Zacks Consensus Estimate of $1.04. However, the metric declined 3.5% from the year-ago quarter due to lapping a prior-year tax benefit tied to stock-based compensation.
This operator of membership warehouse clubs generated total revenues of $5,661.5 million, which increased 9.9% year over year and surpassed the Zacks Consensus Estimate of $5,435 million. Net sales climbed 9.9% to $5,529.1 million, while membership fee income rose 9.9% to $132.4 million, driven by strong member acquisition, retention and higher-tier membership penetration. We had expected membership fee income growth of 7%.
Total comparable club sales increased 6.3% year over year in the reported quarter. Excluding gasoline sales, comparable club sales improved 1.5%, reflecting healthy merchandise demand and traffic growth. However, it came below our estimate of 1.7% growth. Digitally enabled comparable sales jumped 28%, following two-year stacked growth of 63%, supported by higher adoption of curbside pickup, same-day delivery and ExpressPay services.
Management noted that fuel volumes remained particularly strong during the quarter, with comparable gasoline gallons increasing nearly 8%, significantly outperforming the broader market. The company also highlighted positive traffic growth and market-share gains across its business.
BJ's Wholesale Club Holdings, Inc. Price, Consensus and EPS Surprise
Gross profit increased to $1.03 billion in the first quarter from $969.5 million in the year-ago period. However, the merchandise gross margin rate, excluding gasoline sales and membership fee income, declined nearly 10 basis points year over year. The decrease was primarily due to continued investments in pricing, partially offset by tariff refund benefits recognized during the quarter.
Operating income rose 2.1% year over year to $207.9 million. Adjusted EBITDA increased 4.3% to $298.1 million, reflecting solid operational execution and continued leverage from membership growth.
Selling, general and administrative expenses jumped to $806 million from $760.9 million in the prior-year quarter. The increase mainly reflected higher labor, occupancy and operational costs associated with new club and gas station openings, along with higher depreciation expenses due to an increase in owned clubs.
BJ’s Membership Strength & Expansion Efforts
BJ’s Wholesale Club continued to expand the size and quality of its membership base during the quarter. Membership fee income reached an all-time high, supported by strong acquisition trends, retention and higher-tier membership penetration. The company maintained a 90% tenured membership renewal rate and reported more than 8 million members.
During the quarter, BJ’s opened one new club and six new gas stations, including its first club in Texas, expanding operations into its 22nd state. In May, the company opened three additional Texas clubs and indicated that membership in the Dallas-Fort Worth market is running well ahead of expectations. Management stated that the Texas openings are among the strongest in the company’s history, with membership tracking 33% ahead of plan.
The company reiterated plans to open 25-30 new clubs over fiscal 2027 and 2028 combined while remaining on track to open 12 clubs in fiscal 2026.
BJ’s Wholesale Financial Snapshot
BJ’s Wholesale Club ended the quarter with cash and cash equivalents of $27.8 million, while total debt stood at $774.2 million. Stockholders’ equity totaled $2,126.3 million.
Net cash provided by operating activities was $140 million in the quarter. Adjusted free cash flow came in at negative $42 million due to elevated capital expenditures tied to club expansion and distribution network investments. Capital expenditures totaled $182 million during the quarter.
During the first quarter, BJ’s repurchased approximately 2.1 million shares for $206.6 million. About $545 million remained available under the company’s existing repurchase authorization at quarter-end.
Here’s What BJ Guided
BJ’s Wholesale Club reiterated its fiscal 2026 guidance. Management continues to expect comparable club sales, excluding gasoline sales, to increase 2-3% year over year. Adjusted earnings per share are still projected in the range of $4.40-$4.60 compared with $4.40 reported in fiscal 2025.
The company also continues to expect capital expenditures of roughly $800 million in fiscal 2026, reflecting ongoing investments in new club openings and supply-chain enhancements, including its new ambient distribution center project.
Management emphasized confidence in the company’s long-term strategy, highlighting continued investments in value, membership growth, digital capabilities and expansion into new markets despite a dynamic consumer environment.
Shares of this Zacks Rank #3 (Hold) company have fallen 10.5% over the past three months compared with the industry’s decline of 13.3%.
The Zacks Consensus Estimate for The Chef's Warehouse’s current financial-year sales and earnings indicates growth of 8.3% and 24.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Ross Stores, Inc. (ROST - Free Report) is the largest off-price apparel and home fashion chain in the United States. ROST sports a Zacks Rank #1.
The consensus estimate for Ross Stores’ current fiscal-year sales and earnings implies growth of 7.9% and 15%, respectively, from the year-ago reported figures. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average.
Tyson Foods, Inc. (TSN - Free Report) operates as a leading protein company producing chicken, beef, pork and prepared food products. TSN currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales calls for growth of 4.5%, while the consensus mark for earnings indicates a 0.5% increase from the year-ago reported figures. TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.
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 Q1 Earnings Beat Estimates as Membership Income Jumps 10%
Key Takeaways
BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) delivered first-quarter fiscal 2026 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Results reflected strong membership trends, robust fuel demand, accelerating digital engagement and continued traffic growth. Management highlighted momentum in higher-tier memberships, strength in newly opened clubs and continued market-share gains, particularly in fuel and digitally enabled sales.
