BJ’s Wholesale Club (NYSE:BJ) Q3 2026 Earnings Call November 21, 2025 08:30 AM ET Company ParticipantsLaura Felice - CFOAng Singh - VP FP&ASteven Zaccone - Director of Equity ResearchNone - Unknown Speaker 2Bill Werner - Executive VPNone - Unknown Speaker 1Bob Eddy - Chairman and CEOConference Call ParticipantsRobbie Owens - AnalystMike Baker - Managing Director and Senior Research AnalystKate McShane - AnalystRupesh Parikh - AnalystPeter Benedict - AnalystPedro Gale - AnalystChuck Grom - AnalystOperatorHel ...

MARLBOROUGH, Mass.--(BUSINESS WIRE)--BJ's Wholesale Club (NYSE: BJ) today announced new locations in Mesquite, Texas, and Foley, Alabama. The Mesquite club will mark the company's fifth location in Texas, and the Foley club will be the second in Alabama. The company also announced that it is relocating its Rotterdam, New York, club to a new location at I-88 and Route 7. "Our momentum remains strong as we continue to bring unbeatable value and convenience to new communities,†said Bill Werner, E. ...

Financial Data and Key Metrics Changes - Net sales for Q3 were approximately $5.2 billion, growing 4.8% year over year [15] - Total comparable club sales increased 1.1% year over year, with merchandise comp sales growing by 1.8% [15][19] - Adjusted earnings per share were $1.16, a decrease of approximately 2% year over year due to a legal settlement [20] - Adjusted EBITDA was down about 2% year over year to $301.4 million, but grew approximately 5% when adjusting for the settlement [19][20] Business Line Data and Key Metrics Changes - Perishables, grocery, and sundries division grew comp sales by 1.8%, with a two-year stack of 6% [5][16] - General merchandise and services division also increased by 1.8% in Q3, with a two-year stack of about 2% [16] - Digital sales grew by 30% year over year and 61% on a two-year stack, now approaching 17% of total sales [10][17] Market Data and Key Metrics Changes - Membership fee income grew by nearly 10% to approximately $126.3 million, driven by strong member counts and a recent fee increase [8][17] - Comp gallons in the gas business grew 2% year over year, significantly outpacing the industry [19] Company Strategy and Development Direction - The company is focused on enhancing member value through improved merchandising, digital convenience, and expansion of physical footprint [25] - A new club opened in Warner Robins, Georgia, and another in Smyrna, Tennessee, both performing above expectations [10][11] - The company plans to open 14 new clubs this year, the most in many years, and aims for 25-30 new clubs in the next two years [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver value despite a challenging macroeconomic environment [13][24] - The company is narrowing its full-year merchandise comp sales guidance to a range of 2%-3% and increasing expected adjusted earnings per share to $4.30-$4.40 [23][24] - Management highlighted the importance of maintaining a focus on member value and long-term growth strategies [25] Other Important Information - The company has launched new own-brand products aimed at providing high quality at lower prices, enhancing member loyalty [9] - A 10% discount for team members was introduced to support them during the holiday season [61] - The company is leveraging AI for improved shopping experiences and operational efficiencies [72][74] Q&A Session Summary Question: Exposure to SNAP program and member behavior across income demographics - Management noted that low-income consumers showed resilience in purchasing habits despite inflation pressures, with stable performance observed [28][30] Question: Long-term sales growth expectations - Management expressed confidence in achieving long-term growth through improved membership, merchandising, and convenience [35][36] Question: Competitive response in new markets - Management indicated strong performance in new clubs and confidence in competing effectively in markets like Dallas [39][40] Question: Inventory positioning for Q4 - Management acknowledged a conservative inventory position that may limit sales upside but supports overall value for members [44][45] Question: Fourth quarter same-store sales assumptions - Management is cautiously optimistic about Q4 performance, with preparations in place for the holiday season [53][54] Question: General merchandise inventory planning for next year - Management indicated that inventory decisions are made based on ongoing clarity regarding tariffs and consumer response [56][57] Question: Sustainability of SG&A per square foot levels - Management emphasized the importance of maintaining efficiency in operations while planning for future investments [83][84]

Core Insights - BJ's Wholesale Club reported an increase in revenue for its fiscal third quarter, indicating strong sales performance despite rising expenses impacting profit margins [1] Financial Performance - Revenue increased in the fiscal third quarter, showcasing the company's ability to drive sales growth [1] - Profit experienced a decline due to increased expenses, highlighting potential challenges in cost management [1]

Core Insights - BJ's Wholesale's stock experienced gains following a profit that exceeded expectations, alongside an upward revision of the full-year outlook, which aims to counterbalance disappointing growth in a key sales metric [1] Group 1 - The company reported a profit that surpassed market expectations, contributing to positive stock performance [1] - The full-year outlook was raised again, indicating confidence in future performance despite current challenges [1] - There was disappointing growth in a key sales metric, which the company is addressing through its revised outlook [1]

