BJ's Sees Club Sales, Digital Sales Rise in Q2

After a strong start to the year in Q1, BJ’s Wholesale Club has had another strong quarter during the 13-week period ended July 29.

In Q2, BJ’s saw comparable club sales, excluding gasoline sales, increase by 1.1% year-over-year, while digitally-enabled comparable sales growth was 15.0% year-over-year. Gross profit increased to $896.8 million in the second quarter from $860.0 million in the second quarter of fiscal 2022. Net income decreased to $131.3 million in Q2 compared to $141.0 million year-over-year.

“Our strong performance in the second quarter reflects our continued gains in membership, traffic and market share, driven by the great value that we provide our members every day,” said Bob Eddy, chairman and CEO of BJ’s Wholesale Club. “We continue to balance gross margins with investments in value and in growing the size and quality of our membership with an eye toward the future. I’m proud of the team’s execution in the quarter and believe that we are well-positioned for continued growth.”

Membership fee income increased by 5.0% year-over-year to $103.7 million in the second quarter. Merchandise gross margin rate increased by 90 basis points year-over-year, while earnings per diluted share and adjusted earnings per diluted share of $0.97.

Looking towards the remainder of the fiscal year, BJ’s leadership said it expects growth to continue as shoppers seek value at club chains.

“For fiscal 2023, we expect our comparable club sales, excluding the impact of gasoline sales, to increase approximately 2% year-over-year,” said Laura Felice, executive vice president, chief financial officer at BJ's Wholesale Club. “We expect our fiscal 2023 membership fee income to increase approximately 5% year-over-year and merchandise gross margins to improve by approximately 50 basis points year-over-year. Finally, we expect fiscal 2023 GAAP and adjusted EPS to be in the $3.80 to $3.92 range.”

Based in Marlborough, Mass., BJ’s Wholesale Club currently operates 238 clubs and 168 BJ's Gas locations in 19 states.