Financial Data and Key Metrics Changes - Net sales for the fourth quarter reached $5.1 billion, an increase of 5.4% year over year on a comparable thirteen-week basis [6] - Merchandise comparable sales, excluding gas sales, increased by 4.6% year over year, driven by strong traffic [6] - Total comparable club sales for the fourth quarter, including gas sales, grew by 4% year over year [7] Business Line Data and Key Metrics Changes - The company reported robust traffic and market share gains across its clubs and gas stations, indicating strong performance in both areas [4] - General merchandise continues to show progress, with ongoing efforts to differentiate and grow this segment [5] Market Data and Key Metrics Changes - The company is experiencing strong traffic trends, with expectations that the first half of the fiscal year will be stronger than the second half [11] - The club industry as a whole is gaining market share as consumers seek alternatives to high grocery store prices [30] Company Strategy and Development Direction - The company’s four strategic priorities include improving member loyalty, enhancing the shopping experience, delivering value conveniently, and expanding its footprint [5] - The digital business is significantly contributing to growth, with 90% of digital orders fulfilled through clubs, enhancing convenience for members [16] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance for the fourth quarter and highlighted the importance of member value and strategic execution [4] - There are ongoing initiatives to optimize new store openings and improve overall productivity, with a focus on driving clubs to their mature run rates as quickly as possible [35] Other Important Information - The company is cautious about capital allocation and aims to grow sustainably without overextending, despite a significant capital expenditure budget for the year [30] - Management acknowledged challenges related to merchandise margins due to rising commodity prices but remains optimistic about overall performance [46] Q&A Session Summary Question: Can you provide more color around the cadence of the comp throughout the fourth quarter? - Management noted that the comp cadence was strong throughout the quarter, with positive trends in traffic [10][11] Question: How do you manage tariff risks? - Management provided context on past tariff management and indicated that they are monitoring the situation closely [14] Question: What is driving the strength of the digital business? - The strength is attributed to expanded online offerings and increased app usage, with a focus on convenience for members [15][16] Question: Can you frame your exposure to China and Mexico? - Management addressed concerns regarding exposure to these markets, particularly in relation to the food business [20] Question: What are your expectations for merchandise margins this year? - Management indicated that while margins were slightly below expectations due to rising commodity costs, they had a good year overall [46] Question: What is the long-term outlook for new store openings? - Management discussed the potential for continued growth in both existing and new markets, emphasizing a measured approach to expansion [28][30] Question: How is the Fresh 2.0 initiative performing? - Management highlighted the success of the Fresh 2.0 initiative and its positive impact on basket size and customer engagement [40]

Company Expansion Plans - BJ's Wholesale Club plans to open between 25 and 30 new locations over the next two fiscal years, with several in the Dallas-Fort Worth area as early as next year [1] - Recently opened locations include Brooksville, Florida, and Myrtle Beach, South Carolina, with a new location in Southern Pines, North Carolina, set to open soon [2] - Additional openings are planned in Delray Beach and Casselberry, Florida, Warner Robins, Georgia, and Sevierville, Tennessee, throughout the fiscal year [4] Job Creation - Each new location is expected to provide 100 to 150 job opportunities in the local communities [4] Membership Fee Increase - BJ's Wholesale Club will increase membership fees for the first time in seven years [3]

Financial Data and Key Metrics Changes - The company reported fourth quarter net sales of $5.1 billion, an increase of 5.4% year-over-year on a comparable 13-week basis [35] - Merchandise comparable sales, excluding gas sales, increased by 4.6% year-over-year, driven by strong traffic [35][36] - Adjusted earnings per share for the quarter was $0.93, reflecting strong membership and traffic, merchandising improvements, and digital conveniences [42][47] Business Line Data and Key Metrics Changes - The perishables, grocery, and sundries division delivered over 4% comparable growth in the fourth quarter, with perishables leading the way [8] - The general merchandise and services division saw comps grow by more than 5% in the fourth quarter, outpacing consumables for the first time since the pandemic [9] - Consumer electronics experienced high-single digit comps, driven by video games, tablets, and audio [10] Market Data and Key Metrics Changes - Comparable club sales for the fourth quarter, including gas sales, grew by 4% year-over-year, with comp gallons growing 3% year-over-year [36] - Digitally enabled comp sales grew by 26% year-over-year, contributing significantly to overall growth [37][24] Company Strategy and Development Direction - The company focuses on four strategic priorities: improving member loyalty, enhancing shopping experience, delivering value conveniently, and expanding footprint [12] - Membership fee income increased by 8.5%, with a renewal rate of 90%, indicating strong member engagement [13][14] - The company plans to open 25 to 30 new clubs over the next two fiscal years, with a robust pipeline of approved new clubs [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate economic and geopolitical uncertainties while focusing on long-term growth drivers [47][54] - The company expects fiscal 2025 comparable sales growth, excluding gas, to be between 2% to 3.5% [48] - Management noted that members remain value-conscious, which has led to increased spending across all income levels [32] Other Important Information - The company ended the fourth quarter with the lowest level of debt since its IPO and no near-term maturities [45] - Capital expenditures for fiscal 2024 were approximately $588 million, supporting the growing real estate pipeline [46] Q&A Session Summary Question: Can you provide more color around the cadence of the comp throughout the fourth quarter and outlook for 2025? - Management noted strong performance throughout November and December, with January being the strongest month, and traffic momentum continuing into Q1 [63][64] Question: Can you remind us how you managed tariff risks previously? - Management indicated that tariffs could raise prices and disrupt supply chains, but periods of rising prices often lead consumers to seek value, benefiting BJ's [74][75] Question: What is driving the strength of the digital business? - The digital growth is attributed to convenience features like BOPIC, curbside pickup, and same-day delivery, along with improvements in the app and website [78][82] Question: Can you share insights on new club performance and future growth? - Management expressed confidence in new club performance, with clubs opened since 2020 contributing significantly to comp sales [29][95] Question: What is the long-term potential for club openings? - Management sees opportunities for growth in various markets and plans to continue expanding at a measured pace [110][112]

