BJs Wholesale Club Holdings Inc Reports Second Quarter Fiscal 2024 Earnings

Intellectia.AI2024-08-22

Illustration by Intellectia.AI

BJ's Wholesale Club Holdings, Inc. Reports Second Quarter Fiscal 2024 Earnings

BJ's Wholesale Club Holdings, Inc. (NYSE: BJ) today announced its financial results for the second quarter of the fiscal year 2024, which ended on August 3, 2024.

Key Financial Metrics Table:

Metric	Q2 FY2024	Q2 FY2023	YoY Change	Wall Street Consensus Estimates (Current Quarter)
Total Revenue	$5.13 Billion	$4.93 Billion	+4.1%	$5.15 Billion
Earnings Per Share (EPS)	$1.08	$1.02	+5.9%	$1.00

Interpretation : BJ's reported a total revenue of $5.13 billion, which was slightly under the Wall Street consensus estimate of $5.15 billion. The earnings per share of $1.08 surpassed the estimated $1.00, signifying solid profitability growth.

Segment Performance Table:

Segment	Revenue (Q2 FY2024)	Year-over-Year Change
Comparable Club Sales	+3.1%	Not Provided
Comparable Club Sales (excluding Gas)	+2.4%	Not Provided
Digitally Enabled Sales Growth	+22.0%	Not Provided
Membership Fee Income	$113.1 Million	+9.1%

Interpretation : BJ's Wholesale Club continued its growth trajectory with notable gains in comparable club sales and a significant 22% growth in digitally enabled sales. Membership fee income also saw a significant increase, indicating strong retention and membership base growth.

Comments from Company Officers:

Bob Eddy, Chairman and Chief Executive Officer, emphasized the company's robust membership growth, accelerating traffic, and unit expansion, leading to strong performance. He highlighted the company’s dedication to its strategic initiatives and expressed confidence in future growth.

Dividends or Share Repurchase Program:

The company repurchased 451,982 shares of common stock totaling $40.4 million in the second quarter and 857,092 shares totaling $70.6 million in the first six months of fiscal 2024. A total of $118.7 million remains available under the company's share repurchase program.

Forward Guidance:

Laura Felice, Executive Vice President, Chief Financial Officer, projected fiscal 2024 comparable club sales (excluding gasoline) to increase by 1% to 2% year-over-year. BJ’s expects its fiscal 2024 adjusted EPS to range between $3.75 to $4.00, with expectations leaning towards the lower end due to various strategic investments.

Stock Price Movement:

Post-earnings release, BJ's shares experienced a slight decline of 0.71%.

In summary, BJ’s Wholesale Club Holdings, Inc. reported a robust second quarter with significant gains in membership, traffic, unit growth, and digital sales. The company continues to show strong financial performance aligned with its long-term strategic goals.