BJ’s Wholesale Club (BJ) - 2026 Q2 - Quarterly Results

Q2 2025 Financial Performance Overview 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 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][6] - Comparable club sales decreased by 0.3% year-over-year, primarily due to declining retail fuel prices[6][7] - Excluding gasoline sales, comparable club sales increased by 2.3% year-over-year, led by traffic growth[6][7] - Digitally enabled comparable sales demonstrated strong performance with 34% growth, contributing to a two-year stacked comparable growth of 56%[6] Detailed Financial Analysis 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 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] Profitability and Expense Analysis 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] - Merchandise gross margin rate (excluding gasoline and MFI) increased by 10 basis points year-over-year[7] - 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] 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 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] - YTD 2025: Repurchased 430,000 shares for $47.4 million[7] - Remaining Authorization: $952.6 million available for future repurchases[7] Fiscal 2025 Outlook 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 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] Consolidated Financial Statements 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 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 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 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 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 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][29] - Management uses these non-GAAP measures to supplement GAAP performance in evaluating business strategies, making budget decisions, and establishing incentive compensation[30] GAAP to Non-GAAP Reconciliations 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 |