August 22nd ended up being a rather painful day for club warehouse enterprise BJ's Wholesale Club Holdings, Inc. (NYSE: BJ ). After management reported revenue, earnings per share, and adjusted earnings per share that all fellCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow an ...

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Shares of BJ's Wholesale Club Holdings sank 8% Friday after the member-only warehouse retailer's second-quarter comparable club sales unexpectedly slipped. https://t.co/XFyR3G3U2D ...

Key Takeaways BJ's Wholesale posted Q2 EPS of $1.14, beating estimates and rising from $1.09 last year.Membership reached 8M with a 90% renewal rate, driving a 9% jump in fee income.Management lifted FY25 EPS guidance to $4.20-$4.35, up from $4.10-$4.30.BJ’s Wholesale Club Holdings, Inc. (BJ) reported mixed results for the second quarter of fiscal 2025. While revenues came in below the Zacks Consensus Estimate, earnings exceeded expectations. Both figures improved year over year, supported by robust members ...

BJ's Wholesale Club (BJ) reported $5.38 billion in revenue for the quarter ended July 2025, representing a year-over-year increase of 3.4%. EPS of $1.14 for the same period compares to $1.09 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $5.46 billion, representing a surprise of -1.51%. The company delivered an EPS surprise of +3.64%, with the consensus EPS estimate being $1.10.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- an ...

Financial Data and Key Metrics Changes - Net sales for Q2 were approximately $5.3 billion, growing 3.2% year over year [21] - Comparable club sales, including gas, decreased 0.3% year over year, while merchandise comp sales, excluding gas, increased by 2.3% year over year [22] - Adjusted EBITDA grew approximately 8% year over year to $303.9 million, reflecting strong top-line growth and increased merchandise margins [27] - Adjusted earnings per share for Q2 were $1.14, an increase of 4.6% year over year [28] Business Line Data and Key Metrics Changes - The perishables grocery and sundries division saw a comp growth of 3%, driven by strong performance in dairy, meat, and fresh produce [6][8] - The general merchandise and services division experienced a decline of 2.2% in comp sales, impacted by weather and macroeconomic factors [9][22] - Digital sales grew 34% year over year, with over 90% of digital sales fulfilled by clubs [23] Market Data and Key Metrics Changes - The membership base reached 8 million, representing a 55% growth since the IPO seven years ago [6][12] - Higher tier membership penetration improved by 50 basis points to an all-time high of 41% [12][49] - Comp gallons in the gas business were flat year over year, significantly outperforming the industry [26] Company Strategy and Development Direction - The company is focused on enhancing member loyalty, improving the shopping experience, and expanding its footprint [11][34] - Investments in the Fresh 2.0 initiative are driving significant improvements in perishables and are being applied to meat and seafood categories [13][90] - The company plans to open 25 to 30 new clubs over the next two years, with a strong pipeline for future openings [17][31] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment remains uncertain, but the company is well-positioned to navigate challenges [19][31] - Consumer behavior has shifted, with increased caution among members across all income levels, but total spending has increased [10][60] - The company remains confident in its ability to deliver sustained growth despite external pressures [31][32] Other Important Information - Membership fee income grew 9% to approximately $123.3 million, benefiting from strong acquisition and retention [24] - Inventory levels decreased by about 2% year over year, with improved in-stock levels [28][29] - The company is maintaining a disciplined approach to capital allocation, focusing on investments that drive long-term value [30] Q&A Session Summary Question: How did the second quarter play out, and what are the expectations for the back half? - Management noted that the quarter strengthened as weather improved, with May being weak but June and July showing better performance [39][40] Question: What is the profile of new members and expectations for membership fee income? - The company is pleased with membership growth, reaching 8 million members, and high renewal rates contribute to membership fee income growth [48][49] Question: What insights can be shared about changes in consumer behavior? - Management observed a resilient consumer but noted increased caution and a focus on value across all income cohorts [58][60] Question: How is the general merchandise outlook for the back half of the year? - The general merchandise team is preparing for the back half, managing inventory cautiously while remaining aggressive in pricing [94][96] Question: Is the company being more cautious in inventory ordering for the back half? - Management confirmed a cautious approach in discretionary categories due to potential inflation impacts, while still aiming to provide value [100][104]

