BJ’s Wholesale Earnings: What to Watch

BJ’s Wholesale Club has been a big beneficiary of the consumer behavior changes brought on by the pandemic. The warehouse retailer is capitalizing on soaring demand for one-stop shopping trips that allow people to stock up on essential home supplies while splurging on discretionary treats like consumer electronics.

Those favorable industry trends have allowed the regional specialist to outpace even national rivals like Costco  and Walmart‘s Sam’s Club. This positive operating story will be put to the test when BJ’s announces its latest results on Nov. 19.

With that competitive backdrop in mind, let’s look at the trends that could determine whether BJ’s stock continues outpacing the market through late 2020.

Market-share battles

Market-share gains have been a key factor behind BJ’s stock price rally this year. All of its peers have posted record growth during the pandemic, but there’s been an unusually wide range of sales gains as consumers flocked into the big-box warehouse shopping niche.

BJ’s sales growth has looked strong in the context of its peers, with comps rising 24% in the fiscal second quarter (which ended in early August), compared with Costco’s 14% boost through late August. Sam’s Club notched a 13% spike through July, too. (These metrics aren’t fully comparable, because Costco’s reported comps figure adjusts for changes in gas prices, but is being held back by the change in the volume of gas demand since the start of the pandemic. BJ’s comps metric excludes the entire impact of gasoline sales.)