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BJ’s Wholesale Club beats revenue estimates in Q2 earnings
Second quarter demonstrates strong momentum in membership, traffic, and unit volumes
2 Min Read
“This was our tenth consecutive quarter of traffic growth,” said Bob Eddy, chairman and CEO, BJ’s Wholesale Club.BJ’s Wholesale Club
BJ’s Wholesale Club saw a strong second quarter, with increased membership, growing traffic and unit growth, and increased growth in digital sales.
For the 13 weeks and 26 weeks ended Aug. 3, comparable club sales increased by 3.1% year over year, with membership fee income increasing by 9.1% year over year to $113.1 million.
Excluding the impact of gasoline sales, comparable club sales increased by 2.4% and 1.5% in the second quarter and first six months of fiscal 2024, respectively, compared to the same periods in fiscal 2023.
The retailer came out with quarterly earnings of $1.09 per share, beating analyst estimates. Digitally enabled comparable sales growth was 22% year over year.
“This was our tenth consecutive quarter of traffic growth,” said Bob Eddy, chairman and CEO, BJ’s Wholesale Club. “We are driving healthy membership expansion across both existing and new clubs.”
BJ’s gross profit increased to $956.6 million in the second quarter of fiscal 2024 from $896.8 million in the second quarter of fiscal 2023. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, increased by 10 basis points over the same quarter of fiscal 2023, primarily driven by improved inventory cost management.
Gross profit increased to $184 billion in the first six months of fiscal 2024 from $177 billion in the first six months of fiscal 2023. Merchandise gross margin rate decreased by 20 basis points in the first six months of fiscal 2024, primarily driven by lower ancillary income.
Net income increased to $145 million in the second quarter of fiscal 2024 compared to $131.3 million in the second quarter of fiscal 2023. Net income increased to $256 million in the first six months of fiscal 2024 compared to $247.4 million in the first six months of fiscal 2023.
Adjusted EBITDA increased by 4.9% to $281.3 million in the second quarter of fiscal 2024 compared to $268.1 million in the second quarter of fiscal 2023. Adjusted EBITDA decreased by 0.4% to $517.7 million in the first six months of fiscal 2024 compared to $519.6 million in the first six months of fiscal 2023.
