Group 1: Company Performance - TimesSquare Capital Management reported a gross return of 11.28% and a net return of 11.02% for its "U.S. Small Cap Growth Strategy" in Q2 2025, compared to the Russell 2000 Growth Index return of 11.97% [1] - BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) had a one-month return of -5.27% but gained 20.67% over the last 52 weeks, closing at $97.44 per share with a market capitalization of $12.838 billion on September 10, 2025 [2] - BJ's Wholesale Club reported net sales of approximately $5.3 billion in Q2 2025, reflecting a growth of 3.4% year-over-year [4] Group 2: Investment Insights - The investment strategy for BJ's Wholesale Club focuses on value-oriented or specialty retailers, with strong momentum in consumables despite a slight decline in seasonal big-ticket categories [3] - Management's decision to maintain full-year guidance was viewed as conservative, and the company added to its position in BJ's following a -6% pullback [3] - Although BJ's is not among the 30 most popular stocks among hedge funds, it saw an increase in hedge fund portfolios holding its stock from 43 to 44 in the last quarter [4]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score identifies attractive stocks using financial ratios such as P/E, PEG, and Price/Sales, focusing on undervalued stocks [3] Growth Score - The Growth Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing metrics like weekly price changes and monthly earnings estimate shifts [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with strong value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988 [7][8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] BJ's Wholesale Club Analysis - BJ's Wholesale Club has become a preferred shopping destination, focusing on simplifying product assortments and enhancing digital capabilities [11] - The company is rated 3 (Hold) on the Zacks Rank, with a VGM Score of A and a Growth Style Score of B, indicating a projected year-over-year earnings growth of 6.7% for the current fiscal year [12] - BJ's earnings estimates have been revised upward, with a Zacks Consensus Estimate of $4.32 per share and an average earnings surprise of +16.4% [12][13]

Core Insights - BJ's Wholesale Club Holdings, Inc. is significantly enhancing its digital capabilities, with a 34% year-over-year increase in digitally enabled comparable sales in Q2 fiscal 2025, and a two-year stacked growth of 56% [1][8] - The company is focusing on integrating e-commerce with its physical stores, utilizing services like buy online pick up in club and same-day delivery to drive member engagement and retention [1][3] Digital Engagement and Membership Growth - Over 90% of digital orders are fulfilled by clubs, indicating a strong integration of online and in-store experiences [2][8] - Digitally engaged members are considered twice as valuable as in-club-only shoppers, leading to larger basket sizes and stronger renewal rates [2] - Membership reached a record 8 million, with higher-tier membership penetration at 41%, contributing to a record membership fee income of $123.3 million, up 9% from the previous year [2][3][8] Strategic Focus and Future Growth - The digital strategy aligns with BJ's broader goal of enhancing convenience and improving member retention, positioning the company well amid changing consumer habits [3][4] - Continued investment in digital capabilities is seen as essential for future growth, particularly as consumer preferences shift towards hybrid retail experiences [4] Comparative Industry Performance - BJ's Wholesale Club stock has increased by 24.7% over the past year, contrasting with a 10.4% decline in the industry [7] - The company's forward 12-month price-to-earnings ratio is 21.81, higher than the industry average of 20.12, indicating a premium valuation [9] Financial Estimates - The Zacks Consensus Estimate for BJ's current financial-year sales implies a year-over-year growth of 4.9%, while earnings per share are expected to grow by 6.7% [10] - Current quarter sales are estimated at $5.37 billion, with a year-over-year growth estimate of 5.39% [13]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________ FORM 10-Q _______________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 2, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38559 BJ'S WHOLESALE CLUB HOLDINGS, INC. (Exact name of registrant as spec ...

Core Viewpoint - The overall performance of the retail sector in Q2 shows resilience, but the outlook for the second half of the year is cautious due to uncertainties such as tariff impacts and potential price increases [1] Group 1: Q2 Performance - A majority of retail companies exceeded expectations in same-store sales, gross margin, and operating margin, with 57% of companies surpassing same-store sales forecasts and 50% exceeding gross and operating margin expectations [1] - Major retailers such as Home Depot (HD.US), Lowe's (LOW.US), Target (TGT.US), and Walmart (WMT.US) reported solid growth [1] Group 2: Guidance and Outlook - Only 36% of companies raised their full-year EPS guidance midpoint, while most chose to maintain or lower their forecasts, indicating management's concerns about inflation transmission, rising tariff costs, and consumer uncertainty [1] - Companies generally believe that the impact of tariffs will become fully apparent in Q4 [1] Group 3: Analyst Ratings - Goldman Sachs maintains a "Buy" rating on BJ's Wholesale Club (BJ.US), Home Depot, Lowe's, and Walmart, citing their strategies and market positions as favorable; Target is rated "Neutral" [1]

