Financial Performance - Net sales for the fourth quarter of fiscal 2024 were $5,161.5 million, a decline of 1.7% compared to $5,248.9 million in the fourth quarter of fiscal 2023[4] - Comparable club sales increased by 4.0% year-over-year in the fourth quarter and 2.5% for the full fiscal year, with a 4.6% increase excluding gasoline sales in the fourth quarter[9] - Net income for the fourth quarter decreased to $122.7 million, down 15.9% from $145.9 million in the same quarter last year, while full-year net income increased to $534.4 million[9] - Operating income for the fourth quarter was $178.4 million, a decrease of 16.6% from $214.0 million in the fourth quarter of fiscal 2023[4] - Adjusted EBITDA decreased by 9.0% to $264.6 million in the fourth quarter of fiscal 2024, while it increased by 0.8% to $1.09 billion for the full fiscal year[9] - Operating income for the 52 weeks ended February 1, 2025, was $772,206, down 3.52% from $800,419 for the previous year[18] - Net income for the 52 weeks ended February 1, 2025, was $534,417, a slight increase of 2.59% compared to $523,741 for the 53 weeks ended February 3, 2024[22] Membership and Fees - Membership fee income increased by 7.9% year-over-year to $117.0 million in the fourth quarter of fiscal 2024, and $456.5 million for the full fiscal year, up 8.5% from $420.7 million in fiscal 2023[5] - The company achieved a 90% tenured member renewal rate during fiscal 2024, indicating strong member retention[5] - Membership fee income increased to $116,990 for the 13 weeks ended February 1, 2025, up 7.36% from $108,405 for the same period last year[18] Future Projections - The company expects comparable club sales, excluding gasoline, to increase by 2.0% to 3.5% year-over-year in fiscal 2025[10] - Capital expenditures are projected to be approximately $800 million, driven by the construction of new clubs and a distribution center[10] Cash Flow and Investments - Net cash provided by operating activities for the 52 weeks ended February 1, 2025, was $900,872, an increase of 25.23% from $718,883 for the previous year[22] - The company reported a net cash used in investing activities of $589,566 for the 52 weeks ended February 1, 2025, compared to $454,765 for the previous year, indicating increased investment activity[22] - The company reported net cash provided by operating activities of $271,917 for the 13 weeks ended February 1, 2025, slightly down from $274,352 for the previous year[40] - Adjusted free cash flow for the 13 weeks ended February 1, 2025, was $111,487, a decrease of 28.3% compared to $155,228 for the 14 weeks ended February 3, 2024[40] Debt and Leverage - Total debt as of February 1, 2025, was $573,807, with net debt calculated at $545,535 after accounting for cash and cash equivalents of $28,272[41] - The net debt to LTM adjusted EBITDA ratio stood at 0.5x, indicating a stable leverage position[41] Operational Efficiency - BJ's Wholesale Club continues to focus on operational efficiency and cost management strategies to navigate the current market challenges[36] - Stock-based compensation expense increased to $18,158 for the 13 weeks ended February 1, 2025, from $10,010 in the previous year[37] - The company incurred restructuring charges of $1,151 for the 13 weeks ended February 1, 2025, compared to $5,512 for the 14 weeks ended February 3, 2024[37]

Core Viewpoint - BJ's Wholesale Club Holdings, Inc. is expected to report a slight decline in revenue and a significant decrease in earnings per share for the fourth quarter of fiscal 2024, with revenues estimated at $5.35 billion, reflecting a 0.1% drop year-over-year, and earnings per share projected at 88 cents, indicating a 20.7% decline from the previous year [1][2]. Revenue and Earnings Expectations - The Zacks Consensus Estimate for BJ's revenue is $5.35 billion, which represents a 0.1% decrease from the prior year's figure [1]. - The earnings per share estimate has increased slightly to 88 cents, but this still suggests a year-over-year decline of 20.7% [2]. Membership and Sales Growth - BJ's Wholesale is focusing on simplifying product assortments, enhancing marketing and merchandising, and expanding into high-demand categories, which is expected to contribute to a 6.3% increase in membership fee income for the quarter [4]. - Merchandise comparable club sales are anticipated to rise by 2.8% for the quarter, driven by better pricing, private-label offerings, and digital solutions [5]. Cost and Margin Challenges - The company is facing challenges such as cautious consumer spending and a projected 4.2% increase in selling, general and administrative (SG&A) expenses, which may lead to an operating margin contraction of 80 basis points [6]. Earnings Prediction Model - The Zacks model indicates a likelihood of an earnings beat for BJ's Wholesale, supported by a positive Earnings ESP of +4.28% and a Zacks Rank of 2 (Buy) [7][8].

