BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) shares gained 1.16% in pre-market trading on Friday after the warehouse club operator reported second-quarter results ahead of Wall Street expectations and raised its full-year earnings guidance.
Adjusted earnings came in at $1.36 per share, beating the consensus estimate of $1.17 by $0.19. Revenue increased 15.9% year on year to $6.09 billion from $5.26 billion, also exceeding analysts’ forecast of $5.97 billion.
Comparable sales climb as gasoline business performs strongly
Comparable club sales increased 11.9% from the previous year, with strong gasoline sales providing a significant contribution to the quarter’s growth.
Excluding gasoline, comparable club sales advanced 3.1% year on year, highlighting continued underlying growth across BJ’s core retail operations.
Membership also remained a key source of momentum. Membership fee income rose 9.9% to $135.6 million, while the company’s total member base reached a record 8.5 million.
“We delivered a strong second quarter, coming in ahead of our expectations across sales and profitability, with strong membership momentum,” said Bob Eddy, Chairman and Chief Executive Officer.
BJ’s raises fiscal 2026 earnings guidance
Following the better-than-expected quarter, BJ’s increased its adjusted earnings-per-share guidance for fiscal 2026, which ends January 30, 2027.
The company now expects adjusted EPS of between $4.60 and $4.80, giving a midpoint of $4.70 and representing an improvement from its previous outlook.
BJ’s maintained its forecast for comparable club sales excluding gasoline to increase between 2.0% and 3.0% year on year.
“We delivered solid profitability, grew membership fee income, and outperformed on gas — all of which enabled us to raise our full year adjusted EPS guidance,” said Laura Felice, Executive Vice President and Chief Financial Officer.
Profit rises as BJ’s continues store expansion
Operating income increased 16.5% during the second quarter to $252.4 million, while net income climbed 15.4% to $173.9 million.
The retailer also continued expanding its physical footprint, opening three new clubs and one gas station during the quarter.
Alongside investment in growth, BJ’s continued returning capital to shareholders. The company repurchased 1.4 million shares for $124.1 million during the period.
The combination of stronger-than-expected earnings and revenue, record membership, positive comparable sales and higher full-year profit guidance helped lift BJ’s shares ahead of Friday’s opening bell.