BJ's Wholesale Club Posts Q4 Earnings Above Street View Due To Strong Membership Fee

BJ’s Wholesale Club Holdings, Inc BJ shares are trading higher in premarket on Thursday after the fourth-quarter earnings.

The company reported a fourth-quarter revenue decline of 1.4% year-on-year to $5.28 billion, beating the analyst consensus estimate of $5.27 billion.

Total comparable club sales increased by 4%. Comparable club sales, excluding gasoline sales, increased by 4.6%.

Membership fee income increased by 7.9% to $117 million. Digitally enabled comparable sales climbed 26%.

Selling, general and administrative expenses increased 2.3% to $758.2 million. Operating income for the quarter dropped 16.6% to $178.4 million. Adjusted EBITDA of $264.6 million decreased 9% Y/Y.

Adjusted EPS of $0.93 beat the consensus estimate of $0.87.

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BJ’s Wholesale Club held $28.3 million in cash and equivalents as of February 1. Operating cash flow for twelve months totaled $900.8 million with an adjusted free cash flow of $312.8 million.

Under its existing share repurchase program, the company repurchased 645,294 shares of common stock, totaling $61.6 million in the fourth quarter.

“Our terrific fourth quarter performance contributed to a record year at BJ’s, powered by all-time high membership results. Our improved assortment, investments in value and significant growth in digital sales drove our 12th consecutive quarter of traffic growth. We are also growing our footprint at pace to serve even more members,” said Chairman and CEO Bob Eddy.

Outlook: BJ’s Wholesale sees FY25 adjusted EPS of $4.10 – $4.30 versus the estimate of $4.32.

BJ expects FY25 comparable club sales growth, excluding the impact of gasoline sales, to grow 2% – 3.5%.

The company expects capital expenditure is expected to be about $800 million.

Price Action: BJ shares are trading higher by 0.91% at $101.00 in premarket at last check Thursday.

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