BJ’s Wholesale Club Holdings, Inc. BJ reported a second-quarter revenue miss on Friday.The firm reported second-quarter adjusted earnings per share of $1.14, beating the analyst consensus estimate of $1.09. Quarterly sales of $5.38 billion (+3.4% year over year) missed the Street view of $5.48 billion."We enter the back half of the year on solid footing and confident in our ability to deliver strong results," said Bob Eddy, Chairman and CEO, BJ's Wholesale Club. "We are on a powerful trajectory and our team ...

Core Viewpoint - BJ's Wholesale Club is experiencing short-term challenges but is positioned for long-term growth, with a current trading price that reflects deep value levels [2][10]. Financial Performance - Revenue grew by 3.3%, slightly below larger competitor Walmart, with comparable sales (comps) increasing by 2.3% excluding fuel [6][8]. - Digital sales surged by 34%, significantly contributing to margin strength [7]. - Operating income rose by 6.3%, net income by 3.9%, and adjusted EPS by 4.6%, all outpacing top-line growth [8]. Market Position and Analyst Sentiment - Analysts have shifted sentiment from Hold to Moderate Buy, with a consensus price target of $113.18, indicating an 18.43% upside potential from the current price of $95.57 [4][10]. - The stock has been on an upward trend since 2020, gaining traction during the COVID-19 pandemic [3]. Growth Strategy and Guidance - The company reaffirmed its revenue growth targets and increased adjusted EPS guidance by six cents at the midpoint, aligning with consensus figures [9]. - BJ's Wholesale Club is accelerating store count growth and market penetration, setting the stage for future growth as consumer headwinds ease [2]. Shareholder Value - The company has a low leverage ratio with long-term debt less than 0.2 times equity, allowing for significant share repurchases [11]. - A buyback program of up to $950 million is in place, expected to reduce share count by about 1% on average per quarter [12].

Group 1 - BJ's Wholesale Club reported $5.38 billion in revenue for the quarter ended July 2025, a year-over-year increase of 3.4% [1] - The EPS for the same period was $1.14, compared to $1.09 a year ago, with an EPS surprise of +3.64% [1] - The reported revenue was below the Zacks Consensus Estimate of $5.46 billion, resulting in a surprise of -1.51% [1] Group 2 - Comparable club sales, excluding gasoline sales, were 2.3%, below the 3.3% average estimate from seven analysts [4] - Net sales revenue was $5.26 billion, compared to the $5.35 billion average estimate, representing a year-over-year change of +3.2% [4] - Membership fee income was $123.33 million, slightly below the estimated $123.44 million, but showed a +9% change compared to the year-ago quarter [4] Group 3 - BJ's shares returned +2.5% over the past month, outperforming the Zacks S&P 500 composite's +1.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Financial Data and Key Metrics Changes - Net sales for Q2 were approximately $5.3 billion, growing 3.2% year over year [20] - Total comparable club sales, including gas, decreased 0.3% year over year, while merchandise comp sales, excluding gas, increased by 2.3% year over year [21] - Adjusted EBITDA grew approximately 8% year over year to $303.9 million, reflecting strong top-line growth and increased merchandise margins [25] - Adjusted earnings per share for Q2 were $1.14, an increase of 4.6% year over year [26] Business Line Data and Key Metrics Changes - The perishables grocery and sundries division saw a comp growth of 3% year over year, driven by strength in comp units [21] - The general merchandise and services division experienced a comp decrease of 2.2%, with discretionary categories like recreation and lawn and garden facing double-digit declines [7][21] - Digital sales grew 34% year over year and 56% on a two-year stack, with over 90% of digital sales fulfilled by clubs [22] Market Data and Key Metrics Changes - The membership base reached 8 million, representing a 55% growth since the IPO seven years ago [5][10] - Higher tier membership penetration improved by 50 basis points to an all-time high of 41% [11][49] - Comp gallons in the gas business were flat year over year, significantly outperforming the industry, which declined low single digits [24] Company Strategy and Development Direction - The company is focused on enhancing member loyalty, improving the shopping experience, and expanding its footprint [10][15] - Investments in the Fresh 2.0 initiative are driving share gains across consumables, particularly in perishables [12][85] - The company plans to open eight more clubs in the second half of the fiscal year, with a pipeline of 25 to 30 new clubs over the next two years [15][28] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer sentiment has turned cautious due to macroeconomic uncertainties, but total spending increased on a per member basis [8][56] - The company remains confident in its ability to navigate the current environment, citing record high membership metrics and ongoing share gains [18][29] - Management acknowledged the potential impact of tariffs and inflation on consumer spending patterns but believes the business model remains relevant [15][68] Other Important Information - Membership fee income grew 9% to approximately $123.3 million, benefiting from strong acquisition and retention [23] - Inventory levels decreased by about 2% year over year, with in-stock levels improving by approximately 50 basis points [26][27] - The company is maintaining a disciplined capital allocation strategy, focusing on investments that support long-term growth [28][29] Q&A Session Summary Question: How did the second quarter play out, and what are the expectations for the back half? - Management noted that the quarter strengthened as weather improved, with May being weak but June and July showing better performance [37][40] Question: What is the profile of new members and expectations for membership fee income? - The company is pleased with membership growth, reaching 8 million members, and high renewal rates contribute to membership fee income growth [46][49] Question: What insights can be shared about changes in consumer behavior during the quarter? - Management observed a resilient consumer but noted increased caution across all income levels, with a higher propensity to seek value [56][58] Question: How is the general merchandise outlook for the back half of the year? - The general merchandise team is managing through headwinds and preparing for the back half, with a focus on maintaining inventory prudence [90][91] Question: Is the company taking a more cautious approach to inventory ordering in the back half? - Management confirmed a cautious approach to discretionary categories due to potential price increases from tariffs, while still being aggressive in gaining market share [96][100]

Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period. Considering buying BJ stock? Here's what analysts think: BJ's Wholesale Club Holdings, Inc. BJ will release earnings results for the second quarter, before the opening bell on Friday, Aug. 22. Analysts expect the Marlborough, Massachusetts-based company to report quarterly earnings at $1.09 per share, versus $1.09 per share in the year-ago period. BJ's Wholesale projects to report quarterly revenue of $5. ...

Core Insights - Walmart Inc. faces challenges in improving sales and accelerating profit amid tariff pressures, with membership income potentially providing a solution [1][4] Membership Income Growth - In Q1, Walmart's membership fee income increased by 14.8%, driven by strong growth in Walmart+ subscriptions and Sam's Club renewals, particularly in Sam's Club China where membership income grew over 40% [2][9] - Membership income is becoming a crucial part of Walmart's profit strategy, offering stability that traditional retail sales often lack [2][9] Consumer Engagement and Loyalty - Walmart+ subscribers are increasingly engaging with delivery and digital shopping, while Sam's Club Plus members are renewing at higher rates and utilizing digital tools like Scan & Go, enhancing customer loyalty and efficiency [3][9] Tariff Pressures and Profitability - The shift towards fee-based and service-driven profits is vital as tariff pressures increase, particularly in categories like electronics and toys, allowing Walmart to navigate pricing challenges without compromising its value proposition [4][9] Upcoming Earnings Focus - As Walmart prepares to unveil its second-quarter results, attention will be on whether membership growth can significantly drive profitability [5] Comparative Membership Growth - Costco reported a 10.4% year-over-year increase in membership fee income, totaling $1,240 million, with a 92.7% renewal rate in the U.S. and Canada [6] - BJ's Wholesale Club saw an 8.1% year-over-year increase in membership fee income to $120.4 million, with a high renewal rate of 90% [7] Financial Estimates - The Zacks Consensus Estimate for Walmart's second-quarter sales implies a year-over-year growth of 3.7%, while earnings per share are expected to grow by 9% [8] - Walmart's shares have rallied 35.6% in the past year, closely aligning with the industry's growth of 35.5% [11] Valuation Metrics - Walmart's forward 12-month price-to-earnings ratio is 36.12, higher than the industry's 33.13, indicating a relatively high valuation [12]

