BJ’s Wholesale Club (NYSE:BJ) Posts Earnings Results, Beats Estimates By $0.03 EPS

BJ’s Wholesale Club (NYSE:BJ) issued its quarterly earnings data on Thursday. The company reported $0.96 EPS for the quarter, beating the consensus estimate of $0.93 by $0.03, FiscalAI reports. BJ’s Wholesale Club had a return on equity of 28.66% and a net margin of 2.72%.The firm had revenue of $5.58 billion during the quarter, compared to analyst estimates of $5.54 billion. During the same quarter in the prior year, the business posted $0.93 EPS. The business’s revenue for the quarter was up 5.6% compared to the same quarter last year. BJ’s Wholesale Club updated its FY 2026 guidance to 4.400-4.600 EPS.

Here are the key takeaways from BJ’s Wholesale Club’s conference call:

• BJ’s closed fiscal 2025 with record full-year Adjusted EPS of $4.40 and Q4 Adjusted EPS of $0.96, with net sales up 5.5% and merchandise comps ex-gas +2.6%, driven by continued traffic and market-share gains.
• Membership momentum remains a core strength—over 8 million members after adding 500,000 this year, a 90% tenured renewal rate, 42% higher-tier penetration, and membership fee income up ~10.9%, supporting durable MFI growth.
• Accelerated store growth—opened 14 new clubs in 2025 (company record) with new-club performance above expectations, and remains on track to open 25–30 clubs across 2025–2026, including entry into Dallas–Fort Worth.
• Digital and technology investments are scaling—digitally enabled sales penetration reached 16%, digital sales grew 31% in Q4 with >90% of orders fulfilled from clubs, plus AI initiatives (Ask Bev) and a planned automated distribution center in Ohio (2027).
• Margin and expense pressures—merchandise margin (ex-gas) fell ~50 bps in Q4 due to a mix shift toward lower-margin general merchandise and intentional price/value investments, while SG&A will slightly deleverage for accelerated new-club openings and strategic investments; FY26 EPS guidance is $4.40–$4.60.

BJ’s Wholesale Club Stock Down 1.5%

NYSE:BJ opened at $98.49 on Friday. The company has a debt-to-equity ratio of 0.18, a current ratio of 0.79 and a quick ratio of 0.16. The company’s fifty day moving average price is $95.70 and its 200-day moving average price is $94.52. BJ’s Wholesale Club has a 1-year low of $86.68 and a 1-year high of $121.10. The firm has a market capitalization of $12.89 billion, a P/E ratio of 22.69, a PEG ratio of 2.71 and a beta of 0.36.

Institutional Investors Weigh In On BJ’s Wholesale Club

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Strive Financial Group LLC acquired a new position in shares of BJ’s Wholesale Club in the 4th quarter valued at about $25,000. Parkside Financial Bank & Trust grew its holdings in BJ’s Wholesale Club by 147.9% during the fourth quarter. Parkside Financial Bank & Trust now owns 290 shares of the company’s stock worth $26,000 after acquiring an additional 173 shares during the period. Sunbelt Securities Inc. purchased a new position in BJ’s Wholesale Club during the third quarter valued at approximately $34,000. Los Angeles Capital Management LLC acquired a new position in BJ’s Wholesale Club in the fourth quarter valued at approximately $51,000. Finally, Danske Bank A S acquired a new position in BJ’s Wholesale Club in the third quarter valued at approximately $75,000. 98.60% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting BJ’s Wholesale Club

Here are the key news stories impacting BJ’s Wholesale Club this week:

• Positive Sentiment: Q4 results beat expectations — EPS $0.96 and revenue $5.58B, modest year‑over‑year growth and continued traffic gains. BJ’s Wholesale Club Holdings, Inc. Announces Fourth Quarter and Full Fiscal 2025 Results
• Positive Sentiment: Membership and digital momentum — record membership, >90% renewal, membership fee income up ~11%, and online sales up over 30%, supporting recurring revenue and lifetime value. BJ’s Wholesale Is Growing, Buying Back Stock, and Still Dirt Cheap
• Positive Sentiment: Strong free cash flow and active share repurchases — buybacks are meaningful and reduce share count, supporting EPS over time. BJ’s Wholesale Is Growing, Buying Back Stock, and Still Dirt Cheap
• Neutral Sentiment: FY‑2026 guidance set to $4.40–$4.60 EPS with 2–3% comp‑sales growth and continued club expansion — guidance implies modest year‑over‑year EPS growth and a cautious outlook on margins as it invests to grow. BJ’s outlines 2-3% comp sales growth and $4.40-$4.60 EPS guidance for 2026 while accelerating club expansion
• Neutral Sentiment: Analyst views are mixed — some emphasize membership and cash‑flow strength while others flag tepid guidance and execution risk, producing conflicting recommendations. Analysts Have Conflicting Sentiments on These Consumer Goods Companies: Bj’s Wholesale Club Holdings (BJ) and Once Upon a Farm, PBC (OFRM)
• Negative Sentiment: Guidance disappointed some investors — management’s FY EPS range was perceived as short of Street hopes, triggering a near‑term share pullback. BJ’s Wholesale Club shares slip as EPS guidance falls short
• Negative Sentiment: Margin pressure and near‑term EPS growth could slow — promotions, store‑opening costs and mix shifts compressed merchandise margins and management signaled profitability could be pressured in FY‑2026. BJ’s Wholesale Club: Investing In Expansion, EPS Growth To Slow

Analyst Ratings Changes

A number of brokerages have recently weighed in on BJ. Morgan Stanley dropped their price target on BJ’s Wholesale Club from $105.00 to $100.00 and set an “equal weight” rating on the stock in a research note on Thursday, January 15th. Evercore reissued a “positive” rating on shares of BJ’s Wholesale Club in a research report on Thursday. Citigroup reaffirmed a “buy” rating on shares of BJ’s Wholesale Club in a report on Friday, February 20th. TD Cowen reissued a “buy” rating on shares of BJ’s Wholesale Club in a report on Monday, November 24th. Finally, Wells Fargo & Company upped their target price on BJ’s Wholesale Club from $105.00 to $110.00 and gave the company an “overweight” rating in a research report on Friday, February 27th. Nine equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $107.63.

BJ’s Wholesale Club Company Profile

BJ’s Wholesale Club, headquartered in Westborough, Massachusetts, is a membership-based warehouse retailer offering a wide range of products and services primarily to small businesses and individual consumers. The company operates large-format clubs that provide value-priced groceries, health and beauty products, electronics, home goods, furniture, seasonal items and automotive supplies. In addition to its in-club offerings, BJ’s features fuel stations at many locations and operates an e-commerce platform for online ordering and home delivery.

Founded in 1984 as a division of Zayre Corp., BJ’s Wholesale Club quickly expanded throughout the Northeastern United States.