BJ's Wholesale Club says it is on solid footing for the back half of the year

StevenStarr73

BJ's Wholesale Club Holdings (NYSE:BJ [https://seekingalpha.com/symbol/BJ]) traded slightly lower in early action on Friday after the warehouse club chain posted a mixed Q2 earnings report.

Total comparable club sales decreased by 0.3% during the quarter due to declining retail prices of fuel. Excluding the impact of gasoline sales, comparable club sales increased by 2.3%. Top-line revenue of $5.38 billion fell short of the consensus estimate by $100 million.

Membership fee income increased 9.0% year-over-year to $123.3 million in Q2. The increase was primarily driven by strength in membership acquisition, retention, and higher-tier membership penetration across both new and existing clubs, as well as the increase in annual membership fees, which became effective in January 2025.

Merchandise gross margin rate increased by 20 basis points compared to the first six months of fiscal 2024. The company noted that it continues to manage the business to drive profitable growth across the broader merchandise assortment. Operating income was up 6.3% to $216.5 million. Non-GAAP EPS was reported at $1.14 vs. $1.09 consensus and $1.09 a year ago. Adjusted EBITDA rose 8.0% to $303.9 million.

"Our business model continues to perform and build upon momentum, as we grow membership and gain market share even in a dynamic environment. We enter the back half of the year on solid footing and confident in our ability to deliver strong results," stated CEO Bob Eddy.

Looking ahead, BJ's (NYSE:BJ [https://seekingalpha.com/symbol/BJ]) sees comparable club sales, excluding the impact of gasoline sales, increasing 2.0% to 3.5% year-over-year for the full year. Adjusted EPS is seen landing in a range from $4.20 to $4.35 (midpoint $4.275) vs. $4.30 consensus.

Shares of BJ's (BJ [https://seekingalpha.com/symbol/BJ]) slipped 0.5% in premarket trading to $106.00 vs. the 52-week range of $76.33 to $121.10. The warehouse club stock is still up more than 18% on a year-to-date basis.

MORE ON BJ’S WHOLESALE CLUB

* BJ's Wholesale Club Holdings: Positive Earnings Growth Outlook (Rating Upgrade) [https://seekingalpha.com/article/4796756-bjs-wholesale-club-holdings-positive-earnings-growth-outlook-rating-upgrade]
* BJ’s Wholesale Club reports mixed Q2 results; updates FY25 outlook [https://seekingalpha.com/news/4488260-bjs-wholesale-club-reports-mixed-q2-results-updates-fy25-outlook]
* BJ’s Wholesale Club Q2 2026 Earnings Preview [https://seekingalpha.com/news/4487998-bj-s-wholesale-club-q2-2026-earnings-preview]
* Seeking Alpha’s Quant Rating on BJ’s Wholesale Club [https://seekingalpha.com/symbol/BJ/ratings/quant-ratings]
* Historical earnings data for BJ’s Wholesale Club [https://seekingalpha.com/symbol/BJ/earnings]