Core Viewpoint - BJ's Wholesale Club is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The earnings report is expected on August 22, with a consensus EPS estimate of $1.10, reflecting a +0.9% change year-over-year. Revenues are projected to be $5.46 billion, up 4.9% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial projections during this period [4]. Earnings Surprise Prediction - The Most Accurate Estimate for BJ's is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +3.45%, suggesting a bullish outlook from analysts [12]. Historical Performance - In the last reported quarter, BJ's exceeded the expected earnings of $0.91 per share by delivering $1.14, achieving a surprise of +25.27%. The company has beaten consensus EPS estimates in all of the last four quarters [13][14]. Investment Considerations - While BJ's is seen as a strong candidate for an earnings beat, investors are advised to consider other factors that may influence stock performance beyond just earnings results [15][17].

Costco Wholesale Corporation COST shares are trading relatively flat on Thursday.On Wednesday, the company reported net sales of $20.89 billion for the retail month of July, an increase of 8.5% from $19.26 billion last year.JP Morgan analyst Christopher Horvers reiterated the Overweight rating on the stock, raising the price forecast from $1,115 to $1,160.Horvers noted that Canada and Other International core comps significantly outpaced Street forecasts—9.1% versus 5.7% and 7.5% versus 6.4%—with the Northw ...

Key Takeaways COST reported $13.8B in cash as of May 11, 2025, up sharply from $9.9B on Sept. 1, 2024.Costco's total current assets of $38.2B exceed current liabilities of $37.6B, ensuring liquidity.COST's equity rose to $27.1B from $23.6B, reflecting retained earnings and internal financing strength.Costco Wholesale Corporation’s (COST) balance sheet reveals a robust financial position, highlighted by strong liquidity and prudent asset management. As of May 11, 2025, the company reported $13,836 million in ...

Costco Wholesale (COST) 2025 Update Summary Industry Overview - The call pertains to the retail industry, specifically focusing on Costco Wholesale's performance during the five-week retail month of June 2025. Key Financial Metrics - **Net Sales**: Reported net sales for June 2025 were $26.44 billion, representing an 8% increase from $24.48 billion in June 2024 [2] - **Comparable Sales**: - US: 4.7% - Canada: 6.7% - Other International: 10.9% - Total Company: 5.8% - E-commerce: 11.5% [2] - **Comparable Sales Excluding Gas and FX**: - US: 5.5% - Canada: 7.9% - Other International: 8.2% - Total Company: 6.2% - E-commerce: 11.2% [3] Traffic and Transaction Insights - **Traffic Growth**: Comp traffic increased by 3.4% worldwide and 2.8% in the US [4] - **Average Transaction Value**: - Worldwide average transaction value increased by 2.4%, and by 2.8% when excluding gas deflation and foreign exchange impacts [5] Regional Performance - **Strongest US Regions**: Northwest, Midwest, and Southeast showed the best comparable sales performance [5] - **International Performance**: Australia, Mexico, and Taiwan reported the strongest results among other international markets [6] Merchandising Highlights - **Food Categories**: - Foods and sundries showed positive mid-single-digit growth - Fresh foods increased by high single digits, with meat and produce being top performers [6][7] - **Non-food Categories**: - Positive mid to high single-digit growth, with jewelry, majors, and gift cards performing well [7] - **Ancillary Business Sales**: Experienced a decline in low single digits, while pharmacy, hearing aid, and optical departments were top performers [8] External Factors Impacting Sales - **Gas Price Deflation**: Negatively impacted total reported comparable sales by approximately -0.9% [4] - **Foreign Currency Impact**: - Canada: +0.2% - Other International: +3.4% - Total Company: +0.5% [4] Future Outlook - The next reporting period will cover four weeks from July 7 to August 3, 2025, compared to the same period in 2024 [8]