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BJ's Wholesale Club Fiscal Second-Quarter Results Top Views; Raises Full-Year Earnings Outlook

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BJ's Wholesale Club Fiscal Second-Quarter Results Top Views; Raises Full-Year Earnings Outlook

BJ's Wholesale Club's (BJ) fiscal second-quarter results came in ahead of Wall Street's estimates, prompting the warehouse club operator to lift its full-year earnings outlook.

The company on Friday reported adjusted earnings of $1.36 a share for the quarter ended Aug. 1, up from $1.14 the year before, exceeding the FactSet-polled consensus of $1.17. Overall revenue climbed 16% to $6.23 billion, topping the Street's view for $5.97 billion.

Comparable club sales, excluding the impact of gasoline sales, increased 3.1% and were ahead of the market's forecast for a rise of 2.6%. The stock gained 4.7% in Friday trading.

"Our second-quarter results reflect strong execution and continued momentum in the business," Chief Financial Officer Laura Felice said in a statement. "We delivered solid profitability, grew membership fee income, and outperformed on gas -- all of which enabled us to raise our full year adjusted EPS guidance."

BJ's now anticipates adjusted EPS in the range of $4.60 to $4.80 for fiscal 2026, up from its previous guidance of $4.40 to $4.60. Comparable club sales, excluding gasoline, are still pegged to increase by 2% to 3%. The current average analyst estimate is for non-GAAP EPS of $4.53 and same-store sales growth of 2.5%.

Last week, Deutsche Bank said in an emailed client note that it expected BJ's to deliver a "modest" second-quarter beat, while the brokerage lifted its same-store sales estimate for the warehouse club operator to 2.6%.

"We delivered a strong second quarter, coming in ahead of our expectations across sales and profitability, with strong membership momentum," BJ's Chief Executive Bob Eddy said. "Our value proposition continued to resonate with members in our clubs and at our gas stations."

Members continued to show up at the company's gas stations amid elevated prices during the quarter, Eddy said during an earnings call, according to a FactSet transcript.

"Comp gallons were up double digits, accelerating from the strong results we saw in (the first quarter) and a clear signal of the share we continue to take," Eddy said on the call. "Strong volume growth, combined with favorable pullback from peak gas prices drove fuel profit dollars ahead of plan, which was a meaningful contributor to our overall results."

US retail gasoline prices averaged $4.1092 per gallon on Friday, compared with $4.0776 a week ago and $4.0190 a month ago, according to data from AAA, a motoring and leisure travel membership organization that tracks fuel prices in the US.

On Thursday, Walmart (WMT) reported fiscal second-quarter results, with US comparable sales growth slowing more than Wall Street expected amid a pharmacy-related headwind. Target (TGT) lifted its full-year outlook earlier in the week as tariff refunds helped double the retailer's fiscal second-quarter earnings year over year.

Warehouse chain Costco Wholesale (COST) is scheduled to publish its latest financial results next month.

Price: $95.29, Change: $+3.99, Percent Change: +4.37%

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