Why Are BJ's Wholesale Club Shares Trading Lower Today

BJ's Wholesale Club Holdings Inc BJ reported fourth-quarter FY21 sales growth of 10.4% year-on-year, to $4.36 billion, missing the consensus of $4.38 billion.
Comparable sales increased by 8.8%, reflecting two-year stacked comp of 21.8%.
Comparable club sales, excluding gasoline sales, increased by 0.9%, reflecting two-year stacked comp of 16.8%.
Digitally-enabled sales grew 19%, reflecting two-year stacked comp growth of 187%.
Gross profit rose 7.4% Y/Y to $797.2 million with a margin of 18.3%. The operating margin was 3.6%, and operating income for the quarter rose 8.6% to $157.1 million.
BJ's Wholesale Club held $45.4 million in cash and equivalents as of January 29, 2022. Cash provided by operating activities for the quarter totaled $98.5 million.
Adjusted EBITDA of $228.6 million increased 11.8% Y/Y.
Adjusted EPS of $0.80 beat the consensus of $0.74.
Outlook: BJ expects FY22 net sales to increase in the mid-single-digit range. It expects EPS to remain flat Y/Y after giving effect to the pending Burris acquisition of assets.
"As an offset on the top line, we're experiencing some of the highest levels of inflation that we've seen in several decades," said CFO Laura Felice.
Price Action: BJ shares are trading lower by 13.5% at $56.99 in premarket on the last check Thursday.

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