BJ’s posts record net income, adjusted EBITDA

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Warehouse clubs see 1Q gains in traffic, membership income

BJ’s posts record net income, adjusted EBITDA

MARLBOROUGH, Mass. – BJ’s Wholesale Club Holdings Inc. today posted first-quarter earnings that the warehouse club operator said reflect strong traffic growth, market-share gains and an improved merchandise margin.

“We reported a record first quarter in net income and adjusted EBITDA, demonstrating the power of our business model and the warehouse club channel,” Bob Eddy, BJ’s president and chief executive, said in a press release. “We drove topline growth bolstered by robust traffic and share gains. We also made significant improvements on our merchandise margins largely due to waning supply chain pressures and moderating inflation.”

Highlights for the 13 weeks to April 29 include:

• Comparable club sales, excluding gasoline, increased 5.7% from a year earlier.

• Digitally enabled comparable sales increased 19%.

• Membership fee income increased 6.1% to $102.5 million.

• Merchandise gross margin rate increased 100 basis points.

• Income from continuing operations increased by 3.1% to $116 million.

• Adjusted EBITDA increased by 16.4% year-over-year to $257 million.

BJ’s said that it opened two new clubs and three new gas stations in fiscal 2023’s first quarter. At quarter’s end the company had 237 warehouse clubs and 167 BJ’s Gas locations in 18 states.

BJ’s also launched a co-branded credit card with Capital One. Card users can get up to 5% rewards in-club and up to 2% rewards out of club, as well discounts on fuel at BJ’s Gas locations.

The company said it repurchased 204,040 shares of common stock for $15.3 million during the first quarter.

“Our fiscal 2023 outlook on our business remains unchanged given the sustained strength in our grocery business and our gains in market share,” Laura Felice, executive vice president and chief financial officer at BJ’s, said in the earnings release. “We are confident that the strength of our core business and our intense focus on delivering value will continue to drive long-term growth.”



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