Financial Data and Key Metrics Changes - Net sales for Q2 were approximately $5.3 billion, growing 3.2% year over year [20] - Total comparable club sales, including gas, decreased 0.3% year over year, while merchandise comp sales, excluding gas, increased by 2.3% year over year [21] - Adjusted EBITDA grew approximately 8% year over year to $303.9 million, reflecting strong top-line growth and increased merchandise margins [25] - Adjusted earnings per share for Q2 were $1.14, an increase of 4.6% year over year [26] Business Line Data and Key Metrics Changes - The perishables grocery and sundries division saw a comp growth of 3% year over year, driven by strength in comp units [21] - The general merchandise and services division experienced a comp decrease of 2.2%, with discretionary categories like recreation and lawn and garden facing double-digit declines [7][21] - Digital sales grew 34% year over year and 56% on a two-year stack, with over 90% of digital sales fulfilled by clubs [22] Market Data and Key Metrics Changes - The membership base reached 8 million, representing a 55% growth since the IPO seven years ago [5][10] - Higher tier membership penetration improved by 50 basis points to an all-time high of 41% [11][49] - Comp gallons in the gas business were flat year over year, significantly outperforming the industry, which declined low single digits [24] Company Strategy and Development Direction - The company is focused on enhancing member loyalty, improving the shopping experience, and expanding its footprint [10][15] - Investments in the Fresh 2.0 initiative are driving share gains across consumables, particularly in perishables [12][85] - The company plans to open eight more clubs in the second half of the fiscal year, with a pipeline of 25 to 30 new clubs over the next two years [15][28] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer sentiment has turned cautious due to macroeconomic uncertainties, but total spending increased on a per member basis [8][56] - The company remains confident in its ability to navigate the current environment, citing record high membership metrics and ongoing share gains [18][29] - Management acknowledged the potential impact of tariffs and inflation on consumer spending patterns but believes the business model remains relevant [15][68] Other Important Information - Membership fee income grew 9% to approximately $123.3 million, benefiting from strong acquisition and retention [23] - Inventory levels decreased by about 2% year over year, with in-stock levels improving by approximately 50 basis points [26][27] - The company is maintaining a disciplined capital allocation strategy, focusing on investments that support long-term growth [28][29] Q&A Session Summary Question: How did the second quarter play out, and what are the expectations for the back half? - Management noted that the quarter strengthened as weather improved, with May being weak but June and July showing better performance [37][40] Question: What is the profile of new members and expectations for membership fee income? - The company is pleased with membership growth, reaching 8 million members, and high renewal rates contribute to membership fee income growth [46][49] Question: What insights can be shared about changes in consumer behavior during the quarter? - Management observed a resilient consumer but noted increased caution across all income levels, with a higher propensity to seek value [56][58] Question: How is the general merchandise outlook for the back half of the year? - The general merchandise team is managing through headwinds and preparing for the back half, with a focus on maintaining inventory prudence [90][91] Question: Is the company taking a more cautious approach to inventory ordering in the back half? - Management confirmed a cautious approach to discretionary categories due to potential price increases from tariffs, while still being aggressive in gaining market share [96][100]

Company Performance - BJ's Wholesale Club reported quarterly earnings of $1.14 per share, exceeding the Zacks Consensus Estimate of $1.1 per share, and showing an increase from $1.09 per share a year ago, resulting in an earnings surprise of +3.64% [1] - The company posted revenues of $5.38 billion for the quarter ended July 2025, which was 1.51% below the Zacks Consensus Estimate, but an increase from $5.21 billion year-over-year [2] - Over the last four quarters, BJ's has surpassed consensus EPS estimates four times, but has not beaten consensus revenue estimates during the same period [2] Stock Performance - BJ's shares have increased approximately 18.8% since the beginning of the year, outperforming the S&P 500's gain of 8.3% [3] - The current consensus EPS estimate for the upcoming quarter is $1.11 on revenues of $5.4 billion, and for the current fiscal year, it is $4.29 on revenues of $21.61 billion [7] Industry Outlook - The Consumer Products - Staples industry, to which BJ's belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of BJ's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Forward-Looking Statements: BJ's Wholesale Club Investor Presentation August 2025 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward- looking statements, including, without limitation, statements regarding our future results of operations and financial position; our anticipated fiscal 2025 outlook; our membe ...

