BJ’s Wholesale Club beat Wall Street expectations in the fourth quarter with gains in earnings and revenue despite tariff pressure on home and seasonal merchandise, the company reported.
A MarketBeat analyst consensus estimate called for earnings per adjusted diluted share of 93 cents and revenue of $5.54 billion.
Comparable sales gained 2.6% year-over-year, excluding the effect of gasoline price volatility. Net sales were $5.45 billion while total revenue was $5.58 billion versus $5.16 billion and $5.28 billion, respectively, in the year-before quarter. Operating income was $178.1 million versus $178.4 million in the year-previous period.
For the full fiscal year, net income was $578.4 million, or $4.38 per diluted share, versus $534.4 million, or $4 per diluted share, in the prior year. Adjusted net income was $581.3 million, or $4.40 per diluted share, versus $541.1 million, or $4.05 per diluted share, in the year earlier, BJ’s reported.
Net sales were $20.96 billion while total revenue was $21.46 billion versus $20.05 billion and $20.5 billion, respectively, in the year before. Operating income was $816.6 million versus $772.2 million in the year previous.
In providing guidance for the current fiscal year, BJ’s stated that it expected comparable sales, sans fuel volatility, to increase 2% to 3% with adjusted earnings per diluted share coming in at $4.40 to $4.60.
Bob Eddy, BJ’s chairman and chief executive officer, said in a conference call, “In general merchandise and services, comps increased by 4.3%, which outperformed our expectations for the quarter, driven by changes in merchandise mix.”
He noted, however, that the home and seasonal businesses drew more impact from tariffs than other product categories and BJ’s cut its inventories in affected segments. As such, home and seasonal categories comped negatively in the fourth quarter.
In announcing the financial results, Eddy said, “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. 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.”
