Comp Sales, High Membership Retention Help Drive BJ's Strong Q4

BJ’s Wholesale Club closed out a strong 2022 with solid net sales growth in the fourth quarter as the company reported strong comparable store sales gains along with reaching a new high for membership renewals.

Net sales in the 13 week period ended Jan. 28 were $4.8 billion, an increase of 13.2% year-over-year. Total comparable club sales increased by 9.8% in the fourth quarter of fiscal 2022 compared to the fourth quarter of fiscal 2021. Excluding the impact of gasoline sales, comparable club sales increased by 8.7% in the fourth quarter of fiscal 2022 compared to the fourth quarter of fiscal 2021. 

Adjusted net income for the quarter was $136.7 million, a year-over-year increase of 24.4%, with earnings per share up 21.8% to $0.95.

“Our membership base is stronger than ever with our tenured renewal rate reaching an all-time high of 90%,” said Bob Eddy, president and CEO, BJ’s Wholesale Club. “Our continued focus on value has driven traffic and market share gains all year. Our digital business is growing and we’re successfully expanding our footprint. The investments we continue to make in our company position us well for long-term growth and sustainable value creation.”

For the full year, BJ’s reported net sales of $18.9 billion, an increase of 16% over the previous year. Net income was $535.2 million, up 19.2% over 2021. Earnings per share for the full year were $3.76, an increase of 21.7%.

When looking ahead at fiscal year 2023, Laura Felice, BJ’s executive vice president and chief financial officer, said the retailer remains confident that its advantaged business model, continued focus on executing its strategic priorities, and commitment to delivering value to its members will continue to drive strong results.

“We look ahead to fiscal 2023 with the understanding that there is still significant uncertainty in the macroeconomic backdrop as well as its influence on the U.S. consumer,” she added.

The company provided the following guidance for fiscal 2023:

• Comparable club sales, excluding the impact of gasoline sales, to increase 4% to 5% year-over-year
• Membership fee income to increase 5% to 6% year-over-year
• Merchandise gross margins to improve approximately 40 basis points year-over-year
• EPS to remain approximately flat year-over-year, including the 53rd week benefit of low-teens cents per share
• Capital expenditures of approximately $450 million.