[Q2 2025 Financial Performance Overview](index=1&type=section&id=Q2%202025%20Financial%20Performance%20Overview) BJ's Wholesale Club delivered strong Q2 FY2025 financial performance, marked by revenue and profit growth, a record 8 million members, and robust digital sales [Key Financial Results](index=1&type=section&id=Key%20Financial%20Results) BJ's Wholesale Club reported strong Q2 FY2025 financial results, achieving growth in revenues, operating income, and EPS, with a record 8 million members and robust digitally enabled sales Q2 & YTD Fiscal 2025 Key Financial Metrics (vs. Prior Year, in millions) | Metric | Q2 2025 | Q2 2024 | % Growth | YTD 2025 | YTD 2024 | % Growth | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $5,380.2 million | $5,205.4 million | 3.4% | $10,533.7 million | $10,123.9 million | 4.0% | | **Operating Income** | $216.5 million | $203.7 million | 6.3% | $420.2 million | $364.4 million | 15.3% | | **Net Income** | $150.7 million | $145.0 million | 3.9% | $300.5 million | $256.0 million | 17.4% | | **Diluted EPS** | $1.14 | $1.08 | 5.6% | $2.27 | $1.91 | 18.8% | | **Adjusted EPS** | $1.14 | $1.09 | 4.6% | $2.28 | $1.94 | 17.5% | | **Adjusted EBITDA** | $303.9 million | $281.3 million | 8.0% | $589.7 million | $517.7 million | 13.9% | - The company reached a significant milestone, growing its member count to a record **8 million members**[1](index=1&type=chunk)[6](index=6&type=chunk) - Comparable club sales decreased by **0.3%** year-over-year, primarily due to declining retail fuel prices[6](index=6&type=chunk)[7](index=7&type=chunk) - Excluding gasoline sales, comparable club sales increased by **2.3%** year-over-year, led by traffic growth[6](index=6&type=chunk)[7](index=7&type=chunk) - Digitally enabled comparable sales demonstrated strong performance with **34% growth**, contributing to a two-year stacked comparable growth of **56%**[6](index=6&type=chunk) [Detailed Financial Analysis](index=2&type=section&id=Detailed%20Financial%20Analysis) A detailed analysis reveals Q2 comparable sales growth excluding gasoline, strong membership fee income, improved profitability despite higher SG&A, and continued capital returns through share repurchases [Revenue and Membership Analysis](index=2&type=section&id=Revenue%20and%20Membership%20Analysis) Q2 saw a 2.3% comparable club sales growth excluding gasoline, with membership fee income rising 9.0% due to strong acquisition and retention Comparable Club Sales Growth (YoY) | Period | Total Comp Sales | Comp Sales (Ex-Gasoline) | | :--- | :--- | :--- | | **Q2 Fiscal 2025** | -0.3% | +2.3% | | **YTD Fiscal 2025** | +0.6% | +3.1% | Membership Fee Income (MFI, in millions) | Period | MFI | % Growth (YoY) | | :--- | :--- | :--- | | **Q2 Fiscal 2025** | $123.3 million | 9.0% | | **YTD Fiscal 2025** | $243.7 million | 8.6% | - The increase in membership fee income was primarily driven by strength in membership acquisition, retention, higher tier membership penetration, and the annual membership fee increase effective January 2025[7](index=7&type=chunk) [Profitability and Expense Analysis](index=2&type=section&id=Profitability%20and%20Expense%20Analysis) Q2 profitability improved with gross margin expansion, despite higher SG&A from new club openings, leading to increased operating and net income - Gross profit increased to **$1.01 billion** in Q2 2025 from $956.6 million in Q2 2024[7](index=7&type=chunk) - Merchandise gross margin rate (excluding gasoline and MFI) increased by **10 basis points** year-over-year[7](index=7&type=chunk) - SG&A expenses increased primarily due to higher labor and occupancy costs resulting from new club and gas station openings, as well as increased depreciation from a larger number of owned clubs[7](index=7&type=chunk) Q2 2025 Profitability Growth (YoY, in millions) | Metric | Q2 2025 | % Growth | | :--- | :--- | :--- | | **Operating Income** | $216.5 million | 6.3% | | **Net Income** | $150.7 million | 3.9% | | **Adjusted EBITDA** | $303.9 million | 8.0% | [Capital Management](index=2&type=section&id=Capital%20Management) The company repurchased 375,000 shares for $41.2 million in Q2, with $952.6 million remaining under its share repurchase authorization - **Q2 2025:** Repurchased **375,000 shares** for **$41.2 million**[7](index=7&type=chunk) - **YTD 2025:** Repurchased **430,000 shares** for **$47.4 million**[7](index=7&type=chunk) - **Remaining Authorization:** **$952.6 million** available for future repurchases[7](index=7&type=chunk) [Fiscal 2025 Outlook](index=3&type=section&id=Fiscal%202025%20Outlook) BJ's Wholesale Club updated its FY2025 guidance, raising adjusted EPS expectations while maintaining its comparable club sales and capital expenditure outlook [Updated Full-Year Guidance](index=3&type=section&id=Updated%20Full-Year%20Guidance) BJ's Wholesale Club narrowed and raised its FY2025 adjusted EPS guidance to $4.20-$4.35, maintaining comparable club sales outlook and capital expenditure plans Updated Fiscal 2025 Outlook (Ending