BJ’s Wholesale Club (US:BJ)2025-11-21 12:02Financial Performance - Net sales for the third quarter of fiscal 2025 reached $5.22 billion, a 4.8% increase from $4.98 billion in the same period last year[3] - Total revenues for the third quarter were $5.35 billion, up 4.9% from $5.10 billion in the same quarter of fiscal 2024[3] - Net sales for the thirteen weeks ended November 1, 2025, were $5,221,866, an increase of 4.8% compared to $4,984,385 for the same period in 2024[17] - Total revenues increased to $5,348,163 for the thirteen weeks ended November 1, 2025, compared to $5,099,364 for the same period in 2024, marking a 4.9% growth[17] Membership and Fees - Membership fee income rose by 9.8% year-over-year to $126.3 million in the third quarter, contributing to a total of $370.0 million for the first nine months of fiscal 2025, up from $339.5 million[6] - Membership fee income rose to $126,297 for the thirteen weeks ended November 1, 2025, up from $114,979 in the prior year, reflecting a growth of 9.4%[17] Earnings and Income - Adjusted EPS for the third quarter was $1.16, a decrease of 1.7% from $1.18 in the prior year, while adjusted EPS for the first nine months increased by 10.3% to $3.44[3] - Adjusted EPS guidance for fiscal 2025 has been increased to a range of $4.30 to $4.40[13] - Basic income per share attributable to common stockholders for the thirty-nine weeks ended November 1, 2025, was $3.44, up from $3.11 in the prior year, reflecting a 10.6% increase[17] - For the thirteen weeks ended November 1, 2025, BJ's Wholesale Club reported a net income of $152,050,000, compared to $155,748,000 for the same period in 2024, reflecting a decrease of approximately 1.1%[35] - Adjusted net income for the same period was $153,126,000, down from $157,254,000 in the prior year, resulting in an adjusted EPS of $1.16 compared to $1.18[35] - For the thirty-nine weeks ended November 1, 2025, net income was $452,523,000, an increase from $411,755,000 in the previous year[35] Operating Income and Expenses - Operating income decreased by 4.8% to $218.4 million in the third quarter, while net income fell by 2.4% to $152.1 million[3] - Adjusted EBITDA for the third quarter was $301.4 million, a decrease of 2.2% from $308.3 million in the prior year[7] - Adjusted EBITDA for the thirteen weeks ended November 1, 2025, was $301,385,000, slightly lower than $308,292,000 for the same period in 2024[37] - The company incurred restructuring charges of $1,495,000 for the thirteen weeks ended November 1, 2025, compared to $2,091,000 in the same period of 2024[37] - BJ's Wholesale Club's stock-based compensation expense for the thirty-nine weeks ended November 1, 2025, was $33,586,000, up from $29,640,000 in the prior year[37] Future Outlook - The company plans to add seven new clubs in the fourth quarter of fiscal 2025[6] - The company expects comparable club sales, excluding gasoline, to increase by 2.0% to 3.0% year-over-year for fiscal 2025[13] Cash Flow and Assets - Cash and cash equivalents at the end of the period increased to $45,119 compared to $33,873 at the end of the previous year, showing a growth of 33.4%[21] - Total assets as of November 1, 2025, were $7,545,800, an increase from $7,216,222 as of November 2, 2024, representing a growth of 4.6%[19] - Current liabilities decreased to $2,699,715 from $2,742,024 in the previous year, a reduction of 1.5%[19] - The company reported net cash provided by operating activities of $639,101 for the thirty-nine weeks ended November 1, 2025, compared to $628,955 in the prior year, reflecting a 1.8% increase[21] - The company reported net cash provided by operating activities of $181,144,000 for the thirteen weeks ended November 1, 2025, compared to $206,757,000 in the prior year[40] - Adjusted free cash flow for the thirteen weeks ended November 1, 2025, was $(13,739,000), a decrease from $18,824,000 in the same period of 2024[40] Debt and Leverage - Total debt as of November 1, 2025, was $599,026,000, with net debt calculated at $553,907,000 after accounting for cash and cash equivalents[41] - The net debt to LTM adjusted EBITDA ratio stands at 0.5x, indicating a stable leverage position[41]