Shares of BJ’s Wholesale Club Holdings (BJ) surged an impressive 12.2% on Mar. 6, hitting an all-time high after the retail chain reported solid earnings.
For the fiscal fourth quarter ended Feb. 1, the company reported adjusted earnings per share of 93 cents, beating the consensus estimate of 87 cents. Revenue fell 1.5% year-over-year to $5.28 billion but surpassed analysts’ forecast of $5.27 billion.
Comparable club sales, a key metric for retail performance, jumped 4% year-over-year, which was also above market consensus.
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The company’s CEO, Bob Eddy, credited the strong performance to “all-time high membership results.”
The membership fee income climbed nearly 8% to $117 million, reflecting both growth in member numbers and the lingering effects of a fee increase announced in late 2024 and took effect in January 2025.
“Our improved assortment, investments in value and significant growth in digital sales drove our 12th consecutive quarter of traffic growth. We are also growing our footprint at pace to serve even more members,” Eddy said.
Digitally enabled sales increased by 26%, a sign that BJ’s investments in e-commerce and convenience were paying off as more shoppers turned to online ordering and pickups.
The earnings beat wasn’t the only fuel for the stock’s rally.
BJ’s Wholesale closed at $112.33 on Mar. 6. The stock is up more than 25% year-to-date, while the S&P 500 index is down 2.4% during the period.
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BJ’s Wholesale has bold plans
Founded in 1984 in Massachusetts, BJ’s Wholesale Club started as a modest operation, aiming to bring bulk-buying savings to East Coast shoppers.
Unlike its larger rivals, Costco and Sam’s Club, BJ’s focused on a more localized strategy and established a strong foothold in the eastern United States.
Now, with over 200 clubs and 7.5 million members, BJ’s has become a formidable competitor to its bigger peers.
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Together with the earnings results, BJ’s management unveiled an ambitious roadmap, announcing plans to open 25 to 30 new stores over the next two fiscal years, including a push into Texas with several locations slated for the Dallas-Fort Worth area starting in 2026.
“Economic expansion and a growing population make Texas a great fit for us,” Eddy said.
BJ’s Wholesale also plans to open several new locations in 2025 across Florida, Georgia and Tennessee.
President Donald Trump’s recent escalation of tariffs on imports from China, Canada, and Mexico has caused uncertainty for retailers, as imported products are facing higher costs.
Major retailers like Target (TGT) and Best Buy (BBY) have warned of price increases ahead.
Related: Popular retailers may get smacked hard by tariffs
“We also recognize the macro-driven uncertainties in the operating environment and as such, remain cautiously optimistic about the year,” said Laura Felice, Chief Financial Officer of BJ’s.
BJ’s expects its adjusted EPS for the full year 2025 to fall between $4.10 and $4.30, while Wall Street analysts predict $4.30.
Its comparable club sales, excluding the impact of gasoline sales, are expected to increase 2.0% to 3.5% year-over-year.
Analyst raise BJ’s stock price target after earnings
Investment firm Gordon Haskett raised its price target on BJ’s Wholesale to $130 from $120 and reiterated a buy rating following the earnings, according to thefly.com.
The firm highlighted BJ’s solid fourth-quarter performance and its realistic growth plan for 2025. More importantly, it noted that the company “provided both duration/visibility for both new club growth and sales productivity in the years to come.” As a result, the stock is “up nicely.”
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Gordon Haskett added that the stock could have more upside as the warehouse club operator continues to execute nicely.
BJ’s Wholesale closed at $112.33 on Mar. 6. The stock is up more than 25% year-to-date, while the S&P 500 index is down 2.4% during the period.
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