Jan 31, 2026) | Metric | Guidance | | :--- | :--- | | **Comparable Club Sales (ex-gasoline)** | 2.0% to 3.5% increase YoY | | **Adjusted EPS** | $4.20 to $4.35 | | **Capital Expenditures** | Approx. $800 million | - CFO Laura Felice stated, "We are pleased with the performance of business year to date and are confident in the outlook for the back half. We continue to see a top line range aligned with our previous outlook, but we are narrowing and increasing our range on the bottom line"[8](index=8&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements present Q2 2025 operational results, balance sheet position, and cash flow activities, highlighting revenue growth, asset expansion, and increased operating cash [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 operations show total revenues of $5.38 billion, operating income of $216.5 million, and net income of $150.7 million, or $1.14 diluted EPS Condensed Consolidated Statements of Operations (Unaudited, in thousands) | | Thirteen Weeks Ended Aug 2, 2025 | Thirteen Weeks Ended Aug 3, 2024 | | :--- | :--- | :--- | | **Total revenues** | **$5,380,240** | **$5,205,395** | | Cost of sales | $4,374,065 | $4,248,819 | | SG&A | $786,358 | $750,323 | | **Operating income** | **$216,530** | **$203,675** | | Interest expense, net | $10,393 | $12,755 | | Income before income taxes | $206,137 | $190,920 | | **Net income** | **$150,705** | **$144,988** | | **Diluted EPS** | **$1.14** | **$1.08** | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of August 2, 2025, total assets reached $7.23 billion, with stockholders' equity increasing to $2.10 billion and total liabilities slightly decreasing Condensed Consolidated Balance Sheet Highlights (Unaudited, in thousands) | | August 2, 2025 | August 3, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,928,958 | $1,915,093 | | Property and equipment, net | $2,068,193 | $1,697,139 | | **Total assets** | **$7,231,772** | **$6,929,902** | | **Total current liabilities** | $2,434,236 | $2,523,750 | | Long-term debt | $398,953 | $398,586 | | **Total liabilities** | $5,132,678 | $5,274,995 | | **Stockholders' equity** | **$2,099,094** | **$1,654,907** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) YTD FY2025 cash flows show increased operating cash to $458.0 million, higher investing outflows, and $47.3 million in cash and cash equivalents Condensed Consolidated Statements of Cash Flows Highlights (Unaudited, in thousands) | | Twenty-six Weeks Ended Aug 2, 2025 | Twenty-six Weeks Ended Aug 3, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$457,957** | **$422,198** | | Net cash used in investing activities | ($306,156) | ($239,620) | | Net cash used in financing activities | ($132,800) | ($180,569) | | **Net increase in cash** | $19,001 | $2,009 | | **Cash and cash equivalents at end of period** | **$47,273** | **$38,058** | [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section explains the company's non-GAAP financial measures and provides detailed reconciliations from GAAP figures, including adjusted net income, EBITDA, and net debt metrics [Explanation of Non-GAAP Measures](index=8&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Non-GAAP measures like adjusted net income and EBITDA are used to provide consistent operating performance comparisons and aid management decisions - The company presents non-GAAP measures like adjusted net income, adjusted EPS, and adjusted EBITDA to assist investors in comparing core operating performance across reporting periods by excluding non-recurring or unusual items[24](index=24&type=chunk)[29](index=29&type=chunk) - Management uses these non-GAAP measures to supplement GAAP performance in evaluating business strategies, making budget decisions, and establishing incentive compensation[30](index=30&type=chunk) [GAAP to Non-GAAP Reconciliations](index=10&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) Detailed reconciliations show Q2 2025 adjusted net income of $151.5 million and adjusted EBITDA of $303.9 million, with a net debt to LTM adjusted EBITDA ratio of 0.4x Q2 2025 Reconciliation of Net Income to Adjusted Net Income (in thousands) | | Amount | | :--- | :--- | | **Net income as reported** | **$150,705** | | Restructuring | $1,043 | | Tax impact of adjustments | ($292) | | **Adjusted net income** | **$151,456** | Q2 2025 Reconciliation to Adjusted EBITDA (in thousands) | | Amount | | :--- | :--- | | **Net income** | **$150,705** | | Interest expense, net | $10,393 | | Provision for income taxes | $55,432 | | Depreciation and amortization | $71,933 | | Stock-based compensation expense | $13,945 | | Restructuring & Other adjustments | $1,453 | | **Adjusted EBITDA** | **$303,861** | Net Debt to LTM Adjusted EBITDA (as of Aug 2, 2025) | Metric | Amount (in thousands) | | :--- | :--- | | Total debt | $503,953 | | Less: Cash and cash equivalents | ($47,273) | | **Net debt** | **$456,680** | | LTM Adjusted EBITDA | $1,162,557 | | **Net debt to LTM adjusted EBITDA** | **0.4x** |