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** |

Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period. Considering buying BJ stock? Here's what analysts think: BJ's Wholesale Club Holdings, Inc. BJ will release earnings results for the second quarter, before the opening bell on Friday, Aug. 22. Analysts expect the Marlborough, Massachusetts-based company to report quarterly earnings at $1.09 per share, versus $1.09 per share in the year-ago period. BJ's Wholesale projects to report quarterly revenue of $5. ...

Group 1 - BJ's Wholesale Club Holdings is set to announce its fiscal second-quarter results on August 22, 2025, with analysts projecting earnings of $1.09 per share and revenue of $5.48 billion, indicating no change in earnings year-over-year and a 5% increase in sales compared to the previous year [1][2] - The company has reiterated its fiscal 2025 guidance, emphasizing membership, traffic, and digital momentum as key growth drivers, alongside a 25% price advantage over supermarkets and plans to open 25-30 new clubs in the next two years [2] - BJ's has reported a market capitalization of $14 billion, with revenue for the last twelve months at $21 billion, operating profits of $848 million, and net income of $573 million [2] Group 2 - Historical data shows that BJ's stock has increased after earnings announcements 55% of the time, with a median one-day gain of 7.2% and a maximum increase of 20% [1][5] - Over the last five years, there have been 20 recorded earnings data points, with 11 positive and 9 negative one-day returns, while the percentage of positive returns drops to 45% when considering the last three years [5] - The correlation between short-term and medium-term returns after earnings can provide a lower-risk trading strategy, particularly if the 1D post-earnings return is positive [6]

Core Viewpoint - BJ's Wholesale Club is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The earnings report is expected on August 22, with a consensus EPS estimate of $1.10, reflecting a +0.9% change year-over-year. Revenues are projected to be $5.46 billion, up 4.9% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial projections during this period [4]. Earnings Surprise Prediction - The Most Accurate Estimate for BJ's is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +3.45%, suggesting a bullish outlook from analysts [12]. Historical Performance - In the last reported quarter, BJ's exceeded the expected earnings of $0.91 per share by delivering $1.14, achieving a surprise of +25.27%. The company has beaten consensus EPS estimates in all of the last four quarters [13][14]. Investment Considerations - While BJ's is seen as a strong candidate for an earnings beat, investors are advised to consider other factors that may influence stock performance beyond just earnings results [15][17].

Market Overview - Recent market pullback due to new tariffs and a slowdown in job growth has shaken investor confidence, with July nonfarm payrolls rising by only 73,000, significantly below expectations [1] - June's job numbers were revised downward, indicating a weaker labor market than previously thought [1] - Renewed trade tensions have fueled expectations of a Federal Reserve rate cut and increased risk aversion, leading to sharp declines in major indices [1] Importance of Financial Health - Investors should not rely solely on stock price movements; understanding a company's fundamentals is crucial for informed decision-making in an unpredictable market [2] - Sales and earnings metrics can be misleading; the interest coverage ratio is a key indicator of a company's ability to meet financial obligations [3][4] Interest Coverage Ratio - The interest coverage ratio measures how effectively a company can pay interest on its debt, calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense [5] - A higher interest coverage ratio indicates a greater ability to meet financial commitments, while a ratio below 1 suggests potential default risks [6][7] - Companies with strong interest coverage ratios include The Walt Disney Company, BJ's Wholesale Club, Ralph Lauren, and McKesson Corporation, all of which demonstrate solid debt-servicing capabilities [9][11] Investment Strategy - A favorable investment strategy includes selecting stocks with an interest coverage ratio above the industry average, a Zacks Rank of 1 or 2, and a VGM Score of A or B [8][10] - The selected companies have shown strong earnings surprises and are projected to grow sales and earnings in the coming year [9][11] Company Performance Highlights - **Walt Disney Company**: Zacks Rank 2, VGM Score B, with a trailing four-quarter earnings surprise of 16.4% and projected sales and EPS growth of 4% and 16.3% respectively [12] - **BJ's Wholesale Club**: Zacks Rank 2, VGM Score B, trailing four-quarter earnings surprise of 17.7%, with projected sales and EPS growth of 5.5% and 6.2% respectively [13] - **Ralph Lauren**: Zacks Rank 2, VGM Score B, trailing four-quarter earnings surprise of 9%, with projected sales and EPS growth of 3.8% and 11.8% respectively [14] - **McKesson Corporation**: Zacks Rank 2, VGM Score A, trailing four-quarter earnings surprise of 3.9%, with projected sales and EPS growth of 13.1% and 12.7% respectively [15]

Group 1 - BJ's Wholesale Club is one of 178 companies in the Consumer Staples group, which is currently ranked 12 within the Zacks Sector Rank [2] - BJ's Wholesale Club has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook as the consensus estimate for its full-year earnings has increased by 1.6% over the past 90 days [3] - BJ's Wholesale Club has returned approximately 18.5% year-to-date, significantly outperforming the Consumer Staples sector average return of 1.9% [4] Group 2 - BJ's Wholesale Club belongs to the Consumer Products - Staples industry, which includes 35 stocks and is currently ranked 98 in the Zacks Industry Rank, with an average loss of 6.6% this year [5] - Coca-Cola HBC, another outperforming stock in the Consumer Staples sector, has returned 53% year-to-date and has a Zacks Rank of 1 (Strong Buy) [4][5] - The Beverages - Soft drinks industry, to which Coca-Cola HBC belongs, is ranked 36 and has seen a positive movement of +2.6% this year [6]