BJ’s Wholesale Club (BJ) - 2025 Q4 - Annual Results

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]