Warehouse club operator BJ's Q2 sales miss estimates

Overview

• BJ's Q2 sales miss analyst expectations, adjusted EPS beats, per LSEG data

• Membership fee income rose 9% yr/yr, reaching $123.3 mln

• Company raises FY 2025 EPS guidance, reaches 8 mln members

Outlook

• BJ's expects FY 2025 adjusted EPS of $4.20 to $4.35

• Company anticipates FY 2025 comparable sales growth of 2.0% to 3.5%

• BJ's plans FY 2025 capital expenditures of about $800 mln

Result Drivers

• FUEL PRICE IMPACT - Comparable club sales decreased by 0.3% due to declining retail fuel prices

• MEMBERSHIP GROWTH - Membership fee income increased by 9% year-over-year, driven by higher membership acquisition and retention

• DIGITAL SALES - Digitally enabled comparable sales grew by 34%, reflecting strong online engagement

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the discount stores peer group is "buy"

• Wall Street's median 12-month price target for BJ's Wholesale Club Holdings Inc is $128.50, about 17.4% above its August 21 closing price of $106.16

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nBw5NGDt0a