BJ's Wholesale Club Holdings, Inc. reported first-quarter results that exceeded analyst forecasts, as the warehouse chain recorded stronger-than-expected adjusted earnings and top-line growth supported by membership gains and fuel transactions.
Quarterly results in brief
The company posted adjusted earnings per share of $1.10, beating the analyst consensus of $1.03 by $0.07. Revenue for the quarter reached $5.66 billion, up 9.9% year-over-year from $5.15 billion and above the $5.41 billion analyst estimate. Comparable club sales increased 6.3% year-over-year, while comparable club sales excluding gasoline rose 1.5% year-over-year.
Shares rose 2.6% premarket following the results announcement.
Membership, fuel and digital trends
Membership fee income climbed 9.9% year-over-year to $132.4 million, with management attributing the gain to improvements in membership acquisition, retention and penetration of higher-tier memberships. Fuel sales were a notable contributor to overall comparable sales.
Digitally enabled comparable sales grew 28% in the quarter, and the company reported two-year stacked comparable growth in digitally enabled sales of 63%. During the period BJ's opened one new club and six new gas stations.
"We delivered a strong first quarter as our value proposition continued to resonate with members across our clubs and at our gas stations," said Bob Eddy, Chairman and Chief Executive Officer. "Momentum in membership, fuel and digital sales reflects the disciplined execution of our teams and our focus on delivering value and convenience for the families who depend on us."
Profitability and capital allocation
Net income declined 4.7% to $142.7 million from $149.8 million in the prior-year period. At the same time, adjusted EBITDA increased 4.3% to $298.1 million. During the quarter the company repurchased 2.1 million shares for $206.6 million and reported approximately $545.0 million remaining under its share repurchase program.
Outlook
For fiscal 2026, the company maintained its guidance for adjusted EPS of $4.40 to $4.60. The midpoint of that range, $4.50, is slightly below the analyst consensus of $4.52. BJ's expects comparable club sales excluding gasoline to increase 2.0% to 3.0% year-over-year in the fiscal year.
What this means for markets and sectors
- Retail and consumer staples: BJ's beat on both EPS and revenue, reflecting resilience in membership-driven warehouse retailing and consumer spending patterns across memberships and in-store purchases.
- Energy and fuel: Fuel sales contributed materially to comparable sales growth, underscoring the role of gas stations attached to club operations in revenue mix.
- Equity markets: The upside relative to estimates and the company's repurchase activity prompted a modest premarket uptick in the stock.
Conclusion
BJ's delivered a quarter in which membership strength, fuel sales and digital channels were key drivers of revenue and comparable-sales growth. While net income dipped slightly year-over-year, adjusted EBITDA rose and the company continued to return capital through buybacks. Management held its fiscal guidance steady, with the midpoint for adjusted EPS sitting just under analysts' consensus.