BJ’s Wholesale Club (US:BJ) zacks.com·2024-05-21 15:55Core Viewpoint - BJ's Wholesale Club Holdings, Inc. is expected to report its first-quarter fiscal 2024 results on May 23, with strong growth in membership, digital sales, and private label brands presenting an intriguing investment opportunity [1] Revenue and Earnings Outlook - The Zacks Consensus Estimate projects revenues to reach $4,862 million, reflecting a 2.9% increase year-over-year [2] - Earnings per share are estimated to be stable at 84 cents, indicating a marginal decrease of 1.2% from the previous year [2] Membership Growth and Fee Income - Membership fee income increased by 6.5% year-over-year in the fourth quarter of fiscal 2023, driven by strong renewal rates and successful membership acquisition [6] - Anticipated growth rates for membership fee income are approximately 6.3% and 6% for the current and next fiscal years, respectively [6] Digital Capabilities and Customer Engagement - The company is focusing on expanding its digital capabilities, offering services like same-day delivery and curbside pick-up, which enhances the shopping experience [7] - Digitally enabled comparable sales rose by 28% in the fourth quarter, with clubs fulfilling about 90% of digitally enabled sales [8] Strategic Initiatives and Market Position - BJ's Wholesale Club is committed to enhancing marketing and merchandising capabilities, which has significantly driven membership signups and renewals [5] - The company aims for mid-single-digit revenue growth and high-single to low-double-digit earnings per share increases, indicating a strong long-term growth potential [9] Valuation and Market Performance - The company currently trades at a forward 12-month price-to-earnings ratio of 20.11, higher than the industry median of 16.89, reflecting its strong market position [10][11] - BJ's Wholesale Club shares have risen by 22.7% over the past six months, outperforming the industry's growth of 14% [9]