BJ's Wholesale Club Holdings, Inc. (BJ) came up with its second-quarter fiscal 2024 results, delivering strong performance as revenues and earnings surpassed the Zacks Consensus Estimate, with year-over-year improvements in both metrics. Additionally, the company's comparable club sales showed decent growth. Despite better-than-expected results, shares of the Marlborough, MA-based company dropped approximately 6.8% during the Aug 22 trading session. The company's cautious outlook primarily drove the market ...

Core Viewpoint - The company maintains a hold rating for BJ's Wholesale Club Holdings due to its high valuation despite strong fundamentals and positive demand outlook [2][8]. Financial Performance - In 2Q24, BJ reported total revenue of $5.2 billion, reflecting approximately 5% year-over-year growth, driven by same-store sales (SSS) growth of 2.4% primarily from increased traffic [3]. - The total gross margin improved to 18.4%, resulting in a gross profit of approximately $960 million, while operating costs increased by 7.7% year-over-year, leading to SG&A expenses of $748 million [3]. - BJ achieved an EBIT margin of 3.9%, equating to around $203 million, which exceeded consensus estimates by approximately $3 million [3]. Demand and Market Position - BJ is well-positioned to benefit from the current consumer spending environment, evidenced by strong SSS growth for three consecutive quarters, with traffic contributing 400 basis points to the growth [4]. - All product segments showed improvements, with perishables, groceries, and sundries experiencing around 3% SSS growth, while apparel saw high-single-digit revenue growth [4]. - The company added the highest number of members since COVID, reaching approximately 7.5 million members, indicating strong demand and consumer engagement [5]. Membership Fee Potential - There is potential for BJ to increase membership fees, as the company has not raised prices in the past five years, and a fee increase could significantly impact year-over-year growth [6]. - A precedent set by Costco's recent fee increase suggests that BJ may follow suit, which could generate over $30 million in additional membership fee income [6]. Valuation Concerns - Despite a robust fundamental outlook, BJ's valuation has risen to approximately 20x, which is considered too high relative to expected earnings growth and peer valuations [7]. - Similar peers in the industry trade at an average multiple of around 16x, indicating that BJ's current valuation is not attractive enough to warrant an upgrade to a buy rating [7]. Conclusion - The overall assessment for BJ remains a hold rating due to its relatively high valuation, despite strong 2Q24 results and a positive demand outlook [8].

BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) Q2 2024 Earnings Conference Call August 22, 2024 8:30 AM ET Company Participants Cathy Park - IR Bob Eddy - Chairman & CEO Laura Felice - CFO Bill Werner - EVP, Strategy & Development Conference Call Participants Maddie Barnes - Bank of America Peter Benedict - Baird Michael Baker - D.A. Davidson Ryan Bulger - Gordon Haskett Simeon Gutman - Morgan Stanley Mark Carden - UBS Operator Hello everyone, and welcome to BJ's Wholesale Club Holdings Inc Second Quarter Fis ...

Shares of the warehouse retailer dipped on weak guidance. Shares of BJ's Wholesale Club (BJ -5.77%) were sliding today in response to news of an underwhelming second-quarter earnings report from the warehouse club chain. While the company topped estimates for the quarter past, guidance called for full-year earnings per share (EPS) to come at the lower end of this guidance. As a result, the stock was down 6.5% as of 12:46 p.m. ET. BJ's edges out expectations The warehouse club chain, which competes with Sam' ...

Mina De La O BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) in our view is taking a breather. Some healthy consolidation, really. We think the long-term story remains intact, and future weakness is worth considering. For now, we remain at "hold," but if the price dips into the $70s, it is worth considering. As a reminder, if you do not have a BJ's club in your area, this is like a warehouse type store chain. The company operates hundreds of membership-only clubs in well over a dozen states. You may be familia ...

Key Takeaways BJ's Wholesale Holdings said full-year adjusted earnings per share could be at the low end of its forecast because of long-term investments. The retailer's selling, general, and administrative expenses increased 8% from a year ago. Adjusted earnings per share, revenue, net sales, and membership fees all exceeded analysts' estimates. BJ's Wholesale Club (BJ) shares sank after the retailer gave soft guidance as it looks to invest more money into the business. BJ's CFO Laura Felice said full-year ...

Pre-market futures are keeping mildly positive this morning, as they were yesterday at the closing bell. We do have seasonal lower volume overall, so it's nice to see the moves at these levels remain in the green. The Dow is up another +45 points, the S&P 500 +11 and the Nasdaq +63 points at this hour. Bond yields are also cooling slightly: 3.83% on the 10-year, 3.97% on the 2-year. Jobless Claims Stay Well-Behaved This being Thursday morning, we see new Weekly Jobless Claims flattish with last week's talli ...

BJ's Wholesale Club (BJ) reported $5.21 billion in revenue for the quarter ended July 2024, representing a yearover-year increase of 4.9%. EPS of $1.09 for the same period compares to $0.97 a year ago. The reported revenue represents a surprise of +0.95% over the Zacks Consensus Estimate of $5.16 billion. With the consensus EPS estimate being $1.00, the EPS surprise was +9.00%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall St ...

BJ's Wholesale Club (BJ) came out with quarterly earnings of $1.09 per share, beating the Zacks Consensus Estimate of $1 per share. This compares to earnings of $0.97 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 9%. A quarter ago, it was expected that this wholesale membership warehouse operator would post earnings of $0.83 per share when it actually produced earnings of $0.85, delivering a surprise of 2.41%. Over the last ...

Exhibit 99.1 BJ's Wholesale Club Holdings, Inc. Announces Second Quarter Fiscal 2024 Results Second quarter demonstrates strong momentum in membership, traffic, and unit volumes Second Quarter Fiscal 2024 Highlights • Comparable club sales increased by 3.1% year-over-year • Comparable club sales, excluding gasoline sales, increased by 2.4% year-over-year • Digitally enabled comparable sales growth was 22.0% year-over-year • Membership fee income increased by 9.1% year-over-year to $113.1 million • Earnings ...