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Investing.com -- BJ’s Wholesale Club Holdings, Inc. reported second-quarter earnings that exceeded analyst expectations, while revenue fell short of estimates. The wholesale club operator raised its full-year earnings guidance as it reached a milestone of 8 million members.
BJ’s reported adjusted earnings per share of $1.14 for the second quarter, beating the analyst consensus of $1.10. Revenue came in at $5.38 billion, below the analyst estimate of $5.49 billion. The company’s stock moved slightly lower by 0.2% following the earnings announcement.
Comparable club sales excluding gasoline increased by 2.3% YoY, driven by traffic growth. However, total comparable club sales decreased by 0.3% due to declining retail fuel prices. Membership fee income, a key metric for the warehouse club model, rose 9.0% YoY to $123.3 million.
"Our business model continues to perform and build upon momentum, as we grow membership and gain market share even in a dynamic environment," said Bob Eddy, Chairman and Chief Executive Officer of BJ’s Wholesale Club (NYSE:BJ). "We enter the back half of the year on solid footing and confident in our ability to deliver strong results."
The company updated its fiscal 2025 outlook, now expecting adjusted earnings per share between $4.20 and $4.35, compared to the analyst consensus of $4.31. BJ’s maintained its forecast for comparable club sales growth of 2.0% to 3.5% excluding gasoline.
Merchandise gross margin rate, which excludes gasoline sales and membership fee income, improved by 10 basis points compared to the same quarter last year. The company’s digitally enabled comparable sales grew an impressive 34%, reflecting a two-year stacked growth of 56%.