Latest news with #BJ'sWholesaleClubHoldings
Epoch Times
23-05-2025
- Business
- Epoch Times
BJ's Wholesale Club Beats Earnings Estimates on Favorable Shopping Trends
Based on strong membership and digital sales growth, BJ's Wholesale Club Holdings, Inc. reported earnings for the first quarter of fiscal year 2025 that beat market estimates. Despite the challenging consumer environment, the company maintained its guidance for the rest of the year. On May 22, the operator of membership warehouse clubs in the eastern half of the United States reported adjusted earnings of $1.14 per diluted share for the quarter ended May 3, surpassing Zacks' average analyst estimate of 91 cents. Revenues were $5.15 billion, up 4.8 percent from a year earlier, due to an 8.1 percent rise in membership fee income and a 35 percent jump in digitally enabled comparable sales growth. 'We reported a strong start to the year, demonstrating the power of our model and continued momentum in our long-term growth priorities,' said Bob Eddy, chairman and CEO of BJ's Wholesale Club. 'Delivering great value is essential in today's environment, and I am proud of our team members who remain committed to caring for the families who depend on us.' BJ has been benefiting from several shopping trends, including the growing popularity of wholesale clubs and superstores. According to Related Stories 5/21/2025 5/21/2025 Another trend is the merging of online and offline sales, giving rise to a new channel known as 'digitally enabled sales.' Customers can place orders online and either pick them up at local stores or have them delivered to their homes the same day. This approach has helped traditional brick-and-mortar retailers compete more effectively with Amazon. Adding to these favorable retail trends is the application of membership fees, which allows wholesale club operators to target more affluent customers through market segmentation. In addition to boosting sales, these factors have helped wholesale clubs better allocate capital, creating superior returns for investors. According to data published by BJ Wholesale Club's return on invested capital (ROIC) was 10.44 percent, nearly twice the rate the company paid to raise capital in the markets. BJ's shares fell by 1.3 percent on May 22. The stock has been up 29.79 percent year to date, and 212 percent over the past five years, beating the S&P 500 Index, which is flat for the year and up by 98 percent over the same five-year period. Laura Felice, executive vice president and chief financial officer of BJ's Wholesale Club, sees the company continuing its growth path and maintaining its guidance for the rest of the year. 'As we look to fiscal 2025, we are confident in our team, our positioning in the marketplace, and the growth drivers that are within our control. We will remain focused on executing against our long-term priorities to drive continued traffic and market share gains,' she said. 'Based on what we know today, we are leaving our fiscal 2025 guidance unchanged and will continue to evaluate as the year progresses.' On March 6, the company's guidance for fiscal 2025 called for comparable club annual sales growth, excluding the impact of gasoline sales, in the range of 2.0 percent to 3.5 percent, and adjusted earnings per share in the range of $4.10 to $4.30. Meanwhile, the company remains on track to open 25 to 30 new clubs over the next two years as it updates and upgrades its business model. 'In the past several years, we've updated our clubs with the latest sign packages and invested to support our key growth initiatives, including digital and Fresh two-point zero,' Eddy said during the earnings conference call. 'We're also looking to identify relocation opportunities to better position our fleet for tomorrow.' Georgios Koimisis, a professor of economics and finance at Manhattan University, is skeptical about BJ's ability to continue its winning streak on Main Street and Wall Street. 'BJ's stock has outperformed the broader market this year,' he told The Epoch Times via email. 'However, while BJ's seems to be managing costs and profits well, it has not consistently grown sales beyond expectations.' Koimisis sees this situation worsening in the current environment of rising long-term interest rates and plunging consumer confidence. 'With growing economic uncertainty, any slowdown in consumer spending could shift focus from profits to sales performance, making sustained revenue growth a more important factor of investor confidence going forward,' he said.
Yahoo
22-05-2025
- Business
- Yahoo
BJ's Wholesale Club (BJ) Rose on Solid Results
Renaissance Investment Management, an investment management company, released its Q1 2025 'Large Cap Growth Strategy' investor letter. A copy of the letter can be downloaded here. The S&P 500 experienced a 4.3% loss in Q1 due to uncertainty in technology stock valuations and US economic policies. However, seven sectors showed positive returns, with Energy, Health Care, and Utilities sectors showing the strongest performance. The S&P 500 has not experienced a significant correction since 2023, which can be expected to occur every couple of years. However, there are still good investment opportunities in high-quality, reasonably priced stocks that have not matched concentrated market indices. The S&P 500 (-4.3%) and Russell 1000 Growth Index (-10%) declined in Q1, with large-cap stocks outperforming smaller-cap stocks and Value outperforming Growth. For the quarter, the strategy exceeded the Russell 1000 Growth benchmark and lagged the S&P 500. For more information on the fund's best picks in 2025, please check its top five holdings. In its first-quarter 2025 investor letter, Renaissance Large Cap Growth Strategy highlighted stocks such as BBJ's Wholesale Club Holdings, Inc. (NYSE:BJ). BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) operates warehouse clubs that provide groceries, general merchandise, gasoline and other ancillary services, coupon books, and promotions. The one-month return of BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) was 4.48%, and its shares gained 41.23% of their value over the last 52 weeks. On May 21, 2025, BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) stock closed at $117.50 per share with a market capitalization of $15.516 billion. Renaissance Large Cap Growth Strategy stated the following regarding BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) in its Q1 2025 investor letter: "BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) was our top contributor in the first quarter. The company reported solid operating earnings, which showed an acceleration in organic growth and margin expansion driven by an improvement in general merchandising. We were particularly encouraged by the company's progress in both its national expansion strategy and membership growth." A customer happily filling up their tank at the Wholesale Club's gasoline station. BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) at the end of the fourth quarter compared to 28 in the third quarter. While we acknowledge the potential of BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) and shared TimesSquare Capital U.S. Focus Growth Strategy's views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.
