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Research Alert: Bj: Mixed Quarter From Slower Comp Sales Growth And More Reinvestments

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

BJ delivered mixed Apr.-Q results, with adjusted EPS of $1.10 (-3% Y/Y) beating consensus by $0.07, but comparable sales (ex-fuel) growing just 1.5%, the slowest pace in roughly two years. Revenue of $5.66B (+10%) beat by $232M, though mainly due to higher gas prices rather than core business strength, as retail gas prices climbed nearly 50% during the quarter. Membership metrics remain robust, with fee income rising 9.9% to $132.4M, led by strong member acquisition, retention, and higher-tier penetration across clubs. BJ maintained FY 27 (Jan.) guidance of 2.0%-3.0% comp sales growth and $4.40-$4.60 adjusted EPS (vs. consensus of $4.52). We think elevated gas prices and egg deflation weighed on in-store sales this quarter. Operating margin fell 30 bps to 3.7% as expected reinvestments in pricing and accelerated new club openings create near-term headwinds. The company balanced growth investments with $206.6M in share repurchases while planning ~$800M capex for new clubs and distribution network enhancements.

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