Home BJ’s Spotlights Home Products for Q3 Revenue, Earnings Beat
November 17, 2023

BJ’s Spotlights Home Products for Q3 Revenue, Earnings Beat

By: Mike Duff

Contributing Editor

Although adjusted earnings slipped slightly year over year, BJ’s Wholesale Club beat Wall Street revenue and income estimates for the third quarter as it pushed to gain better traction in general merchandise, including home goods.

Net income was $130.5 million, or 97 cents per diluted share, versus $129.9 million, or 95 cents per diluted share, in the year-previous quarter, the company reported. Adjusted for one-time charges, net income was $131.8 million, or 98 cents per diluted share, versus $135.8 million, or 99 cents per diluted share, in the year-earlier period.

An analyst consensus estimate published by Yahoo Finance called for adjusted diluted earnings per share of 95 cents and sales of $4.9 billion.

Comparable store sales, excluding fuel price volatility, were flat year over year, according to BJ’s, which added digitally enabled comps gained 16% year-over-year

Net sales were $4.82 billion versus $4.69 billion in the year-before quarter while revenues, including membership fees, were $4.92 billion versus $4.79 billion. Operating income was $199.4 million versus $192 billion in the year-prior period..

In a conference call, Bob Eddy, BJ’s chairman and CEO. said general merchandise sales that had been squeezed by consumer concern about discretionary spending are looking better. In the third quarter, about 80% of the holiday home assortment was new, with BJ’s investing in quality and enhancing the value, Eddy said. The company also is strengthening its treasure hunt elements with curated trend-driven, giftable items, such as a retro video game station, Sur La Table kitchenware and a home movie theater pop-up kit, he said. In addition, BJ’s is enhancing general merchandise marketing and presentation in its clubs for a better member experience, Eddy added.

“Our advantaged model and strong value proposition continue to resonate with our members,” he said. “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.”

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