We continue to rate BJ's Wholesale Club Holdings, Inc. (NYSE: BJ ) a cautiously optimistic hold. In late summer, shares underwent “healthy consolidation,” but we opined that the “long-term story remains intact.” The fact is that the company isLooking for more returns like this? That is what we do at BAD BEAT InvestingEnjoy more rapid-returns with our strategy to advance your savings and retirement timeline by embracing a blended trading and income approach!If you would like, you can try our service out and ...

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Financial Data and Key Metrics Changes - The company reported fourth quarter net sales of $5.1 billion, an increase of 5.4% year over year on a comparable thirteen-week basis [27] - Merchandise comparable sales, excluding gas sales, increased by 4.6% year over year, driven by strong traffic [27] - Adjusted earnings per share for the quarter was $0.93, reflecting strong membership and traffic, merchandising improvements, and digital conveniences [31] Business Line Data and Key Metrics Changes - The perishables, grocery, and sundries division delivered over 4% comparable growth in the fourth quarter, with perishables leading the way [8] - General merchandise and services division comparable sales grew by more than 5% in the fourth quarter, with notable performance in consumer electronics and toys [10][11] - Digitally enabled comparable sales grew by 26% year over year, contributing significantly to overall growth [28] Market Data and Key Metrics Changes - Membership reached an all-time high of over 7.5 million members, with a renewal rate of 90% [7] - The company opened seven new clubs and 12 gas stations in fiscal 2024, marking entry into its 21st state [21] - The company expects to open 25 to 30 clubs across the next two fiscal years, indicating robust growth plans [21] Company Strategy and Development Direction - The company focuses on four strategic priorities: improving member loyalty, enhancing shopping experience, delivering value conveniently, and expanding footprint [12] - Investments in digital conveniences and merchandising strategies are aimed at driving member engagement and loyalty [19][20] - The company is committed to maintaining a strong pricing position, offering up to 25% better pricing than grocery competitors [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainties and consumer behavior changes, emphasizing the importance of delivering value [24] - The company anticipates comp sales growth excluding gas of 2% to 3.5% for fiscal 2025, aligning with long-term growth expectations [36] - Management highlighted the importance of maintaining strong member engagement and loyalty as key drivers for future growth [19] Other Important Information - The company reported a year-over-year decrease in merchandise gross margins by approximately 10 basis points, attributed to rising costs in key products [30] - Capital expenditures for fiscal 2024 were approximately $588 million, supporting the growing real estate pipeline [33] - The company ended the fourth quarter with the lowest levels of debt since its IPO, indicating a strong balance sheet [33] Q&A Session Summary Question: Can you provide more color around the cadence of the comp throughout the fourth quarter and the outlook for 2025? - Management noted strong performance throughout the fourth quarter, with November and December being particularly good months, and January being the strongest [46] - Traffic momentum has continued into Q1, although there is increased sensitivity to discretionary purchasing due to economic uncertainty [47] Question: Can you remind us how you managed tariff risks in the past and your current thoughts on it? - Management acknowledged that tariffs could raise prices and disrupt supply chains but emphasized that periods of rising prices often benefit the company as consumers seek value [55] Question: What is driving the strength of the digital business? - The digital business is driven by convenience, with services like BOPIC, curbside pickup, and same-day delivery contributing to increased member spending [56] Question: Can you provide insights on the exposure to China and Mexico? - The company has limited exposure to China, with only a few percent of its business imported directly, while exposure to Canada and Mexico is greater but not negatively impactful [66] Question: How is the performance of new clubs and the confidence in accelerating growth? - Management expressed strong satisfaction with the performance of new clubs, which are exceeding plans on both top and bottom lines, and highlighted a robust pipeline for future openings [70]

BJ's Wholesale Club (BJ) came out with quarterly earnings of $0.93 per share, beating the Zacks Consensus Estimate of $0.87 per share. This compares to earnings of $1.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.90%. A quarter ago, it was expected that this wholesale membership warehouse operator would post earnings of $0.91 per share when it actually produced earnings of $1.18, delivering a surprise of 29.67%.Over the ...

Core Viewpoint - BJ's Wholesale Club Holdings Inc. provided a full-year outlook that aligns with Wall Street expectations, which is a positive signal in contrast to many competitors [1] Financial Performance - The company exceeded expectations for all three key earnings metrics in its fourth quarter [1] - BJ's Wholesale Club posted the fastest growth in comparable-club sales in nearly two years [1]

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].