Business Wire
22-05-2025
- Business
- Business Wire
BJ's Wholesale Club Holdings, Inc. Announces First Quarter Fiscal 2025 Results
MARLBOROUGH, Mass.--(BUSINESS WIRE)--BJ's Wholesale Club Holdings, Inc. (NYSE: BJ) (the "Company") today announced its financial results for the thirteen weeks ended May 3, 2025. 'We reported a strong start to the year, demonstrating the power of our model and continued momentum in our long-term growth priorities,' said Bob Eddy, Chairman and Chief Executive Officer, BJ's Wholesale Club. 'Delivering great value is essential in today's environment, and I am proud of our team members who remain committed to taking care of the families who depend on us.' Additional Highlights: Total comparable club sales increased by 1.6% in the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024. Excluding the impact of gasoline sales, comparable club sales increased by 3.9% in the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024. Membership fee income increased to $120.4 million in the first quarter of fiscal 2025 from $111.4 million in the first quarter of fiscal 2024. The increase was primarily driven by strength in membership acquisition, retention and higher tier membership penetration across both new and existing clubs, as well as the increase in annual membership fees which became effective in January 2025. Gross profit increased to $969.5 million in the first quarter of fiscal 2025 from $883.4 million in the first quarter of fiscal 2024. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, increased by 30 basis points over the same quarter of fiscal 2024. The Company continues to manage the business to drive profitable growth across the broader merchandise assortment. Selling, general and administrative expenses ('SG&A') increased to $760.9 million in the first quarter of fiscal 2025 compared to $721.8 million in the first quarter of fiscal 2024. The increase was primarily driven by increased labor and occupancy costs as a result of new club and gas station openings. Additionally, an increase in the number of owned clubs has resulted in increased depreciation expense year-over-year. Income before income taxes increased to $192.5 million in the first quarter of fiscal 2025 compared to $146.8 million in the first quarter of fiscal 2024. Income tax expense increased to $42.8 million in the first quarter of fiscal 2025 compared to $35.8 million in the first quarter of fiscal 2024. The increase in income tax expense is driven by an increase in income before income taxes compared to the prior year period, partially offset by an increase in tax benefits from stock-based compensation. Net income increased to $149.8 million in the first quarter of fiscal 2025 compared to $111.0 million in the first quarter of fiscal 2024. Adjusted EBITDA increased by 20.9% to $285.8 million in the first quarter of fiscal 2025 compared to $236.4 million in the first quarter of fiscal 2024. Under its existing share repurchase program, the Company repurchased 55,000 shares of common stock, totaling $6.2 million, inclusive of associated costs, in the first quarter of fiscal 2025. Fiscal 2025 Ending January 31, 2026 Outlook 'As we look to fiscal 2025, we are confident in our team, our positioning in the marketplace and the growth drivers that are within our control. We will remain focused on executing against our long-term priorities to drive continued traffic and market share gains,' said Laura Felice, Executive Vice President, Chief Financial Officer, BJ's Wholesale Club. 'Based on what we know today, we are leaving our fiscal 2025 guidance unchanged, and will continue to evaluate as the year progresses.' On March 6, 2025, the Company provided the following guidance for fiscal 2025: Comparable club sales, excluding the impact of gasoline sales, to increase 2.0% to 3.5% year-over-year Adjusted EPS to range from $4.10 to $4.30 Capital expenditures of approximately $800 million Conference Call Details A conference call to discuss the first quarter of fiscal 2025 financial results is scheduled for today, May 22, 2025, at 8:30 A.M. Eastern Time. The live audio webcast of the call can be accessed under the 'Events & Presentations' section of the Company's investor relations website at and will remain available for one year. Participants may also dial (833) 470-1428 within the U.S. or +1 (929) 526-1599 outside the U.S. and reference conference ID 221377. About BJ's Wholesale Club Holdings, Inc. BJ's Wholesale Club Holdings, Inc. (NYSE: BJ) is a leading operator of membership warehouse clubs focused on delivering significant value to its members and serving a shared purpose: 'We take care of the families who depend on us.' The Company provides a wide assortment of fresh foods, produce, a full-service deli, fresh bakery, household essentials and gas. In addition, BJ's offers the latest technology, home decor, apparel, seasonal items and more to deliver unbeatable value to smart-saving families. Headquartered in Marlborough, Massachusetts, the Company pioneered the warehouse club model in New England in 1984 and currently operates 255 clubs and 190 BJ's Gas® locations in 21 states. For more information, please visit us at Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our future results of operations and financial position; our anticipated fiscal 2025 outlook; our membership fee increases; the timing and amounts of any share repurchases under our current authorized share repurchase program; and our strategic priorities and future progress, as well as statements that include the words 'expect,' 'intend,' 'plan,' 'confident,' 'believe,' 'project,' 'forecast,' 'estimate,' 'may,' 'should,' 'anticipate' and similar statements of a future or forward-looking nature. These forward-looking statements are based on management's current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: uncertainties in the financial markets, including, without