Total revenue grew 3.4% to $5.38 billion, supported by a 9.0% increase in membership fee income
MARLBOROUGH: BJ’s Wholesale Club Holdings (NYSE: BJ) reported higher earnings and revenue for the second quarter of fiscal 2025, driven by strong membership growth and improved merchandise margins, despite a slight decline in comparable club sales.
For the thirteen weeks ended Aug. 2, net income rose 3.9% year-over-year to $150.7 million, or $1.14 per diluted share, compared to $145.0 million, or $1.08 per share, in the same period last year.
Adjusted EBITDA increased 8.0% to $303.9 million. Total revenue grew 3.4% to $5.38 billion, supported by a 9.0% increase in membership fee income.
“Our business model continues to perform and build upon momentum, as we grow membership and gain market share even in a dynamic environment,” said Bob Eddy, chairman and CEO. “We are on a powerful trajectory and our teams remain steadfast towards executing on our long-term objectives.”
Excluding gasoline, comparable club sales rose 2.3% in Q2. Gross profit climbed to $1.01 billion, with merchandise margin improving by 10 basis points. SG&A expenses increased to $786.4 million, reflecting higher labor and occupancy costs tied to new club and gas station openings.
For the first six months of fiscal 2025, net income surged 17.4% to $300.5 million, while adjusted EBITDA rose 13.9% to $589.7 million. The company repurchased 430,000 shares for $47.4 million during the period, with $952.6 million remaining under its buyback authorization.
BJ’s narrowed and raised its full-year adjusted EPS guidance to a range of $4.20 to $4.35, up from its previous outlook. It expects comparable club sales growth of 2.0% to 3.5%, excluding gasoline, and capital expenditures of approximately $800 million.
“We are pleased with the performance of the business year to date and are confident in the outlook for the back half,” said Laura Felice, CFO.
BJ’s will host its earnings conference call later today to discuss results and guidance.