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BJ's Wholesale dips after not raising profit outlook despite Q3 beat

Published 2023-11-17, 07:38 a/m
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BJ's Wholesale (BJ) reported third-quarter results today, with adjusted earnings per share (EPS) coming in at 98 cents, slightly below the previous year's 99 cents but surpassing the estimated 95 cents.

Revenue came in at $4.92 billion, up almost 3% YoY and matching the analyst consensus.

Still, the stock has experienced a 5% decline in pre-market trading.

Membership fees were $106.1 million, ahead of the Street at $104.8 million. Inventories were reported at $1.66 billion, up 10% YoY.

“Our advantaged model and strong value proposition continue to resonate with our members,” said Bob Eddy, Chairman and Chief Executive Officer, BJ’s Wholesale Club.

“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.”

BJ's also provided guidance as it expects comparable club sales, excluding the impact of gasoline sales, to range from a 2% decrease to a 1% increase YoY

For the full year fiscal 2023, BJ's Wholesale anticipates comparable club sales, again excluding gasoline sales impact, to rise from 1.0% to 1.8% annually.

“As we look ahead to the rest of the year, we remain confident in our ability to maintain the momentum in our traffic and market share gains due to our unrelenting focus on value. We also continue to navigate shifts in consumer behavior driven by the broader macroeconomic environment,” Eddy added.

Adjusted earnings per share (EPS) forecast – $3.80 to $3.92 – is maintained.

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