BJ Earnings: BJ’s Wholesale Club Exceeds Q1 Estimates
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BJ Earnings: BJ’s Wholesale Club Exceeds Q1 Estimates

Story Highlights

BJ’s Wholesale Club delivered robust first-quarter numbers as consumers lapped up its value-for-money offerings.

BJ’s Wholesale Club (NYSE:BJ) shares are in focus today after the operator of warehouse clubs delivered better-than-expected first-quarter results.

BJ’s Resilient Q1 Performance

During the quarter, BJ’s top line increased by 4.2% year-over-year to $4.92 billion, exceeding expectations by $60 million. Similarly, its EPS of $0.85 fared better than estimates by $0.02. While its comparable club sales increased by 1.6%, digitally enabled comparable sales fared even better with an increase of 21%. The company’s total membership fee income increased by 8.6% to $111.4 million.

Importantly, BJ is experiencing gains in membership, traffic, as well as unit volumes. Clearly, its emphasis on delivering value is paying off at a time when consumers are grappling with elevated inflation. Buoyed by its performance, BJ is opening 12 new clubs this year. The company currently operates around 244 clubs and 176 gas outlets across 20 states.

For the full year, the company continues to expect a 1%-2% growth in its comparable sales (excluding gasoline sales) and an EPS of $3.75-$4. Notably, BJ’s strong Q1 performance comes at a time when multiple retail names are struggling in the current macroeconomic environment. Not surprisingly, shareholders have pushed the company’s shares nearly 21% higher over the past six months.

What Is BJ Stock Forecast?

Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average BJ price target of $82.93. However, analysts’ views on the company could see a revision following today’s earnings report.

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