limitation, as a result of disruptions and instability in the banking and financial services industries or as a result of wars and global political conflicts, consumer and small business spending patterns and debt levels; our dependence on having a large and loyal membership; domestic and international economic conditions, including volatility in inflation or interest rates, supply chain disruptions, construction delays and exchange rates; our ability to procure the merchandise we sell at the best possible prices; the effects of competition and regulation; our dependence on vendors to supply us with quality merchandise at the right time and at the right price; breaches of security or privacy of member or business information; conditions affecting the acquisition, development, ownership or use of real estate; our capital spending; actions of vendors; our ability to attract and retain a qualified management team and other team members; costs associated with employees (generally including health care costs), energy and certain commodities, geopolitical conditions (including tariffs); changes in our product mix or in our revenues from gasoline sales; our failure to successfully maintain a relevant digital experience for our members; risks related to our growth strategy to open new clubs; risks related to our e-commerce business; our ability to grow our BJ's One Mastercard® program; and other important factors discussed under the caption 'Risk Factors' in our Form 10-K filed with the U.S. Securities and Exchange Commission ('SEC') on March 14, 2025, and subsequent filings with the SEC, which are accessible on the SEC's website at These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management's estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, unless required by law, we disclaim any obligation to do so, even if subsequent events cause our views to change. Thus, one should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Non-GAAP Financial Measures We refer to certain financial measures that are not recognized under United States generally accepted accounting principles ('GAAP'). Please see 'Note Regarding Non-GAAP Financial Information' and 'Reconciliation of GAAP to Non-GAAP Financial Information' below for additional information and a reconciliation of the Non-GAAP financial measures to the most comparable GAAP financial measures. BJ'S WHOLESALE CLUB HOLDINGS, INC. (Amounts in thousands, except per share amounts) (Unaudited) May 3, 2025 May 4, 2024 ASSETS Current assets: Cash and cash equivalents $ 39,484 $ 35,094 Accounts receivable, net 240,419 225,199 Merchandise inventories 1,567,032 1,533,310 Prepaid expense and other current assets 81,833 85,048 Total current assets 1,928,768 1,878,651 Operating lease right-of-use assets, net 2,065,890 2,159,955 Property and equipment, net 1,988,290 1,620,255 Goodwill 1,008,816 1,008,816 Intangibles, net 99,697 106,001 Deferred income taxes 7,615 2,693 Other assets 58,596 48,356 Total assets $ 7,157,672 $ 6,824,727 LIABILITIES Current liabilities: Short-term debt $ 150,000 $ 270,000 Current portion of operating lease liabilities 169,568 156,914 Accounts payable 1,255,867 1,264,873 Accrued expenses and other current liabilities 934,974 834,053 Total current liabilities 2,510,409 2,525,840 Long-term operating lease liabilities 1,977,180 2,069,587 Long-term debt 398,880 398,509 Deferred income taxes 55,386 74,804 Other non-current liabilities 244,232 228,567 STOCKHOLDERS' EQUITY 1,971,585 1,527,420 Total liabilities and stockholders' equity $ 7,157,672 $ 6,824,727 Expand BJ'S WHOLESALE CLUB HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands, except per share amounts) (Unaudited) Thirteen Weeks Ended May 3, 2025 Thirteen Weeks Ended May 4, 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 149,768 $ 111,019 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 69,665 63,422 Amortization of debt issuance costs and accretion of original issue discount 273 277 Stock-based compensation expense 10,654 8,590 Deferred income tax (benefit) provision (4,913 ) 1,409 Changes in operating leases and other non-cash items (24,397 ) 2,922 Increase (decrease) in cash due to changes in: Accounts receivable, net 39,735 3,491 Merchandise inventories (58,044 ) (78,488 ) Accounts payable 2,355 81,592 Accrued expenses and other current liabilities 24,783 19,316 Other operating assets and liabilities, net (1,786 ) (12,703 ) Net cash provided by operating activities 208,093 200,847 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property and equipment, net of disposals and proceeds from sale-leaseback transactions (140,497 ) (105,741 ) Other investing activities (1,794 ) — Net cash used in investing activities (142,291 ) (105,741 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from revolving lines of credit 66,000 193,000 Payments on revolving lines of credit (91,000 ) (242,000 ) Net cash received from stock option exercises 5,014 5,865 Acquisition of treasury stock (41,305 ) (57,256 ) Proceeds from financing obligations 8,721 6,044 Other financing activities (2,020 ) (1,714 ) Net cash used in financing activities (54,590 ) (96,061 ) Net increase (decrease) in cash and cash equivalents 11,212 (955 ) Cash and cash equivalents at beginning of period 28,272 36,049 Cash and cash equivalents at end of period $ 39,484 $ 35,094 Expand Note Regarding Non-GAAP Financial Information This press release includes financial measures that are not calculated in accordance with GAAP, including adjusted net income, adjusted net income per diluted share ('adjusted EPS'), adjusted EBITDA, adjusted free cash flow, net debt, net debt to last twelve months ('LTM') adjusted EBITDA, and comparable club sales. We define adjusted net income as net income as reported, adjusted for non-recurring, infrequent, or unusual changes, including restructuring charges, and other adjustments that the Company