First Quarter Fiscal 2024 Highlights
- Comparable club sales grew by 1.6% year-over-year.
- Excluding gasoline, comparable club sales rose by 0.6% year-over-year, driven by increased traffic and unit growth.
- Digitally enabled comparable sales surged by 21.0% year-over-year.
- Membership fee income increased by 8.6% year-over-year to $111.4 million.
- Merchandise gross margin rate decreased by 50 basis points year-over-year.
- Earnings per diluted share were $0.83, with adjusted earnings per diluted share at $0.85.
- One new club and one new gas station were opened.
BJ’s Wholesale Club Holdings, Inc. Announces Q1 Fiscal 2024 Results
MARLBOROUGH, Mass.–(BUSINESS WIRE)– BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) reported financial results for the thirteen weeks ending May 4, 2024.
“During the first quarter, we saw significant increases in membership, traffic, and unit volumes, leading to revenue growth and market share gains in our clubs and gas stations,” said Bob Eddy, Chairman and CEO. “Our focus on merchandising improvements and digital conveniences, combined with delivering compelling value, continues to resonate with our members. We remain on track for 12 new club openings this year. I commend our team members for their dedication to our mission of ‘taking care of the families who depend on us,’ and we are optimistic about our long-term growth prospects.”
Key Measures for the Thirteen Weeks Ended May 4, 2024 (First Quarter of Fiscal 2024):
| Financial Metric | Q1 FY2024 | Q1 FY2023 | 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 Ops | $111,019 | $115,988 | (4.3%) |
| Adjusted EBITDA | $236,386 | $251,538 | (6.0%) |
| Net Income | $111,019 | $116,077 | (4.4%) |
| EPS | $0.83 | $0.85 | (2.4%) |
| Adjusted Net Income | $113,408 | $115,646 | (1.9%) |
| Adjusted EPS | $0.85 | $0.85 | —% |
Additional Highlights:
- Total comparable club sales rose by 1.6% in Q1 FY2024 compared to Q1 FY2023. Excluding gasoline, the increase was 0.6%.
- Gross profit increased to $883.4 million in Q1 FY2024 from $880.0 million in Q1 FY2023, driven by higher membership fee income.
- SG&A expenses increased to $721.8 million in Q1 FY2024 from $689.3 million in Q1 FY2023, primarily due to higher labor and occupancy costs.
- Income from continuing operations before income taxes fell to $146.8 million in Q1 FY2024 from $172.1 million in Q1 FY2023.
- Income tax expense decreased to $35.8 million in Q1 FY2024 from $56.1 million in Q1 FY2023, mainly due to higher tax benefits from stock-based compensation.
- Net income decreased to $111.0 million in Q1 FY2024 from $116.1 million in Q1 FY2023.
- Adjusted EBITDA decreased to $236.4 million in Q1 FY2024 from $251.5 million in Q1 FY2023.
- The company repurchased 405,110 shares of common stock for $30.2 million under its existing share repurchase program in Q1 FY2024.
Fiscal 2024 Outlook
“As we progress through the year, we are confident in maintaining our strengths in traffic, unit volumes, and market share, driven by our focus on member value and strategic priorities,” said Laura Felice, Executive Vice President, Chief Financial Officer. “Our outlook for fiscal 2024 remains unchanged.”
Conference Call Details
A conference call to discuss the Q1 FY2024 results is scheduled for today, May 23, 2024, at 8:30 A.M. Eastern Time. The live audio webcast will be available on the Company’s investor relations website at https://investors.bjs.com and will remain accessible for one year. Participants can also dial (833) 470-1428 within the U.S. or +1 (929) 526-1599 outside the U.S., using conference ID 968183.
About BJ’s Wholesale Club Holdings, Inc.
BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) operates membership warehouse clubs that offer significant value to members, fulfilling its purpose of “taking care of the families who depend on us.” The Company provides a wide range of products, including fresh foods, household essentials, and gas. BJ’s, headquartered in Marlborough, Massachusetts, pioneered the warehouse club model in New England in 1984 and currently operates 244 clubs and 176 gas stations in 20 states. For more information, visit www.bjs.com.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are not guarantees. Actual results may differ due to various risks and uncertainties. Key factors include financial market conditions, membership loyalty, economic conditions, competition, regulatory impacts, and strategic initiatives. Further information on risks can be found in the Company’s filings with the SEC.
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures such as adjusted net income, adjusted EPS, adjusted EBITDA, and adjusted free cash flow. These measures are provided as supplemental information and should not be considered substitutes for financial measures calculated in accordance with GAAP. Definitions and reconciliations to the most directly comparable GAAP measures are included in the press release.
