BJ’s Wholesale Club posted higher net income and comparable sales in the second quarter, but general merchandise comps slipped on macroeconomic pressures and weather.
Net income was $150.7 million, or $1.14 per diluted share, versus $145 million, or $1.08 per diluted share, in the year-prior quarter. Adjusted for one-time events, net income was $151.5 million, or $1.14 per diluted share, versus $146.3 million, or $1.09 per diluted share, in the period a year earlier.
An analyst consensus estimate from Zacks Investment Research called for earnings of $1.10 per share and revenues of $5.46 billion.
Comparable sales, excluding gasoline revenue, increased by 2.3% year-over-year in the quarter, led by traffic growth, the company maintained. Net sales were $5.26 billion and total revenue was $5.38 billion versus $5.09 billion and $5.21 billion, respectively, in the year-before period. Operating income was $216.5 million versus $203.7 million in the year-previous quarter.
BJ’s noted that its fiscal 2025 outlook continues to anticipate a top-line range aligned with previous guidance. However, the company increased the bottom line. New guidance called for comparable sales, excluding the impact of gasoline revenues, to increase 2.0% to 3.5% year-over-year, and adjusted EPS to range from $4.20 to $4.35.
In a conference call, Bob Eddy, BJ’s chairman and CEO, said general merchandise and services sales declined 2.2% on a comparable basis in the quarter, with macroeconomic uncertainty and unseasonable weather hurting results. Sales in higher ticket GM discretionary merchandise, particularly lawn and garden, and recreational goods, were soft.
Eddy, in announcing the financial results, said, “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. We are on a powerful trajectory and our teams remain steadfast towards executing on our long-term objectives.”
