BJ’s Wholesale Club (US:BJ) ZACKS·2025-05-19 14:36Core Viewpoint - BJ's Wholesale Club Holdings, Inc. is expected to report an increase in both revenue and earnings for the first quarter of fiscal 2025, driven by strategic investments and a value-driven model [1][2][3]. Revenue Expectations - The Zacks Consensus Estimate for BJ's revenue is $5.18 billion, reflecting a 5.2% increase from the previous year [1]. - Merchandise comparable club sales are anticipated to rise by 3.7% for the quarter [4]. Earnings Expectations - The consensus estimate for earnings per share is stable at 91 cents, indicating a 7.1% year-over-year increase [2]. - BJ's has a trailing four-quarter earnings surprise of 12%, with the last quarter exceeding estimates by 6.9% [3]. Membership Growth - The company has consistently grown its member base, supported by strong renewal rates and upgrades to higher-tier memberships [3]. - Membership fee income is projected to increase by 7.7% for the quarter [3]. Strategic Initiatives - BJ's Fresh 2.0 initiative has improved produce quality and merchandising, enhancing member engagement and visit frequency [4]. - The company is focusing on better pricing, private-label offerings, and digital solutions to drive sales [4]. Challenges - Consumer spending remains cautious, potentially impacting discretionary categories [5]. - SG&A expenses are expected to increase by 5.4% year-over-year, which may affect margins [5]. - Competition from traditional grocers and warehouse clubs could pressure BJ's pricing power [5]. Earnings Prediction Model - The Zacks model indicates a likely earnings beat for BJ's, supported by a positive Earnings ESP of +0.77% and a Zacks Rank of 3 [6][7].