BJ's Wholesale Revenues Rise as Premium Members Hit Record

Financial Performance - BJ's Wholesale Club reported a 4.7% increase in net sales to $5 billion for fiscal Q1 2025, with comparable sales (excluding gas) up 3.9% and adjusted earnings per share (EPS) of $1.14. Operating income increased by 27% and net income rose by 35% year over year [1]. Membership Growth - The share of higher-tier memberships grew by over 100 basis points sequentially to surpass 40% for the first time, driven by product and benefit enhancements, with a January fee increase not affecting uptake [2][3]. This shift to premium membership tiers enhances customer lifetime value, improves renewal rates, and raises average spend [3]. Digital Sales and Engagement - Digitally enabled comparable sales surged by 35% year over year, contributing significantly to total sales growth, and have maintained double-digit growth for four consecutive years. Enhanced fulfillment technology utilizing AI and robotics reduced order picking time by over 45% [4][5]. Expansion and Real Estate Strategy - The company opened five new clubs and four gas stations during the quarter, including a new location in Staten Island, with plans for 25 to 30 new clubs over the next two years. There was a 2% increase in comparable gas gallons, contrasting with a decline in broader U.S. industry volumes [6][7]. Future Outlook - Management reaffirmed fiscal 2025 guidance for comparable sales growth (excluding gas) of 2% to 3.5% and adjusted EPS of $4.10 to $4.30, exercising caution due to potential macroeconomic conditions. The first half of fiscal 2025 is expected to be the strongest for same-store sales comps, with a focus on margin discipline amidst ongoing investments [8].