believes appropriate, net of the tax impact of such adjustments. We define adjusted EPS as adjusted net income divided by the weighted-average diluted shares outstanding. We define adjusted EBITDA as net income before interest expense, net, provision for income taxes and depreciation and amortization, adjusted for the impact of certain other items, including: stock-based compensation expense; restructuring and other adjustments. We define adjusted free cash flow as net cash provided by operating activities less additions to property and equipment, net of disposals, plus proceeds from sale-leaseback transactions. We define net debt as total debt outstanding less cash and cash equivalents. We define net debt to LTM adjusted EBITDA as net debt at the balance sheet date divided by adjusted EBITDA for the trailing twelve-month period. We present adjusted net income, adjusted EPS and adjusted EBITDA, which are not recognized financial measures under GAAP, because we believe such measures assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. We believe that adjusted net income, adjusted EPS and adjusted EBITDA are helpful in highlighting trends in our core operating performance compared to other measures, which can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital investments. We use adjusted net income, adjusted EPS and adjusted EBITDA to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies; to make budgeting decisions; and to compare our performance against that of other peer companies using similar measures. We also use adjusted EBITDA and adjusted EPS in connection with establishing annual and long-term incentive compensation. We present adjusted free cash flow, which is not a recognized financial measure under GAAP, because we use it to report to our Board of Directors and we believe it assists investors and analysts in evaluating our liquidity. Adjusted free cash flow should not be considered as an alternative to cash flows from operations as a liquidity measure. We present net debt and net debt to LTM adjusted EBITDA, which are not recognized as financial measures under GAAP, because we use them to report to our Board of Directors and we believe they assist investors and analysts in evaluating our borrowing capacity. Net debt to LTM adjusted EBITDA is a key financial measure that is used by management to assess the borrowing capacity of the Company. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating adjusted net income, adjusted EPS, adjusted EBITDA and net debt to LTM adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or like some of the adjustments in our presentation of these metrics. Our presentation of adjusted net income, adjusted EPS, adjusted EBITDA, adjusted free cash flow, net debt and net debt to LTM adjusted EBITDA should not be considered as alternatives to any other measure derived in accordance with GAAP and they should not be construed as an inference that the Company's future results will be unaffected by unusual or non-recurring items. There can be no assurance that we will not modify the presentation of adjusted net income, adjusted EPS, adjusted EBITDA or net debt to LTM adjusted EBITDA in the future, and any such modification may be material. In addition, adjusted net income, adjusted EPS, adjusted EBITDA, adjusted free cash flow, net debt and net debt to LTM adjusted EBITDA may not be comparable to similarly titled measures used by other companies in our industry or across different industries. Additionally, adjusted net income, adjusted EPS, adjusted EBITDA, adjusted free cash flow, net debt and net debt to LTM adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. In reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K, the Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, including of its projected range for adjusted EPS for Fiscal 2025 to net income per diluted share, which is the most directly comparable GAAP measure, under "Fiscal 2025 Ending January 31, 2026" above, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items or there are no meaningful adjustments to be presented in the reconciliation and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income per diluted share, if any. This includes items that have not yet occurred, are out of the Company's control, cannot be reasonably predicted and/or for which there would not be any meaningful adjustment or difference. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The information under "Fiscal 2025 Ending January 31, 2026" above, including expectations about adjusted EPS reflects management's view of current and future market conditions. To the extent actual results differ from our current expectations, the Company's results may differ materially from the expectations set forth above. Other factors, as referenced elsewhere in this press release, may also cause the Company's results to differ materially from the expectations set forth above. BJ'S WHOLESALE CLUB HOLDINGS, INC. Reconciliation to adjusted free cash flow (Amounts in thousands) (Unaudited) Thirteen Weeks Ended May 3, 2025 Thirteen Weeks Ended May 4, 2024 Net cash provided by operating activities $ 208,093 $ 200,847 Less: Additions to property and equipment, net of disposals (140,497 ) (105,741 ) Plus: Proceeds from sale-leaseback transactions — — Adjusted free cash flow $ 67,596 $ 95,106 Expand BJ'S WHOLESALE CLUB HOLDINGS, INC. Reconciliation of net debt and net debt to LTM adjusted EBITDA (Amounts in thousands) (Unaudited) May 3, 2025 Total debt $ 548,880 Less: Cash and cash equivalents (39,484 ) Net debt $ 509,396 Net income $ 573,166 Interest expense, net 48,507 Provision for income taxes 193,423 Depreciation and amortization 268,311 Stock-based compensation expense 49,862 Restructuring 6,657 Other adjustments 119 Adjusted EBITDA (a) $ 1,140,045 Net debt to LTM adjusted EBITDA (a) See descriptions of adjustments in the 'Reconciliation to Adjusted EBITDA (unaudited)' table above. Expand
