BJ’s Wholesale Club (BJ) Q2 2025 earnings summary

Executive summary

• Q2 2024 delivered higher-than-expected comps and profits, with net sales up 4.8% to $5.1 billion, driven by strong membership, traffic, and unit growth, especially in grocery and perishables, and new club openings.

• Membership fee income rose 9.1% year-over-year to $113.1 million, reflecting the largest member count growth since the pandemic and robust retention.

• Digitally enabled comparable sales grew 22% year-over-year, with digital business now representing 12% of merchandise sales and 90% of digital transactions fulfilled in-club.

• Strategic priorities include expanding the club footprint, improving member loyalty, and maximizing shareholder value through disciplined capital allocation.

• Opened new membership centers and clubs, with plans to open 11–12 new clubs in the next six months and maintain a pace of about 10 new units per year.

Financial highlights

• Net sales reached $5.1 billion, up 4.8% year-over-year; total revenues were $5.2 billion.

• Comparable club sales grew 3.1% year-over-year; merchandise comp sales (excluding gas) rose 2.4%.

• Adjusted EBITDA increased 4.9% to $281.3 million; adjusted EBITDA margin held steady at 5.5%.

• Adjusted EPS was $1.09, up 10.1% year-over-year; net income increased 10.4% to $145.0 million.

• Merchandise gross margin rate (ex-gas) increased by 10 basis points year-over-year.

Outlook and guidance

• Fiscal 2024 comparable club sales (ex-gasoline) expected to grow 1–2%, with Q4 outperforming Q3.

• Fiscal 2024 adjusted EPS guidance maintained at $3.75–$4.00, with results likely trending toward the lower end.

• Full-year merchandise gross margin rate expected to be about flat year-over-year.

• SG&A deleverage anticipated in the back half due to growth investments and pre-opening expenses for new clubs.

• Long-term targets call for low- to mid-single-digit comp sales growth and high-single- to low-double-digit EPS growth, excluding gasoline sales.