BJ’s Wholesale Club Holdings, Inc. reported that net sales for its fiscal fourth quarter rose 5.5 percent year-over-year (y/y) to $5.45 billion. Total revenue increased 5.6 percent y/y to $5.58 billion for the 13-week period ended January 31, helped by a 10.9 percent y/y increase in membership fee income.

The membership warehouse club, headquartered in Marlborough, MA, reported that total comparable club sales increased 1.6 percent y/y in the fourth quarter and grew 1.0 percent for the full-year fiscal 2025. Excluding the impact of gas sales, comparable club sales increased 2.6 percent y/y in each period.

“As we reflect on the year, our results demonstrate the strength of our transformation and disciplined execution of our long‑term priorities. Record membership, strong digital engagement, and our 16th consecutive quarter of traffic growth show how effectively our teams are delivering value and convenience to our members,” said Bob Eddy, chairman and CEO, BJ’s Wholesale Club. “Our focus on enhancing our assortment, investing in value, and expanding our footprint continues to resonate, and I’m proud of the progress we made this year.”

Fiscal 2025 and Fourth Quarter Results
(amounts in thousands, except per share amounts)

Membership fee income increased to $129.8 million in the fourth quarter from $117.0 million in the fourth quarter of fiscal 2024. The increase was said to be primarily driven by strength in membership acquisition, retention, and higher-tier membership penetration across both new and existing clubs, as well as the increase in annual membership fees, which became effective in January 2025.

Merchandise gross margin rate for the fourth quarter, which excludes gasoline sales and membership fee income, decreased by approximately 50 basis points y/y, driven by changes in merchandise mix. Merchandise gross margin rate remained flat for the fiscal 2025 full year compared to fiscal 2024.

Selling, general and administrative expenses (SG&A) increased to $818.2 million in the fourth quarter compared to $758.2 million in Q4 2024. SG&A increased to $3.15 billion in full-year 2025 compared to $2.96 billion in fiscal 2024. The increase in both comparative periods was said to be primarily driven by increased labor, occupancy and operational costs, mainly due to new club and gas station openings. Additionally, an increase in the number of owned clubs has led to higher depreciation expense year-over-year.

During fiscal 2024, the company said it benefited from the net impact of legal settlements, which reached approximately $20 million, contributing to the year-over-year increase in SG&A expenses.

Income tax expense decreased to $41.6 million in the fourth quarter compared to $43.7 million in Q4 2024, said to be primarily driven by a gain recognized on transferable tax credits, partially offset by lower tax benefits from stock-based compensation. Income tax expense increased to $195.8 million in fiscal 2025 compared to $186.4 million in fiscal 2024, primarily driven by an increase in income before income taxes and lower tax benefits from stock-based compensation, partially offset by gains recognized on transferable tax credits.

Net income increased to $125.9 million in the 2025 fourth quarter, compared to $122.7 million in the fourth quarter of fiscal 2024. Net income increased to $578.4 million in fiscal 2025 compared to $534.4 million in fiscal 2024.

Adjusted EBITDA increased by 0.7 percent to $266.5 million in the fourth quarter compared to $264.6 million in the 2024 fourth quarter. Adjusted EBITDA increased by 6.1 percent to $1.16 billion in fiscal 2025 compared to $1.09 billion in fiscal 2024.

Under its existing share repurchase program, the company said it repurchased 1,264,000 shares of common stock, totaling $117.7 million, inclusive of associated costs, in the fourth quarter of fiscal 2025. In fiscal 2025, the company repurchased 2,599,000 shares of common stock, totaling $252.4 million, inclusive of associated costs, under such program, and $749.7 million remained available to purchase.

Image courtesy BJ’s Wholesale Club Holdings, Inc.