Yahoo
22-05-2025
- Business
- Yahoo
BJ's Wholesale Club Holdings, Inc. Announces First Quarter Fiscal 2025 Results
Strong execution, membership and traffic drove first quarter results First Quarter Fiscal 2025 Highlights Comparable club sales increased by 1.6% year-over-year Comparable club sales, excluding gasoline sales, increased by 3.9% year-over-year, led by traffic growth Membership fee income increased by 8.1% year-over-year to $120.4 million Digitally enabled comparable sales growth was 35%, reflecting two-year stacked comp growth of 56% Earnings per diluted share of $1.13 and adjusted earnings per diluted share of $1.14 The Company opened five new clubs and four new gas stations MARLBOROUGH, Mass., May 22, 2025--(BUSINESS WIRE)--BJ's Wholesale Club Holdings, Inc. (NYSE: BJ) (the "Company") today announced its financial results for the thirteen weeks ended May 3, 2025. "We reported a strong start to the year, demonstrating the power of our model and continued momentum in our long-term growth priorities," said Bob Eddy, Chairman and Chief Executive Officer, BJ's Wholesale Club. "Delivering great value is essential in today's environment, and I am proud of our team members who remain committed to taking care of the families who depend on us." Key Measures for the Thirteen Weeks Ended May 3, 2025 (First Quarter of Fiscal 2025): BJ'S WHOLESALE CLUB HOLDINGS, INC. (Amounts in thousands, except per share amounts) Thirteen Weeks Ended May 3, 2025 Thirteen Weeks Ended May 4, 2024 % Growth Net sales $ 5,033,094 $ 4,807,129 4.7 % Membership fee income 120,389 111,390 8.1 % Total revenues 5,153,483 4,918,519 4.8 % Operating income 203,645 160,755 26.7 % Net income 149,768 111,019 34.9 % EPS (a) 1.13 0.83 36.1 % Adjusted net income (b) 150,875 113,408 33.0 % Adjusted EPS (b) 1.14 0.85 34.1 % Adjusted EBITDA (b) 285,836 236,386 20.9 % Basic weighted-average shares outstanding 131,569 132,397 Diluted weighted-average shares outstanding 132,749 134,111 (a) EPS represents net income per diluted share. (b) See "Note Regarding Non-GAAP Financial Information." Additional Highlights: Total comparable club sales increased by 1.6% in the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024. Excluding the impact of gasoline sales, comparable club sales increased by 3.9% in the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024. Membership fee income increased to $120.4 million in the first quarter of fiscal 2025 from $111.4 million in the first quarter of fiscal 2024. The increase was primarily driven by strength in membership acquisition, retention and higher tier membership penetration across both new and existing clubs, as well as the increase in annual membership fees which became effective in January 2025. Gross profit increased to $969.5 million in the first quarter of fiscal 2025 from $883.4 million in the first quarter of fiscal 2024. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, increased by 30 basis points over the same quarter of fiscal 2024. The Company continues to manage the business to drive profitable growth across the broader merchandise assortment. Selling, general and administrative expenses ("SG&A") increased to $760.9 million in the first quarter of fiscal 2025 compared to $721.8 million in the first quarter of fiscal 2024. The increase was primarily driven by increased labor and occupancy costs as a result of new club and gas station openings. Additionally, an increase in the number of owned clubs has resulted in increased depreciation expense year-over-year. Income before income taxes increased to $192.5 million in the first quarter of fiscal 2025 compared to $146.8 million in the first quarter of fiscal 2024. Income tax expense increased to $42.8 million in the first quarter of fiscal 2025 compared to $35.8 million in the first quarter of fiscal 2024. The increase in income tax expense is driven by an increase in income before income taxes compared to the prior year period, partially offset by an increase in tax benefits from stock-based compensation. Net income increased to $149.8 million in the first quarter of fiscal 2025 compared to $111.0 million in the first quarter of fiscal 2024. Adjusted EBITDA increased by 20.9% to $285.8 million in the first quarter of fiscal 2025 compared to $236.4 million in the first quarter of fiscal 2024. Under its existing share repurchase program, the Company repurchased 55,000 shares of common stock, totaling $6.2 million, inclusive of associated costs, in the first quarter of fiscal 2025. Fiscal 2025 Ending January 31, 2026 Outlook "As we look to fiscal 2025, we are confident in our team, our positioning in the marketplace and the growth drivers that are within our control. We will remain focused on executing against our long-term priorities to drive continued traffic and market share gains," said Laura Felice, Executive Vice President, Chief Financial Officer, BJ's Wholesale Club. "Based on what we know today, we are leaving our fiscal 2025 guidance unchanged, and will continue to evaluate as the year progresses." On March 6, 2025, the Company provided the following guidance for fiscal 2025: Comparable club sales, excluding the impact of gasoline sales, to increase 2.0% to 3.5% year-over-year Adjusted EPS to range from $4.10 to $4.30 Capital expenditures of approximately $800 million Conference Call Details A conference call to discuss the first quarter of fiscal 2025 financial results is scheduled for today, May 22, 2025, at 8:30 A.M. Eastern Time. The live audio webcast of the call can be accessed under the "Events & Presentations" section of the Company's investor relations website at and will remain available for one year. Participants may also dial (833) 470-1428 within the U.S. or +1 (929) 526-1599 outside the U.S. and reference conference ID 221377. About BJ's Wholesale Club Holdings, Inc. BJ's Wholesale Club