Core Insights - BJ's Wholesale Club is expected to report quarterly earnings of $0.88 per share, a decline of 20.7% year-over-year, with revenues forecasted at $5.35 billion, reflecting a decrease of 0.1% compared to the same period last year [1] Earnings Estimates - The consensus EPS estimate has been revised 1.2% higher in the last 30 days, indicating a collective reevaluation by analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and have a strong correlation with short-term stock price performance [3] Revenue Projections - Analysts project 'Revenues- Net sales' to reach $5.15 billion, suggesting a year-over-year change of -1.9% [4] - The average estimate for 'Revenues- Membership fee income' is $114.05 million, indicating a year-over-year increase of 5.2% [5] Operational Metrics - Analysts expect the number of 'Warehouse Clubs' to increase to 254 from 244 in the same quarter last year [5] - The consensus for 'Gas Stations' is projected to reach 188, up from 175 in the same quarter of the previous year [5] Stock Performance - BJ's shares have increased by 2.2% over the past month, contrasting with a -1.3% change in the Zacks S&P 500 composite [6] - With a Zacks Rank 2 (Buy), BJ is anticipated to outperform the overall market in the near future [6]

Core Viewpoint - BJ's Wholesale Club is anticipated to report a year-over-year decline in earnings due to lower revenues, with the consensus outlook indicating a potential impact on its near-term stock price [1][2]. Earnings Expectations - The earnings report is scheduled for March 6, 2025, with expectations of quarterly earnings at $0.86 per share, reflecting a year-over-year decrease of 22.5%. Revenues are projected to be $5.35 billion, down 0.1% 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 reassessed their initial estimates during this period [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for BJ's is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.79%, indicating a bullish outlook from analysts [10][11]. Historical Performance - BJ's has a strong earnings surprise history, having beaten consensus EPS estimates in the last four quarters, including a notable surprise of +29.67% in the last reported quarter [12][13]. Investment Considerations - While BJ's is positioned as a compelling earnings-beat candidate, investors are advised to consider other factors that may influence stock performance beyond just earnings results [14][16].

Core Viewpoint - BJ's Wholesale Club is showing potential for a bullish trend as it has crossed above the 20-day moving average, indicating a key level of support and a positive short-term outlook [1][2]. Technical Analysis - The stock has recently moved 6.6% higher over the last four weeks, suggesting a possible rally ahead [3]. - The 20-day simple moving average is a significant trading tool that helps in identifying trend reversals and smoothing out price fluctuations [1][2]. Earnings Estimates - BJ's earnings estimates have seen positive revisions, with no estimates decreasing in the past two months and two estimates increasing, leading to a consensus estimate rise [3]. - The company currently holds a Zacks Rank of 2 (Buy), reinforcing the bullish sentiment [3]. Investment Outlook - Given the technical indicators and positive earnings revisions, BJ's Wholesale Club may present further investment opportunities in the near future [4].

Company Overview - BJ's Wholesale Club currently holds a Momentum Style Score of B, indicating potential for strong performance in the momentum investing strategy [3][12] - The company has a Zacks Rank of 2 (Buy), which suggests it is expected to outperform the market [4][12] Price Performance - Over the past week, BJ's shares have increased by 1.46%, while the Zacks Consumer Services - Miscellaneous industry remained flat [6] - In the last month, BJ's shares have risen by 10.82%, significantly outperforming the industry's 1.51% [6] - Over the past quarter, BJ's shares have increased by 9.02%, and over the last year, they have gained 52.63%, compared to the S&P 500's increases of 4.18% and 24.21%, respectively [7] Trading Volume - BJ's average 20-day trading volume is 1,339,006 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Estimates - In the past two months, two earnings estimates for BJ have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from $3.95 to $3.96 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions during the same period [10]

Group 1 - BJ's Wholesale Club is part of the Consumer Discretionary sector, which includes 265 individual stocks and holds a Zacks Sector Rank of 2 [2] - The Zacks Rank system highlights stocks with characteristics to outperform the market, and BJ's currently has a Zacks Rank of 2 (Buy) [3] - BJ's year-to-date return is 18.6%, outperforming the average return of 8.7% for Consumer Discretionary companies [4] Group 2 - BJ's Wholesale Club belongs to the Consumer Services - Miscellaneous industry, which has gained about 7.1% this year, indicating BJ's better performance within this group [6] - Peloton, another stock in the Consumer Discretionary sector, has a year-to-date return of 12.3% and also holds a Zacks Rank of 2 (Buy) [5] - The consensus EPS estimate for BJ's has remained unchanged over the past three months, suggesting stable analyst sentiment [4]