Core Insights - BJ's Wholesale Club reported second-quarter adjusted earnings per share of $1.14, exceeding the analyst consensus estimate of $1.09, while quarterly sales of $5.38 billion (+3.4% year over year) fell short of the expected $5.48 billion [1] - The company raised its fiscal year 2025 adjusted EPS guidance to $4.20–$4.35 from the previous range of $4.10–$4.30, which is slightly below the Street estimate of $4.31 [2] - Comparable club sales for fiscal year 2025, excluding gasoline sales, are projected to increase by 2.0% to 3.5% year-over-year [3] Analyst Ratings and Price Targets - UBS analyst Mark Carden maintained a Buy rating on BJ's Wholesale and lowered the price target from $135 to $125 [5] - DA Davidson analyst Michael Baker also maintained a Buy rating, reducing the price target from $140 to $123 [5] - Morgan Stanley analyst Simeon Gutman kept an Equal-Weight rating and cut the price target from $125 to $115 [5] - JP Morgan analyst Christopher Horvers maintained a Neutral rating and lowered the price target from $113 to $110 [5] - Citigroup analyst Paul Lejuez maintained a Buy rating and reduced the price target from $120 to $115 [5] - Evercore ISI Group analyst Greg Melich maintained an In-Line rating and lowered the price target from $117 to $110 [5]

Membership Growth - BJ's Wholesale Club has experienced a 55% increase in memberships since going public, reaching a new milestone of 8 million members, with 90% of those members renewing their subscriptions [1][2]. Sales Performance - Comparable store sales decreased by 0.3% when including fuel costs due to declining fuel prices, but increased by 2.3% when excluding fuel, attributed to strong store traffic [2]. Consumer Behavior - The CEO noted that consumers are showing resilience despite ongoing tariffs and inflation, but there are signs of consumer frustration and a search for value [2][3]. - Consumers are increasingly using coupons and seeking deals, with 42% redirecting spending towards cheaper merchants, indicating a shift in purchasing behavior [4]. Economic Impact - The "Minimalist" consumer category is emerging, characterized by increased home dining and reduced discretionary spending [5]. - Tariffs are impacting consumer behavior by increasing costs, leading to a greater focus on essentials and a reduction in discretionary spending [6].

Core Viewpoint - BJ's Wholesale Club is experiencing short-term challenges but is positioned for long-term growth, with a current trading price that reflects deep value levels [2][10]. Financial Performance - Revenue grew by 3.3%, slightly below larger competitor Walmart, with comparable sales (comps) increasing by 2.3% excluding fuel [6][8]. - Digital sales surged by 34%, significantly contributing to margin strength [7]. - Operating income rose by 6.3%, net income by 3.9%, and adjusted EPS by 4.6%, all outpacing top-line growth [8]. Market Position and Analyst Sentiment - Analysts have shifted sentiment from Hold to Moderate Buy, with a consensus price target of $113.18, indicating an 18.43% upside potential from the current price of $95.57 [4][10]. - The stock has been on an upward trend since 2020, gaining traction during the COVID-19 pandemic [3]. Growth Strategy and Guidance - The company reaffirmed its revenue growth targets and increased adjusted EPS guidance by six cents at the midpoint, aligning with consensus figures [9]. - BJ's Wholesale Club is accelerating store count growth and market penetration, setting the stage for future growth as consumer headwinds ease [2]. Shareholder Value - The company has a low leverage ratio with long-term debt less than 0.2 times equity, allowing for significant share repurchases [11]. - A buyback program of up to $950 million is in place, expected to reduce share count by about 1% on average per quarter [12].

Group 1 - BJ's Wholesale Club Holdings, Inc. experienced a challenging day on August 22nd, with management reporting declines in revenue, earnings per share, and adjusted earnings per share [1] - The company is part of the club warehouse sector, which is facing pressures that may impact its financial performance [1] Group 2 - Crude Value Insights provides an investment service focused on oil and natural gas, emphasizing cash flow and companies that generate it [1] - The service includes a stock model account, in-depth cash flow analyses of exploration and production firms, and live discussions about the sector [2] - A two-week free trial is available for new subscribers to explore the oil and gas investment opportunities [3]

Core Viewpoint - BJ's Wholesale Club Holdings, Inc. is conducting its Q2 2025 earnings conference call, indicating a focus on financial performance and strategic developments for the fiscal period [1][2][3]. Group 1: Company Representatives - The call features key company representatives including Bob Eddy (Chairman and CEO), Laura Felice (CFO), and Bill Werner (Executive VP of Strategy and Development) [3]. Group 2: Conference Call Structure - The conference call is coordinated by an operator, who introduces the session and provides instructions for participants [2].