Core Viewpoint - BJ's Wholesale Club Holdings, Inc. has raised its adjusted earnings guidance for the full-year 2025 while reducing its outlook for comparable club sales growth [1] Group 1: Financial Guidance - For fiscal 2025, the company now projects adjusted earnings in the range of $4.30 to $4.40 per share [1] - The comparable club sales growth is now expected to be between 2.0 to 3.0 percent, excluding the impact of gasoline sales [1] - Previously, the company had expected adjusted earnings in the range of $4.20 to $4.35 per share and comparable club sales growth of 2.0 to 3.5 percent [2] Group 2: Analyst Expectations - On average, 21 analysts expect the company to report earnings of $4.33 per share for the quarter [3]

Core Insights - BJ's Wholesale Club Holdings, Inc. reported its financial results for the thirteen weeks and thirty-nine weeks ended November 1, 2025, indicating strong performance despite a volatile environment [1] Financial Performance - The company continues to focus on serving families who depend on its services, reflecting a commitment to customer care [1] - The financial results demonstrate resilience and adaptability in challenging market conditions [1]

Core Insights - Costco's stock has experienced a decline despite strong business performance, with shares trading below $900 and showing a negative return for 2025 [1][2] Business Performance - Costco remains a robust retailer, with a successful membership model and private-label brands driving consistent traffic and high renewal rates [2] - In fiscal Q4, net sales increased by 8% year-over-year to $84.4 billion, while full-year net sales rose by 8.1% to $269.9 billion, primarily due to strong comparable sales growth [3] - Comparable sales grew by 5.7%, with e-commerce sales increasing by 13.6% in the quarter and 15.6% for the year [3] - Earnings per share in Q4 rose by 11% year-over-year, supported by the opening of 10 new warehouses, including several internationally [4] Membership and Revenue - Membership fee income grew by 14% year-over-year to approximately $1.72 billion, with 81 million paid household memberships, a 6.3% increase from the previous year [5] - Executive members, who increased by 9.3% year-over-year, accounted for nearly three-quarters of worldwide sales [5] - Renewal rates in the U.S. and Canada dipped to 92.3%, with worldwide renewal at 89.8%, attributed to more online signups and a past promotional campaign [6] Valuation Concerns - Costco's current price-to-earnings ratio stands at 49, significantly higher than the S&P 500's ratio of about 26, indicating limited margin for error if growth slows [7][9] - While membership fee income is growing, the recent increase in membership fees may limit future growth in this area, as such increases are typically spaced out by more than five years [10] Financial Position - Costco ended fiscal 2025 with over $15 billion in cash and short-term investments against $5.7 billion in long-term debt, resulting in a net cash position that supports dividends and ongoing expansion [11] Investment Outlook - Investors may be overpaying for Costco shares given the high valuation, and it may be prudent for new investors to wait for a better entry point [12]

Earnings Report - BJ's Wholesale Club Holdings, Inc. is set to release its third-quarter earnings results on November 21, with analysts expecting earnings of $1.09 per share, a decrease from $1.18 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $5.34 billion, compared to $5.1 billion in the previous year [1] Previous Performance - In the second quarter, BJ's reported adjusted earnings per share of $1.14, surpassing the analyst consensus estimate of $1.09 [2] - Shares of BJ's Wholesale closed at $90.59, reflecting a decline of 0.8% [2] Analyst Ratings - Evercore ISI Group analyst Greg Melich maintained an In-Line rating and reduced the price target from $100 to $85 [4] - Wells Fargo analyst Edward Kelly kept an Overweight rating but cut the price target from $120 to $105 [4] - JP Morgan analyst Christopher Horvers maintained a Neutral rating and lowered the price target from $110 to $90 [4] - BTIG analyst Robert Drbul initiated coverage with a Buy rating and a price target of $120 [4] - Citigroup analyst Paul Lejuez maintained a Buy rating and reduced the price target from $120 to $115 [4]

Group 1: Earnings Reports and Expectations - BJ's Wholesale Club Holdings Inc. is expected to report quarterly earnings of $1.09 per share on revenue of $5.35 billion [2] - Veeva Systems Inc. posted strong third-quarter results and raised its fiscal year earnings and revenue estimates above analyst expectations [2] - IES Holdings Inc. is anticipated to report quarterly earnings of $3.11 per share on revenue of $843 million [2] - Intuit Inc. reported better-than-expected first-quarter results and expects second-quarter revenue growth of approximately 14% to 15% [2] - Gap Inc. reported third-quarter earnings of 62 cents per share, exceeding the analyst estimate of 59 cents, with quarterly revenue of $3.94 billion [2] Group 2: Stock Performance - BJ's Wholesale shares fell 0.6% to $90.06 in after-hours trading [2] - Veeva shares dipped 6.7% to $252.40 in after-hours trading [2] - IES shares fell 0.3% to $357.00 in after-hours trading [2] - Intuit shares gained 3.2% to $658.00 in after-hours trading [2] - Gap shares gained 5.5% to $24.32 in after-hours trading [2]