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BJ’s Wholesale Club Beats Q3 Profit Target, Raises Full-Year Guidance

Stronger membership income helped the warehouse retailer beat forecasts, lifting its full-year outlook.

Overview

  • Adjusted earnings reached $1.16 per share versus expectations of about $1.09 to $1.10, with revenue up 4.9% to $5.35 billion in line with estimates.
  • Membership fee income rose 9.8% to $126.3 million, while digitally enabled sales increased 30% year over year.
  • Comparable club sales grew 1.1%, or 1.8% excluding gasoline, and the company cited continued store expansion and investments.
  • Full-year adjusted EPS guidance was raised to $4.30 to $4.40 from $4.20 to $4.35, and the comparable sales outlook was narrowed to 2% to 3% from up to 3.5%.
  • Net income slipped to $152.1 million from $155.7 million on higher SG&A costs, and shares rose about 3.7% in premarket trading after recent analyst price-target cuts.