From Nasdaq: 2024-11-22 15:00:00

BJ’s Wholesale Club Holdings, Inc. reported mixed third-quarter fiscal 2024 results, with revenues below estimates but earnings surpassing expectations. The company grew its membership base to 7.5 million and announced its first membership fee hike in seven years. BJ’s also unveiled a $1 billion share repurchase program and raised its fiscal 2024 guidance.

The company’s adjusted earnings per share of $1.18 beat estimates and increased from the year-ago period. Total revenues grew to $5,099.4 million, with net sales up 3.4% and membership fee income rising 8.4%. Comparable club sales increased 1.5% year over year, with digitally enabled sales up 30%.

BJ’s Wholesale Club saw improvements in gross profit, operating income, and adjusted EBITDA margins during the quarter. The company ended the quarter with $33.9 million in cash and cash equivalents, $398.7 million in long-term debt, and $1,762.2 million in stockholders’ equity.

BJ’s announced its first membership fee increase in seven years, with rates set to go up on Jan. 1, 2025. The company also introduced a new perk for Club+ members, including free same-day deliveries on eligible orders. Management updated its fiscal 2024 guidance, expecting fourth-quarter comparable club sales to rise between 2.5% and 3%.

Investors saw BJ’s stock rise 8.3% following the earnings report. The company’s stock has seen a 11.5% increase in the past six months, outperforming the industry’s decline of 1%. Strong pricing strategies, merchandise initiatives, and digital advancements drove the positive performance, leading to the share price increase.



Read more at Nasdaq: BJ’s Wholesale Q3 Earnings Top, FY24 View Up, Membership Hike Ahead