Growth In Store Traffic Boosts Q1 Revenue At BJ's Wholesale Club
BJ’s Wholesale Club reported a gain in second quarter net sales as accelerating traffic and unit growth were cited as key revenue drivers.
For the quarter ended August 3, net sales increased 4.8% to $5.1 billion. Net income increased to $145 million in the second quarter of fiscal 2024 compared to $131.3 million in the second quarter of fiscal 2023. Comparable club sales were up 3.1% and membership revenue grew 9.1% to $113.1 million.
“Our second quarter was marked by robust membership, accelerating traffic and unit growth, and a fast-tracking digital business, which led to strong performance in the quarter,” said Bob Eddy, chairman and chief executive officer of BJ’s Wholesale Club. “This was our 10th consecutive quarter of traffic growth. We are driving healthy membership expansion across both existing and new clubs. Our compelling value proposition is resonating with our members and we believe our results demonstrate the meaningful progress we are making on our long-term strategic initiatives.”
Figures from Placer.ai show foot traffic at BJ’s Wholesale in the second quarter was up 7.5% as the retailer and its warehouse club brethren continue to see more shoppers coming through their doors.
For the first half of the current fiscal year, sales at the wholesale club increased 4.4% to $9.9 billion. Net income for the first half increased 3.5% to $256 million with comparable club sales up 2.6% for the year’s first half.
Looking ahead, BJ’s Wholesale expects fiscal 2024 comparable club sales, excluding the impact of gasoline sales, to increase 1% to 2% year-over-year, with traffic and unit growth as well as a strong perishables business likely driving the retailer to the higher end of the range.
“As we look ahead, we remain confident in our ability to drive long-term growth and shareholder value led by our continued focus on executing our strategic priorities and delivering significant value to our members,” said Laura Felice, executive vice president, chief financial officer, BJ's Wholesale Club. “With respect to our outlook, we continue to our business model and long-term strategies have allowed us to invest in our value proposition to help our members stretch their dollar.”
