Core Insights - BJ's Wholesale Club reported revenue of $5.35 billion for the quarter ended October 2025, marking a year-over-year increase of 4.9% [1] - The company's EPS for the same period was $1.16, slightly down from $1.18 a year ago, but exceeded the consensus estimate of $1.10 by 5.45% [1][3] - The reported revenue matched the Zacks Consensus Estimate, resulting in a surprise of -0.08% [1] Financial Performance Metrics - Comparable club sales, excluding gasoline, increased by 1.8%, which was below the six-analyst average estimate of 2.5% [4] - Total warehouse clubs stood at 257, slightly below the average estimate of 258 from five analysts [4] - Overall comparable club sales were up by 1.1%, compared to the four-analyst average estimate of 2.1% [4] - Gas station revenues were reported at 194, exceeding the two-analyst average estimate of 192 [4] - Net sales were reported at $5.22 billion, aligning with the average estimate from five analysts [4] - Membership fee income reached $126.3 million, slightly below the five-analyst average estimate of $128.12 million, but represented a year-over-year increase of 9.8% [4] Stock Performance - BJ's shares have returned -3.1% over the past month, compared to a -2.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - BJ's Wholesale Club is positioned to capitalize on the growing wholesale retail market, which is expected to expand by 50% by 2033, despite facing competition from larger players like Costco and Walmart's Sam's Club [2][3]. Group 1: Company Overview - BJ's Wholesale Club has over 7.5 million paying members and 255 club locations as of Q1 2025, making it the smallest among the 'Big Three' wholesale clubs in the U.S. [5][3] - The company plans to open 25 to 30 new stores over the next two years, which would exceed the total openings of the previous three years combined [6]. Group 2: Financial Performance - In Q1 2025, BJ's reported net sales of $5 billion, a 4.7% year-over-year increase, and EPS of $1.14, surpassing expectations of $0.91 [7]. - BJ's gross margin expanded by 30 basis points year-over-year, and EPS grew over 34% year-over-year [7]. - The current P/E ratio for BJ's is 25.39, significantly lower than Costco's 55.75, indicating a more attractive valuation [4][16]. Group 3: Market Position and Competition - Costco has over 79 million paying members and operates 896 stores, significantly outpacing BJ's in scale and revenue [3][8]. - BJ's comp sales grew less than 3% in Q1 2025, while Costco's adjusted comp sales grew 8% year-over-year, highlighting the competitive pressure BJ's faces [9]. - Despite this, BJ's shares have increased by 27% over the last 12 months, outperforming Costco's 14% gain [13]. Group 4: Future Outlook - Analysts have a 12-month price target for BJ's at $116.12, suggesting a 7.27% upside from the current price of $108.25 [15]. - BJ's is expected to achieve a compound annual growth rate (CAGR) of 4.6% through 2033, indicating potential for healthy competition in the wholesale sector [15].