Warehouse club chain BJ’s Wholesale Club Holdings (NYSE: BJ) slid in trading after the company’s Q2 sales declined by 2.7% year-over-year to $4.96 billion in Q2 but fell short of Street estimates of $5.18 billion. The company’s earnings fell by 8.5% year-over-year to $0.97 per share, beating analysts’ estimates of $0.90 per share.
In Q2, BJ’s comparable sales, excluding gasoline sales, rose by 1.1% year-over-year.
Laura Felice, EVP and CFO of BJ’s Wholesale Club commented on the company’s outlook, “…we also continue to navigate shifts in consumer behavior driven by the broader macroeconomic environment. As a result, we are refining our outlook for the rest of the fiscal year.”
In FY23, the company expects its comparable club sales (excluding gasoline sales) to increase by around 2% year-over-year while membership fee income is estimated to grow by around 5% year-over-year. BJ’s expects FY23 adjusted earnings to be between $3.80 and $3.92 per share.
Analysts are cautiously optimistic about BJ stock with a Moderate Buy consensus rating based on eight Buys, six Holds, and one Sell.
