BJ’s Wholesale Club (BJ) Q3 2025 earnings summary

Executive summary

• Achieved 7.5 million members in Q3 FY24, with strong traffic, unit growth, and membership momentum; announced first membership fee increase in seven years, effective January 2025.

• Opened three new clubs and four new gas stations in Q3, operating 247 clubs and 182 gas stations as of November 2024.

• Raised fiscal 2024 guidance and approved a new $1 billion share repurchase program, expiring January 2029.

• Digital-enabled comparable sales grew 30% year-over-year, with over 90% of digital sales fulfilled in-club.

• Focus on value, digital convenience, and member experience continues to drive growth in traffic, units sold, and market share.

Financial highlights

• Q3 FY24 net sales rose 3.4% year-over-year to $5.0 billion; comparable club sales (ex-gasoline) up 3.8%.

• Membership fee income grew 8.4% to $115 million in Q3.

• Adjusted EBITDA was $308.3 million, up 13.5% year-over-year; adjusted EPS was $1.18, up 18%.

• Net income for Q3 was $155.7 million, up 19% year-over-year; EPS up 20.6% to $1.17.

• Merchandise gross margin rate (ex-gasoline, ex-membership) increased by 20 basis points year-over-year.

Outlook and guidance

• Raised full-year fiscal 2024 guidance; Q4 comparable club sales (ex-gasoline) expected to grow 2.5%-3%.

• Q4 adjusted EPS guidance: $0.78-$0.88; full-year adjusted EPS: $3.90-$4.00.

• Membership fee increases effective January 1, 2025: Club Card to $60/year, Club+ to $120/year, with added benefits for Plus members.

• Merchandise gross margin for fiscal 2024 expected to be flat year-over-year.

• Expects to operate more than 250 clubs by fiscal year end 2024.