Holdings, Inc. (NYSE: BJ) is a leading operator of membership warehouse clubs focused on delivering significant value to its members and serving a shared purpose: "We take care of the families who depend on us." The Company provides a wide assortment of fresh foods, produce, a full-service deli, fresh bakery, household essentials and gas. In addition, BJ's offers the latest technology, home decor, apparel, seasonal items and more to deliver unbeatable value to smart-saving families. Headquartered in Marlborough, Massachusetts, the Company pioneered the warehouse club model in New England in 1984 and currently operates 255 clubs and 190 BJ's Gas® locations in 21 states. For more information, please visit us at Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our future results of operations and financial position; our anticipated fiscal 2025 outlook; our membership fee increases; the timing and amounts of any share repurchases under our current authorized share repurchase program; and our strategic priorities and future progress, as well as statements that include the words "expect," "intend," "plan," "confident," "believe," "project," "forecast," "estimate," "may," "should," "anticipate" and similar statements of a future or forward-looking nature. These forward-looking statements are based on management's current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: uncertainties in the financial markets, including, without limitation, as a result of disruptions and instability in the banking and financial services industries or as a result of wars and global political conflicts, consumer and small business spending patterns and debt levels; our dependence on having a large and loyal membership; domestic and international economic conditions, including volatility in inflation or interest rates, supply chain disruptions, construction delays and exchange rates; our ability to procure the merchandise we sell at the best possible prices; the effects of competition and regulation; our dependence on vendors to supply us with quality merchandise at the right time and at the right price; breaches of security or privacy of member or business information; conditions affecting the acquisition, development, ownership or use of real estate; our capital spending; actions of vendors; our ability to attract and retain a qualified management team and other team members; costs associated with employees (generally including health care costs), energy and certain commodities, geopolitical conditions (including tariffs); changes in our product mix or in our revenues from gasoline sales; our failure to successfully maintain a relevant digital experience for our members; risks related to our growth strategy to open new clubs; risks related to our e-commerce business; our ability to grow our BJ's One Mastercard® program; and other important factors discussed under the caption "Risk Factors" in our Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") on March 14, 2025, and subsequent filings with the SEC, which are accessible on the SEC's website at These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management's estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, unless required by law, we disclaim any obligation to do so, even if subsequent events cause our views to change. Thus, one should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Non-GAAP Financial Measures We refer to certain financial measures that are not recognized under United States generally accepted accounting principles ("GAAP"). Please see "Note Regarding Non-GAAP Financial Information" and "Reconciliation of GAAP to Non-GAAP Financial Information" below for additional information and a reconciliation of the Non-GAAP financial measures to the most comparable GAAP financial measures. BJ'S WHOLESALE CLUB HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share amounts) (Unaudited) Thirteen Weeks Ended May 3, 2025 Thirteen Weeks Ended May 4, 2024 Net sales $ 5,033,094 $ 4,807,129 Membership fee income 120,389 111,390 Total revenues 5,153,483 4,918,519 Cost of sales 4,183,984 4,035,129 Selling, general and administrative expenses 760,880 721,771 Pre-opening expenses 4,974 864 Operating income 203,645 160,755 Interest expense, net 11,099 13,951 Income before income taxes 192,546 146,804 Provision for income taxes 42,778 35,785 Net income $ 149,768 $ 111,019 Income per share attributable to common stockholders—basic: $ 1.14 $ 0.84 Income per share attributable to common stockholders—diluted: $ 1.13 $ 0.83 Weighted-average number of shares outstanding: Basic 131,569 132,397 Diluted 132,749 134,111 BJ'S WHOLESALE CLUB HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except per share amounts) (Unaudited) May 3, 2025 May 4, 2024 ASSETS Current assets: Cash and cash equivalents $ 39,484 $ 35,094 Accounts receivable, net 240,419 225,199 Merchandise inventories 1,567,032 1,533,310 Prepaid expense and other current assets 81,833 85,048 Total current assets 1,928,768 1,878,651 Operating lease right-of-use assets, net 2,065,890 2,159,955 Property and equipment, net 1,988,290 1,620,255 Goodwill 1,008,816 1,008,816 Intangibles, net 99,697 106,001 Deferred income taxes 7,615 2,693 Other assets 58,596 48,356 Total assets $ 7,157,672 $ 6,824,727 LIABILITIES Current liabilities: Short-term debt $ 150,000 $ 270,000 Current portion of operating lease liabilities 169,568 156,914 Accounts payable 1,255,867 1,264,873 Accrued expenses and other current liabilities 934,974 834,053 Total current liabilities 2,510,409 2,525,840 Long-term operating lease liabilities 1,977,180 2,069,587 Long-term debt 398,880 398,509 Deferred income taxes 55,386 74,804 Other non-current liabilities 244,232 228,567 STOCKHOLDERS' EQUITY 1,971,585 1,527,420 Total liabilities and stockholders' equity $ 7,157,672 $ 6,824,727 BJ'S WHOLESALE CLUB HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands, except