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BJ’s Wholesale Club Reports Strong Q4 Earnings Amid Membership Growth & Digital Expansion

  • Writer: Hardik Shah
    Hardik Shah
  • Mar 6
  • 3 min read
BJ's Go-To-market strategy is differentiated from it's competitors
Source: BJ's Earnings Presentation

TL;DR


  • Comp sales growth: Comparable club sales (excl. gas) grew 4.6%, driven by higher traffic and digital engagement.

  • Record membership: Membership fee income surged 7.9%, with a 90% renewal rate.

  • Digital transformation: Digitally enabled comp sales up 26% YoY, reflecting a shift toward convenience-driven shopping.


Financial Results


BJ’s Wholesale Club operates a membership-based warehouse model, offering groceries, perishables, general merchandise, and fuel. The company serves 21 states with 252 clubs and 188 gas stations. Its business is built on value-driven pricing, exclusive membership perks, and a growing digital shopping experience.


BJ's Wholesale Club Earnings (Q4 FY24 vs. Q4 FY23)

  • Net sales: $5.16B (-1.7% YoY, due to an extra week in FY23)

  • Comparable club sales (excl. gas): +4.6% YoY, led by traffic and unit growth

  • Membership fee income: $117M (+7.9% YoY)

  • Gross profit: $949M (-1.5% YoY)

  • SG&A expenses: $758M (up due to new club openings and labor investments)

  • Net income: $122.7M (-15.9% YoY)

  • Adjusted EPS: $0.93 (-16.2% YoY, impacted by prior-year 53rd week)


CEO Bob Eddy: “Our record membership, strong digital growth, and robust traffic gains demonstrate the strength of our model. We continue to execute our long-term growth strategy with confidence.”

Outlook & Guidance for FY25

  • Comp sales growth (excl. gas): +2.0% to 3.5%

  • Adjusted EPS: $4.10 to $4.30

  • CapEx: $800M, focused on new clubs and a fourth distribution center


CFO Laura Felice: “Despite macro uncertainties, we are cautiously optimistic. Our focus remains on driving value, membership growth, and digital adoption.”

Operational Performance


Industry & Market Trends

  • Consumer spending remains cautious, with value-driven shopping gaining traction.

  • Inflation and tariffs pose risks, but BJ’s remains well-positioned with strong price competitiveness.

  • Club model gaining market share, benefiting from higher grocery prices elsewhere.


Key Business Milestones

  • Opened 7 new clubs and 12 gas stations in FY24, surpassing 250 total clubs.

  • Entry into Texas (Dallas-Fort Worth) planned for 2026, expanding into its 22nd state.

  • Fresh 2.0 initiative: Double-digit produce comps in past three quarters, driving basket size growth.


Challenges & Risks

  • Tariffs and supply chain shifts could impact costs and margins.

  • Discretionary spending pressure seen in early FY25 trends.

  • Labor & wage costs rising, affecting SG&A leverage.

Bob Eddy on tariffs: “Periods of rising prices and supply chain disruptions have often been good for our company, as value-seeking consumers turn to BJ’s.”

Strategic Initiatives


Expansion & M&A

  • Aggressive club expansion: 25-30 new clubs planned over the next two years.

  • New ambient distribution center to support growth & efficiency.


Technology & Digital Investments

  • Digitally enabled sales surged 26% YoY, led by Express Pay, BOPIC (Buy Online, Pick Up in Club), and same-day delivery.

  • AI-powered search and app enhancements driving higher member engagement.

  • 60% of members now engage digitally, up significantly.


Operational Improvements

  • Investments in automation & supply chain efficiency.

  • Private label expansion driving margin improvement.

  • Merchandising refinements in general merchandise & perishables fueling traffic growth.


Bob Eddy on digital: “Members who shop digitally spend more. Our goal is to make BJ’s the most convenient and rewarding place to shop.”

Capital Allocation


Share Buybacks

  • Repurchased 645K shares in Q4 ($62M).

  • $1B new repurchase authorization through 2029.


Debt & Liquidity

  • Net leverage at 0.5x, with lowest debt levels since IPO.

  • Lowered interest rate on senior secured debt.


The Bottom Line


BJ’s Wholesale Club delivered another strong quarter, with record membership, robust digital growth, and continued traffic gains. While macroeconomic uncertainty looms, the company’s value-driven model, expansion plans, and digital momentum position it well for sustainable growth in FY25 and beyond.


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