BJ's Wholesale Club beats Q4 earnings estimates, shares edge higher

Investing.com -- BJ's Wholesale Club Holdings, Inc. reported better-than-expected fourth-quarter earnings on Thursday, with adjusted earnings per share (EPS) beating analyst estimates. The company's shares rose 1.9% in early trading following the announcement.

The membership-based warehouse retailer posted adjusted EPS of $0.93 for the fourth quarter, surpassing the analyst consensus of $0.86. Revenue for the quarter came in at $5.28 billion, in line with expectations.

BJ's reported comparable club sales growth of 4.0% YoY for the quarter, with sales excluding gasoline increasing by 4.6%. The company highlighted strong membership results, with membership fee income rising 7.9% to $117.0 million.

"Our terrific fourth quarter performance contributed to a record year at BJ's, powered by all-time high membership results," said Bob Eddy, Chairman and Chief Executive Officer of BJ's Wholesale Club (NYSE:BJ). "Our improved assortment, investments in value and significant growth in digital sales drove our 12th consecutive quarter of traffic growth."

The company's digitally enabled comparable sales grew by 26.0% in the quarter, reflecting two-year stacked comp growth of 53.0%.

For fiscal year 2025, BJ's provided guidance for adjusted EPS in the range of $4.10 to $4.30, compared to the analyst consensus of $4.30. The company also expects comparable club sales, excluding gasoline, to increase by 2.0% to 3.5% YoY.

BJ's plans to invest approximately $800 million in capital expenditures for fiscal 2025, focusing on expanding its club network and constructing a new ambient distribution center.