Revenue up, profit lower at BJ's Wholesale Club

21st Nov 2025 11:57

(Sharecast News) - BJ's Wholesale Club reported higher revenue and stronger membership income in its third quarter on Friday, but profit edged lower as operating costs rose, even as the retailer lifted its full-year earnings guidance.

Total revenue for the 13 weeks ended 1 November increased 4.9% year on year to $5.35bn, in line with Wall Street forecasts, while net sales rose 4.8% to $5.22bn.

Comparable-club sales grew 1.1%, or 1.8% excluding gasoline, short of analyst expectations of about 2.4%, but still representing a two-year stacked gain of 5.5%.

The membership-warehouse operator continued to lean on its fee-based model and digital growth to drive profitability.

Membership fee income climbed 9.8% to $126.3m, supported by strong acquisition and retention, higher penetration of premium tiers and the membership fee hikes that took effect in January 2025.

Digitally enabled comparable sales jumped 30% in the quarter, taking two-year stacked growth to 61%.

Merchandise gross margin, excluding gasoline and membership fees, was flat versus a year earlier, while gross profit increased to $1.01bn from $975.5m.

Higher operating costs weighed on the bottom line.

Selling, general and administrative expenses rose to $788.2m from $733.6m, driven by increased labour and occupancy costs from new club and gas station openings, higher advertising and greater depreciation on owned clubs.

Operating income fell 4.8% to about $218m, and net income slipped 2.4% to $152.1m, or $1.15 per diluted share, from $155.7m, or $1.17, a year earlier.

Adjusted earnings per share declined slightly to $1.16 but still beat consensus estimates of about $1.09 to $1.10, and adjusted EBITDA fell 2.2% to $301.4m.

Management said the results underlined the resilience of the business model in a challenging backdrop.

"Our business continues to perform well in a volatile environment and we are maintaining an unwavering focus on what matters most: taking care of families who depend on us," said chairman and chief executive Bob Eddy.

"We are confident that we can be the destination for value and convenience, and we are entering the holiday season with momentum."

Chief financial officer Laura Felice added: "Our business has delivered solid results year to date in a volatile backdrop, which speaks to the power and relevance of our business model.

"We are narrowing our outlook for full year merchandise comparable club sales while increasing our outlook for adjusted earnings per share."

BJ's narrowed its guidance for full-year comparable-club sales excluding gasoline to growth of 2.0% to 3.0%, trimming the top end from 3.5%, but raised its adjusted EPS forecast to a range of $4.30 to $4.40 from $4.20 to $4.35.

It marked the second consecutive quarter the company has upgraded its profit outlook and sits broadly in line with analyst expectations around the mid-$4.30s.

Capital expenditure for 2025 was projected at about $800m, and the company said it remained on track to open seven new clubs in the fourth quarter.

The retailer continued to return cash to shareholders, repurchasing 905,000 shares for $87.3m in the quarter, bringing buybacks for the first nine months to 1.34m shares, or $134.7m, with roughly $866m still available under its existing authorisation.

At 1005 ET (1505 GMT), shares in BJ's Wholesale Club Holdings were down 1.07% in New York at $89.63.

Reporting by Josh White for Sharecast.com.