BJ's Wholesale Reports Q3 Sales Growth, But Comps Soften

Third quarter results at BJ’s Wholesale Club were a mixed bag as the retailer reported slight gains in revenue along with an increase in membership, but comparable store sales excluding gasoline were down slightly.

For the quarter ended October 28, total revenue was $4.9 billion, up 2.9% from total revenue of $4.8 billion in the comparable quarter the previous year. Adjusted net income in the quarter was down 3% to $131.8 million, with adjusted earnings per share off 1% to $0.98. Comparable club sales were down 0.1% when excluding gasoline sales. 

“Our advantaged model and strong value proposition continue to resonate with our members. During the third quarter, we posted accelerating membership growth, robust traffic gains and continued increases in market share. These gains continue to reinforce the underlying strength of our business and we remain confident in the long-term growth prospects of our Company,” said Bob Eddy, Chairman and Chief Executive Officer, BJ’s Wholesale Club. “I am proud of our team members for their continued dedication to our members during these dynamic times.”

Looking ahead, company officials said they remain confident in the company’s ability to maintain the momentum in its traffic and market share gains. 

“We also continue to navigate shifts in consumer behavior driven by the broader macroeconomic environment. As a result, we are refining our sales outlook for the rest of the year,” said Laura Felice, executive vice president, chief financial officer, BJ's Wholesale Club. “We expect our comparable club sales, excluding the impact of gasoline sales, to range from a 2% decrease to 1% increase year-over-year in the fourth quarter fiscal 2023, and to increase by 1.0% to 1.8% year-over-year for the full year fiscal 2023. Our outlook on fiscal 2023 GAAP and adjusted EPS remains unchanged in the $3.80 to $3.92 range.”