BJ’s Wholesale Club Holdings, Inc. raised its outlook for the year as second-quarter profits rose 3.9 percent, driven by a 2.3 percent increase in comparable club sales, excluding sales of gasoline.

Earnings of $1.14 per share came ahead of the consensus estimates of $1.10 and increased from $1.09 reported in the year-ago period. Revenues of $5.38 billion were short of analysts’ consensus target of $5.46 billion.

“Our business model continues to perform and build upon momentum, as we grow membership and gain market share even in a dynamic environment. We enter the back half of the year on solid footing and confident in our ability to deliver strong results,” said Bob Eddy, chairman and chief executive officer, BJ’s Wholesale Club. “We are on a powerful trajectory, and our teams remain steadfast towards executing on our long-term objectives.”

Additional Highlights

  • Total comparable club sales decreased by 0.3 percent and increased by 0.6 percent in the second quarter and first six months of fiscal 2025, respectively, compared to the same periods in fiscal 2024. Excluding the impact of gasoline sales, comparable club sales increased by 2.3 percent and 3.1 percent in the second quarter and first six months of fiscal 2025, respectively, compared to the same periods in fiscal 2024.
  • Membership fee income increased to $123.3 million in the second quarter of fiscal 2025 compared to $113.1 million in the second quarter of fiscal 2024. Membership fee income increased to $243.7 million in the first six months of fiscal 2025 compared to $224.5 million in the first six months of fiscal 2024. The increase in both comparative periods was 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 took effect in January 2025.
  • Gross profit increased to $1.01 billion in the second quarter of fiscal 2025 compared to $956.6 million in the second quarter of fiscal 2024. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, increased by 10 basis points over the same quarter of fiscal 2024. Gross profit increased to $1.98 billion in the first six months of fiscal 2025 compared to $1.84 billion in the first six months of fiscal 2024. Merchandise gross margin rate increased by 20 basis points compared to the first six months of fiscal 2024. The company continues to manage the business to drive profitable growth across the broader merchandise assortment.
  • Selling, general and administrative expenses (SG&A) increased to $786.4 million in the second quarter of fiscal 2025 compared to $750.3 million in the second quarter of fiscal 2024. SG&A increased to $1.55 billion in the first six months of fiscal 2025 compared to $1.47 billion in the first six months of fiscal 2024. The increase in both comparative periods was primarily driven by rising labor and occupancy costs resulting from new club and gas station openings. Additionally, an increase in the number of owned clubs has resulted in increased depreciation expense year-over-year.
  • Income before income taxes increased to $206.1 million in the second quarter of fiscal 2025 compared to $190.9 million in the second quarter of fiscal 2024. Income before income taxes increased to $398.7 million in the first six months of fiscal 2025 compared to $337.7 million in the first six months of fiscal 2024.
  • Income tax expense increased to $55.4 million in the second quarter of fiscal 2025 compared to $45.9 million in the second quarter of fiscal 2024. Income tax expense increased to $98.2 million in the first six months of fiscal 2025 compared to $81.7 million in the first six months of fiscal 2024.
  • Net income increased to $150.7 million in the second quarter of fiscal 2025 compared to $145.0 million in the second quarter of fiscal 2024. Net income increased to $300.5 million in the first six months of fiscal 2025 compared to $256.0 million in the first six months of fiscal 2024.
  • Adjusted EBITDA increased by 8.0 percent to $303.9 million in the second quarter of fiscal 2025 compared to $281.3 million in the second quarter of fiscal 2024. Adjusted EBITDA increased by 13.9 percent to $589.7 million in the first six months of fiscal 2025 compared to $517.7 million in the first six months of fiscal 2024.
  • Under its existing share repurchase program, the company repurchased 375,000 shares of common stock, totaling $41.2 million, inclusive of associated costs, in the second quarter of fiscal 2025. In the first six months of fiscal 2025, the company repurchased 430,000 shares of common stock, totaling $47.4 million, inclusive of associated costs, under such program, and $952.6 million remained available to purchase.

 Fiscal 2025 Ending January 31, 2026 Outlook
“We are pleased with the performance of the business year to date and are confident in the outlook for the back half. We continue to see a top-line range aligned with our previous outlook, but we are narrowing and increasing our range on the bottom line,” said Laura Felice, executive vice president, chief financial officer, BJ’s Wholesale Club.

The company provided an updated outlook for fiscal 2025:

  • Comparable club sales, excluding the impact of gasoline sales, are expected to increase 2.0 percent to 3.5 percent year-over-year, unchanged from previous guidance.
  • Adjusted EPS to range from $4.20 to $4.35. Previous guidance called for earnings in the range of $4.10 to $4.30,
  • Capital expenditures of approximately $800 million, unchanged from previous guidance.

Image courtesy BJ’s Wholesale