MARLBOROUGH, Mass.–(BUSINESS WIRE)–BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) today announced its financial results for the thirteen weeks ended May 4, 2024.
“During the first quarter, we delivered strong increases in membership, traffic and unit volumes. This resulted in revenue growth and market share gains in our clubs and at our gas stations. Our merchandising improvements and digital conveniences, grounded in delivering compelling value, are resonating with our members. We are also growing our footprint and remain on track for 12 new club openings this year,” said Bob Eddy, Chairman and Chief Executive Officer, BJ’s Wholesale Club. “I am proud of our team members for their continued dedication to our purpose of ‘taking care of the families who depend on us’. We remain confident in the long-term growth prospects of our Company.”
Key Measures for the Thirteen Weeks Ended May 4, 2024 (First Quarter of Fiscal 2024):
|
BJ’S WHOLESALE CLUB HOLDINGS, INC. (Amounts in thousands, except per share amounts) |
||||||||
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
% Growth (Decline) |
|||
|
Net sales |
$ |
4,807,129 |
|
$ |
4,620,620 |
|
4.0 |
% |
|
Membership fee income |
|
111,390 |
|
|
102,522 |
|
8.6 |
% |
|
Total revenues |
|
4,918,519 |
|
|
4,723,142 |
|
4.1 |
% |
|
|
|
|
|
|
|
|||
|
Operating income |
|
160,755 |
|
|
186,770 |
|
(13.9 |
)% |
|
Income from continuing operations |
|
111,019 |
|
|
115,988 |
|
(4.3 |
)% |
|
Adjusted EBITDA (a) (b) |
|
236,386 |
|
|
251,538 |
|
(6.0 |
)% |
|
Net income |
|
111,019 |
|
|
116,077 |
|
(4.4 |
)% |
|
EPS (c) |
|
0.83 |
|
|
0.85 |
|
(2.4 |
)% |
|
Adjusted net income (a) |
|
113,408 |
|
|
115,646 |
|
(1.9 |
)% |
|
Adjusted EPS (a) |
|
0.85 |
|
|
0.85 |
|
— |
% |
|
Basic weighted-average shares outstanding |
|
132,397 |
|
|
133,312 |
|
|
|
|
Diluted weighted-average shares outstanding |
|
134,111 |
|
|
135,902 |
|
|
|
| (a) | See “Note Regarding Non-GAAP Financial Information.” |
| (b) | Adjusted EBITDA for the 13 weeks ended April 29, 2023 has been recast to exclude adjustments for pre-opening expenses and non-cash rent expense to conform to the current period definition. |
| (c) | EPS represents net income per diluted share. |
Additional Highlights:
- Total comparable club sales increased by 1.6% in the first quarter of fiscal 2024 compared to the first quarter of fiscal 2023. Excluding the impact of gasoline sales, comparable club sales increased by 0.6% in the first quarter of fiscal 2024 compared to the same period in fiscal 2023.
- Gross profit increased to $883.4 million in the first quarter of fiscal 2024 from $880.0 million in the first quarter of fiscal 2023 driven by growth in membership fee income. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, decreased by 50 basis points over the same quarter of fiscal 2023, primarily driven by lower ancillary income.
- Selling, general and administrative expenses (“SG&A”) increased to $721.8 million in the first quarter of fiscal 2024 compared to $689.3 million in the first quarter of fiscal 2023. The increase was primarily driven by increased labor and occupancy costs as a result of new club and gas station openings in addition to other investments to drive strategic priorities.
- Income from continuing operations before income taxes decreased to $146.8 million in the first quarter of fiscal 2024 compared to $172.1 million in the first quarter of fiscal 2023.
- Income tax expense decreased to $35.8 million in the first quarter of fiscal 2024 compared to $56.1 million in the first quarter of fiscal 2023. The decrease in income tax expense is primarily driven by higher tax benefits from stock-based compensation.
- Net income decreased to $111.0 million in the first quarter of fiscal 2024 compared to $116.1 million in the first quarter of fiscal 2023.
- Adjusted EBITDA decreased to $236.4 million in the first quarter of fiscal 2024 compared to $251.5 million in the first quarter of fiscal 2023.
- Under its existing share repurchase program, the Company repurchased 405,110 shares of common stock, totaling $30.2 million, inclusive of associated costs, in the first quarter of fiscal 2024.
Fiscal 2024 Ending February 1, 2025 Outlook
“As we look ahead to the rest of the year, we remain confident in our ability to maintain our strength in traffic, unit volumes and market share led by our continued focus on delivering value to our members and executing on our strategic priorities,” said Laura Felice, Executive Vice President, Chief Financial Officer, BJ’s Wholesale Club. “Our outlook remains unchanged for fiscal 2024.”
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 244 clubs and 176 BJ’s Gas® locations in 20 states. For more information, please visit us at www.bjs.com.