BJ’s First-Quarter Insights
BJ’s Wholesale Club reported adjusted earnings of $1.10 per share, which beat the Zacks Consensus Estimate of $1.04. However, the metric declined 3.5% from the year-ago quarter due to lapping a prior-year tax benefit tied to stock-based compensation.
This operator of membership warehouse clubs generated total revenues of $5,661.5 million, which increased 9.9% year over year and surpassed the Zacks Consensus Estimate of $5,435 million. Net sales climbed 9.9% to $5,529.1 million, while membership fee income rose 9.9% to $132.4 million, driven by strong member acquisition, retention and higher-tier membership penetration. We had expected membership fee income growth of 7%.
Total comparable club sales increased 6.3% year over year in the reported quarter. Excluding gasoline sales, comparable club sales improved 1.5%, reflecting healthy merchandise demand and traffic growth. However, it came below our estimate of 1.7% growth. Digitally enabled comparable sales jumped 28%, following two-year stacked growth of 63%, supported by higher adoption of curbside pickup, same-day delivery and ExpressPay services.
Management noted that fuel volumes remained particularly strong during the quarter, with comparable gasoline gallons increasing nearly 8%, significantly outperforming the broader market. The company also highlighted positive traffic growth and market-share gains across its business.
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 $1.03 billion in the first quarter from $969.5 million in the year-ago period. However, the merchandise gross margin rate, excluding gasoline sales and membership fee income, declined nearly 10 basis points year over year. The decrease was primarily due to continued investments in pricing, partially offset by tariff refund benefits recognized during the quarter.
Operating income rose 2.1% year over year to $207.9 million. Adjusted EBITDA increased 4.3% to $298.1 million, reflecting solid operational execution and continued leverage from membership growth.
Selling, general and administrative expenses jumped to $806 million from $760.9 million in the prior-year quarter. The increase mainly reflected higher labor, occupancy and operational costs associated with new club and gas station openings, along with higher depreciation expenses due to an increase in owned clubs.
BJ’s Membership Strength & Expansion Efforts
BJ’s Wholesale Club continued to expand the size and quality of its membership base during the quarter. Membership fee income reached an all-time high, supported by strong acquisition trends, retention and higher-tier membership penetration. The company maintained a 90% tenured membership renewal rate and reported more than 8 million members.
During the quarter, BJ’s opened one new club and six new gas stations, including its first club in Texas, expanding operations into its 22nd state. In May, the company opened three additional Texas clubs and indicated that membership in the Dallas-Fort Worth market is running well ahead of expectations. Management stated that the Texas openings are among the strongest in the company’s history, with membership tracking 33% ahead of plan.
The company reiterated plans to open 25-30 new clubs over fiscal 2027 and 2028 combined while remaining on track to open 12 clubs in fiscal 2026.
BJ’s Wholesale Financial Snapshot
BJ’s Wholesale Club ended the quarter with cash and cash equivalents of $27.8 million, while total debt stood at $774.2 million. Stockholders’ equity totaled $2,126.3 million.
Net cash provided by operating activities was $140 million in the quarter. Adjusted free cash flow came in at negative $42 million due to elevated capital expenditures tied to club expansion and distribution network investments. Capital expenditures totaled $182 million during the quarter.
During the first quarter, BJ’s repurchased approximately 2.1 million shares for $206.6 million. About $545 million remained available under the company’s existing repurchase authorization at quarter-end.
Here’s What BJ Guided
BJ’s Wholesale Club reiterated its fiscal 2026 guidance. Management continues to expect comparable club sales, excluding gasoline sales, to increase 2-3% year over year. Adjusted earnings per share are still projected in the range of $4.40-$4.60 compared with $4.40 reported in fiscal 2025.
The company also continues to expect capital expenditures of roughly $800 million in fiscal 2026, reflecting ongoing investments in new club openings and supply-chain enhancements, including its new ambient distribution center project.
Management emphasized confidence in the company’s long-term strategy, highlighting continued investments in value, membership growth, digital capabilities and expansion into new markets despite a dynamic consumer environment.
Shares of this Zacks Rank #3 (Hold) company have fallen 10.5% over the past three months compared with the industry’s decline of 13.3%.
Don’t Miss These Solid Bets
The Chef's Warehouse, Inc. (CHEF - Free Report) , a specialty food distributor serving restaurants, hotels and hospitality customers, 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 The Chef's Warehouse’s current financial-year sales and earnings indicates growth of 8.3% and 24.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Ross Stores, Inc. (ROST - Free Report) is the largest off-price apparel and home fashion chain in the United States. ROST sports a Zacks Rank #1.
The consensus estimate for Ross Stores’ current fiscal-year sales and earnings implies growth of 7.9% and 15%, respectively, from the year-ago reported figures. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average.
Tyson Foods, Inc. (TSN - Free Report) operates as a leading protein company producing chicken, beef, pork and prepared food products. TSN currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales calls for growth of 4.5%, while the consensus mark for earnings indicates a 0.5% increase from the year-ago reported figures. TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.