BJ’s Wholesale Club kicked off fiscal 2023 with record-setting first quarter net income and adjusted EBITDA, according to the club chain’s latest numbers.
For the 13-week period ended April 29, the Marlborough, Mass.-based retailer’s comparable club sales, excluding gasoline sales, increased by 5.7% year-over-year. Net income increased to $116.1 million in the first quarter of fiscal 2023 compared to $112.5 million in the first quarter of fiscal 2022. Adjusted EBITDA increased 16.4% year-over-year to $257.0 million.
Gross profit increased to $880.0 million in the first quarter of fiscal 2023 from $790.6 million in the first quarter of fiscal 2022. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, increased 100 basis points over the same quarter of fiscal 2022. Merchandise margins were impacted by inflation, moderated supply chain costs and improved inventory management.
“We reported a record first quarter in net income and adjusted EBITDA, demonstrating the power of our business model and the warehouse club channel,” said Bob Eddy, president and CEO of BJ’s Wholesale Club. “We drove topline growth bolstered by robust traffic and share gains. We also made significant improvements on our merchandise margins largely due to waning supply chain pressures and moderating inflation. We remain focused on our strategic priorities and believe that we are well-positioned to maximize long-term shareholder value.”
E-commerce was a success for the retailer in the first quarter of 2023 as digitally-enabled comparable sales growth was 19.0% year-over-year. Membership fee income increased by 6.1% year-over-year to $102.5 million.
In the quarter, the company opened two new clubs and three new gas stations, and also launched its co-branded credit card with Capital One. The program offers up to 5% rewards on in-club earnings and up to 2% rewards on out-of-club earnings as well as up to 15 cents off/gallon at BJ’s Gas.
“Our fiscal 2023 outlook on our business remains unchanged given the sustained strength in our grocery business and our gains in market share,” said Laura Felice, EVP and chief financial officer at BJ's Wholesale Club. “We are confident that the strength of our core business and our intense focus on delivering value will continue to drive long-term growth."