Core Insights - BJ's Wholesale Club Holdings, Inc. is positioned for growth through digital innovation and an expanding membership base, enhancing its competitive edge in the membership warehouse club industry [1] Digital Innovation - BJ's has invested significantly in its digital infrastructure to improve member connectivity and streamline shopping experiences, including same-day delivery, curbside pickup, and buy-online, pick-up-in-club services [2] - The company has developed a digital ecosystem with platforms like BJs.com, BerkleyJensen.com, WellsleyFarms.com, and a mobile app, allowing members to browse, purchase products, use digital coupons, and track savings [2] Delivery and Convenience - BJ's has partnered with DoorDash, Instacart, and Roadie for on-demand delivery services and introduced the Same-Day Select program, offering members flexible delivery options [3] - Digitally engaged members shop more frequently and have higher average purchase values, with digitally enabled comparable sales increasing by 30% in Q3 of fiscal 2024 [4] Membership Model - BJ's has refined its marketing and merchandising strategies, diversifying private-label offerings and expanding into high-demand product categories, leading to increased membership signups and renewals [5] - In Q3 of fiscal 2024, BJ's reported an 8.4% year-over-year increase in membership fee income, driven by strong renewal rates and successful acquisition efforts [6] Financial Outlook - BJ's anticipates continued growth in membership revenues as it opens new clubs, with the first membership fee increase in seven years effective January 1, 2025 [6] - The company projects mid-single-digit percentage growth in total revenue and low-to-mid single-digit percentage increases in comparable club sales, excluding gasoline sales [9]

Core Insights - BJ's Wholesale Club is expanding its distribution capabilities with a new 500,000-square-foot distribution center in Commercial Point, OH, set to open in early 2027, which will enhance its supply chain and support its growing network of clubs [1][7][9] - The company has opened over 30 new clubs in the last five years, with the upcoming launch of its 250th club in Louisville, KY, marking a significant milestone in its expansion strategy [2][4] - BJ's has seen an 8.4% year-over-year increase in membership fee income in Q3 of fiscal 2024, with total membership growing by 35% over the past five years, reaching 7.5 million members [4] Distribution Center and Supply Chain - The new distribution center will utilize advanced automation solutions from Swisslog, including automated pallet storage and mixed-case pallet building, aimed at improving logistical efficiency and inventory management [3][7] - The facility is located on a 125-acre site, allowing for future expansion, which will further enhance BJ's logistical capabilities and support its expanding network [8] Growth Strategy - BJ's Wholesale Club is focused on simplifying product assortments, enhancing marketing and merchandising, and expanding into high-demand categories to drive growth [4][9] - The company is building a strong own-brand portfolio and investing in omnichannel capabilities, which has led to increased membership signups and renewals [4][9] Stock Performance - Over the past three months, BJ's stock has gained 16.1%, outperforming the industry and the S&P 500, which grew by 3.8% and 4%, respectively [10]

Core Insights - BJ's Wholesale Club Holdings, Inc. is set to open its 250th club in Louisville, KY, on January 31, 2025, marking its first location in Kentucky and expanding its presence to the 21st state [1] - The company offers significant savings to members, with discounts of up to 25% off regular grocery prices and a risk-free shopping experience backed by a 100% money-back membership guarantee [2] - BJ's continues to enhance its omnichannel capabilities, resulting in an 8.4% year-over-year increase in membership fee income for Q3 of fiscal 2024, with total membership reaching 7.5 million, a 40% increase since 2018 [5] Membership and Sales Performance - BJ's comparable club sales (excluding gas) increased by 3.8% in the fiscal third quarter, driven by strong traffic, which contributed over 4 percentage points to this growth [6] - The company's digital transformation efforts have led to a 30% growth in digitally enabled comparable sales in the fiscal third quarter, supported by services like buy-online-pickup-in-club and curbside pickup [7] Stock Performance and Valuation - BJ's shares have gained 14% over the past three months, outperforming the industry and the S&P 500, which grew by 1% and 4.4%, respectively [8] - The stock is currently trading at a forward 12-month price-to-earnings ratio of 23.31, significantly above the industry average of 7.47, indicating a premium valuation [11]