- BJ's Wholesale Club Holdings Inc BJ reported fourth-quarter FY22 sales growth of 13.1% year-on-year to $4.93 billion, beating the consensus of $4.80 billion.
- Total comparable club sales increased by 9.8%. Comparable club sales, excluding gasoline sales, increased by 8.7%.
- Membership fee income increased by 8% to $101.8 million. Digitally enabled sales growth was 22% Y/Y.
- Gross profit rose 13.3% Y/Y to $903.2 million with a margin of 18.3%. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, increased by 30 basis points Y/Y.
- Operating margin was 3.9%, and operating income for the quarter rose 22.7% to $192.8 million. Adjusted EBITDA of $271.3 million increased 18.7% Y/Y.
- Adjusted EPS of $1.00 beat the analyst consensus of $0.87.
- BJ's Wholesale Club held $33.9 million in cash and equivalents as of Jan. 28, 2023. Cash provided by operating activities for the year totaled $788.2 million.
- Outlook: BJ's Wholesale expects FY23 EPS to remain approximately flat, including the 53rd-week benefit of low-teens cents per share.
- BJ expects FY23 comparable club sales growth, excluding the impact of gasoline sales, to be in the 4%-5% range.
- BJ sees membership fee income to increase 5% - 6% Y/Y. BJ expects merchandise margin to improve 40 basis points.
- For the long-term, BJ expects comparable club sales growth of low-to-mid single-digit percent, excluding the impact of gasoline sales. Total revenue growth of mid-single-digit percent and EPS growth of high-single to low-double-digit percent.
- Price Action: BJ shares traded higher by 2.56% at $76.21 in premarket on the last check Thursday.
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