per share amounts) (Unaudited) Thirteen Weeks Ended May 3, 2025 Thirteen Weeks Ended May 4, 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 149,768 $ 111,019 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 69,665 63,422 Amortization of debt issuance costs and accretion of original issue discount 273 277 Stock-based compensation expense 10,654 8,590 Deferred income tax (benefit) provision (4,913 ) 1,409 Changes in operating leases and other non-cash items (24,397 ) 2,922 Increase (decrease) in cash due to changes in: Accounts receivable, net 39,735 3,491 Merchandise inventories (58,044 ) (78,488 ) Accounts payable 2,355 81,592 Accrued expenses and other current liabilities 24,783 19,316 Other operating assets and liabilities, net (1,786 ) (12,703 ) Net cash provided by operating activities 208,093 200,847 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property and equipment, net of disposals and proceeds from sale-leaseback transactions (140,497 ) (105,741 ) Other investing activities (1,794 ) — Net cash used in investing activities (142,291 ) (105,741 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from revolving lines of credit 66,000 193,000 Payments on revolving lines of credit (91,000 ) (242,000 ) Net cash received from stock option exercises 5,014 5,865 Acquisition of treasury stock (41,305 ) (57,256 ) Proceeds from financing obligations 8,721 6,044 Other financing activities (2,020 ) (1,714 ) Net cash used in financing activities (54,590 ) (96,061 ) Net increase (decrease) in cash and cash equivalents 11,212 (955 ) Cash and cash equivalents at beginning of period 28,272 36,049 Cash and cash equivalents at end of period $ 39,484 $ 35,094 Note Regarding Non-GAAP Financial Information This press release includes financial measures that are not calculated in accordance with GAAP, including adjusted net income, adjusted net income per diluted share ("adjusted EPS"), adjusted EBITDA, adjusted free cash flow, net debt, net debt to last twelve months ("LTM") adjusted EBITDA, and comparable club sales. We define adjusted net income as net income as reported, adjusted for non-recurring, infrequent, or unusual changes, including restructuring charges, and other adjustments that the Company believes appropriate, net of the tax impact of such adjustments. We define adjusted EPS as adjusted net income divided by the weighted-average diluted shares outstanding. We define adjusted EBITDA as net income before interest expense, net, provision for income taxes and depreciation and amortization, adjusted for the impact of certain other items, including: stock-based compensation expense; restructuring and other adjustments. We define adjusted free cash flow as net cash provided by operating activities less additions to property and equipment, net of disposals, plus proceeds from sale-leaseback transactions. We define net debt as total debt outstanding less cash and cash equivalents. We define net debt to LTM adjusted EBITDA as net debt at the balance sheet date divided by adjusted EBITDA for the trailing twelve-month period. We present adjusted net income, adjusted EPS and adjusted EBITDA, which are not recognized financial measures under GAAP, because we believe such measures assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. We believe that adjusted net income, adjusted EPS and adjusted EBITDA are helpful in highlighting trends in our core operating performance compared to other measures, which can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital investments. We use adjusted net income, adjusted EPS and adjusted EBITDA to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies; to make budgeting decisions; and to compare our performance against that of other peer companies using similar measures. We also use adjusted EBITDA and adjusted EPS in connection with establishing annual and long-term incentive compensation. We present adjusted free cash flow, which is not a recognized financial measure under GAAP, because we use it to report to our Board of Directors and we believe it assists investors and analysts in evaluating our liquidity. Adjusted free cash flow should not be considered as an alternative to cash flows from operations as a liquidity measure. We present net debt and net debt to LTM adjusted EBITDA, which are not recognized as financial measures under GAAP, because we use them to report to our Board of Directors and we believe they assist investors and analysts in evaluating our borrowing capacity. Net debt to LTM adjusted EBITDA is a key financial measure that is used by management to assess the borrowing capacity of the Company. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating adjusted net income, adjusted EPS, adjusted EBITDA and net debt to LTM adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or like some of the adjustments in our presentation of these metrics. Our presentation of adjusted net income, adjusted EPS, adjusted EBITDA, adjusted free cash flow, net debt and net debt to LTM adjusted EBITDA should not be considered as alternatives to any other measure derived in accordance with GAAP and they should not be construed as an inference that the Company's future results will be unaffected by unusual or non-recurring items. There can be no assurance that we will not modify the presentation of adjusted net income, adjusted EPS, adjusted EBITDA or net debt to LTM adjusted EBITDA in the future, and any such modification may be material. In addition, adjusted net income, adjusted EPS, adjusted EBITDA, adjusted free cash flow, net debt and net debt to LTM adjusted EBITDA may not be comparable to similarly titled measures used by other companies in our industry or across different industries. Additionally, adjusted net income, adjusted EPS, adjusted EBITDA, adjusted free cash flow, net debt and net debt to LTM adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. In reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K, the Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, including of its projected range for adjusted EPS for Fiscal 2025 to net income per diluted share, which is the most directly comparable GAAP measure, under "Fiscal 2025 Ending January 31, 2026" above, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items or there are no meaningful adjustments to be presented in the reconciliation and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income per diluted share, if any. This includes items that have not yet occurred, are out of the Company's control, cannot be reasonably predicted and/or for which there would not be any meaningful adjustment or difference. