MARLBOROUGH, Mass. - BJ's Wholesale Club Holdings, Inc. (NYSE: NYSE:BJ) reported first-quarter adjusted earnings per share (EPS) of $0.85, slightly surpassing Wall Street's expectations of $0.83. The company's revenue for the quarter reached $4.92 billion, exceeding the consensus estimate of $4.85 billion and marking a 4.1% increase from the previous year's $4.72 billion.
The membership warehouse club's comparable club sales saw a 1.6% rise year-over-year (YoY), with digitally enabled sales soaring by 21.0% YoY. Membership fee income also showed robust growth, climbing 8.6% YoY to $111.4 million.
Despite these gains, the company's merchandise gross margin rate dipped by 50 basis points YoY.
BJ's Wholesale Club's net income for the quarter was $111.0 million, a slight decrease from the $116.1 million reported in the same period last year. Adjusted EBITDA also saw a decline, falling 6.0% to $236.4 million.
Laura Felice, Executive Vice President and Chief Financial Officer, expressed confidence in the company's ability to continue its momentum with traffic and unit volumes.
"Our outlook remains unchanged for fiscal 2024," Felice stated, signifying steady expectations for the company's performance.
Despite the positive earnings report, BJ's Wholesale Club's stock experienced a modest decline of 0.9% following the announcement. This slight market reaction suggests that investors may have already anticipated the strong results or are focused on other aspects of the company's performance and future prospects.
The company's commitment to growth was evident in its strategic openings of one new club and one new gas station during the quarter, with plans to open 12 new clubs throughout the year.
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