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The information under "Fiscal 2025 Ending January 31, 2026" above, including expectations about adjusted EPS reflects management's view of current and future market conditions. To the extent actual results differ from our current expectations, the Company's results may differ materially from the expectations set forth above. Other factors, as referenced elsewhere in this press release, may also cause the Company's results to differ materially from the expectations set forth above. Reconciliation of GAAP to Non-GAAP Financial Information BJ'S WHOLESALE CLUB HOLDINGS, INC. Reconciliation of net income to adjusted net income and adjusted EPS (Amounts in thousands, except per share amounts) (Unaudited) Thirteen Weeks Ended May 3, 2025 Thirteen Weeks Ended May 4, 2024 Net income as reported $ 149,768 $ 111,019 Adjustments: Restructuring (a) 1,537 3,307 Tax impact of adjustments to net income (b) (430 ) (918 ) Adjusted net income $ 150,875 $ 113,408 Weighted-average diluted shares outstanding 132,749 134,111 Adjusted EPS (c) $ 1.14 $ 0.85 (a) Represents charges related to the restructuring of certain corporate functions including costs for severance, retention, outplacement, consulting fees, and other third-party fees. (b) Represents the tax effect of the above adjustments at a statutory tax rate of approximately 28%. (c) Adjusted EPS is measured using weighted-average diluted shares outstanding. BJ'S WHOLESALE CLUB HOLDINGS, INC. Reconciliation to adjusted EBITDA (Amounts in thousands) (Unaudited) Thirteen Weeks Ended May 3, 2025 Thirteen Weeks Ended May 4, 2024 Net income $ 149,768 $ 111,019 Interest expense, net 11,099 13,951 Provision for income taxes 42,778 35,785 Depreciation and amortization 69,665 63,422 Stock-based compensation expense 10,654 8,590 Restructuring (a) 1,537 3,307 Other adjustments (b) 335 312 Adjusted EBITDA $ 285,836 $ 236,386 (a) Represents charges related to the restructuring of certain corporate functions including costs for severance, retention, outplacement, consulting fees, and other third-party fees. (b) Other non-cash items, including non-cash accretion on asset retirement obligations and obligations associated with our post-retirement medical plan. BJ'S WHOLESALE CLUB HOLDINGS, INC. Reconciliation to adjusted free cash flow (Amounts in thousands) (Unaudited) Thirteen Weeks Ended May 3, 2025 Thirteen Weeks Ended May 4, 2024 Net cash provided by operating activities $ 208,093 $ 200,847 Less: Additions to property and equipment, net of disposals (140,497 ) (105,741 ) Plus: Proceeds from sale-leaseback transactions — — Adjusted free cash flow $ 67,596 $ 95,106 BJ'S WHOLESALE CLUB HOLDINGS, INC. Reconciliation of net debt and net debt to LTM adjusted EBITDA (Amounts in thousands) (Unaudited) May 3, 2025 Total debt $ 548,880 Less: Cash and cash equivalents (39,484 ) Net debt $ 509,396 Net income $ 573,166 Interest expense, net 48,507 Provision for income taxes 193,423 Depreciation and amortization 268,311 Stock-based compensation expense 49,862 Restructuring 6,657 Other adjustments 119 Adjusted EBITDA (a) $ 1,140,045 Net debt to LTM adjusted EBITDA 0.4x (a) See descriptions of adjustments in the "Reconciliation to Adjusted EBITDA (unaudited)" table above. View source version on Contacts Investor Contact: Catherine ParkVice President, Investor Relationscpark@ 774-512-6744 Media Contact: Kirk SavilleHead of Corporate Communicationsksaville@ 774-512-5597
Yahoo
19-05-2025
- Business
- Yahoo
Investors Will Want BJ's Wholesale Club Holdings' (NYSE:BJ) Growth In ROCE To Persist
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. Speaking of which, we noticed some great changes in BJ's Wholesale Club Holdings' (NYSE:BJ) returns on capital, so let's have a look. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. To calculate this metric for BJ's Wholesale Club Holdings, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.17 = US$781m ÷ (US$7.1b - US$2.5b) (Based on the trailing twelve months to February 2025). Thus, BJ's Wholesale Club Holdings has an ROCE of 17%. In absolute terms, that's a satisfactory return, but compared to the Consumer Retailing industry average of 11% it's much better. View our latest analysis for BJ's Wholesale Club Holdings In the above chart we have measured BJ's Wholesale Club Holdings' prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering BJ's Wholesale Club Holdings for free. Investors would be pleased with what's happening at BJ's Wholesale Club Holdings. Over the last five years, returns on capital employed have risen substantially to 17%. Basically the business is earning more per dollar of capital invested and in addition to that, 31% more capital is being employed now too. So we're very much inspired by what we're seeing at BJ's Wholesale Club Holdings thanks to its ability to profitably reinvest capital. To sum it up, BJ's Wholesale Club Holdings has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. If you'd like to know about the risks facing BJ's Wholesale Club Holdings, we've discovered 1 warning sign that you should be aware of. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
