Financial Results BJ’s Wholesale Club Reports Fiscal Q1 2025 Performance
BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ), a leading operator of membership warehouse clubs, announced its financial results for the first quarter of fiscal year 2025, which ended on May 3, 2025. The company delivered a robust start to the year, underscoring the strength of its business model and the continued momentum behind its long-term strategic priorities.
Strong Start to Fiscal 2025
Bob Eddy, Chairman and Chief Executive Officer of BJ’s Wholesale Club, expressed confidence in the company’s progress and outlook:
“We reported a strong start to the year, demonstrating the power of our model and continued momentum in our long-term growth priorities,” Eddy said. “Delivering great value is essential in today’s environment, and I am proud of our team members who remain committed to taking care of the families who depend on us.”
The results reflect BJ’s ability to navigate the challenging economic backdrop by focusing on value, operational efficiency, and enhanced customer experience. The company’s performance was highlighted by several key financial metrics that showcase growth across sales, profitability, and membership engagement.
Key Financial Highlights
- Comparable Club Sales Growth: BJ’s Wholesale Club reported a 1.6% increase in total comparable club sales in the first quarter of fiscal 2025 compared to the same quarter in the previous year. When excluding gasoline sales, which can be more volatile due to fluctuating fuel prices, comparable club sales rose even more significantly by 3.9%. This suggests that core merchandise sales are strengthening and resonating well with customers.\
- Membership Fee Income: Membership remains a critical driver of BJ’s business, generating recurring revenue and fostering customer loyalty. Membership fee income increased to $120.4 million in Q1 2025, up from $111.4 million in Q1 2024. This growth was fueled by several factors: stronger membership acquisition and retention efforts, higher penetration of premium tier memberships, and the implementation of an increase in annual membership fees effective January 2025. The increase in membership fees reflects BJ’s confidence in the value proposition it offers members.
- Gross Profit and Margin Expansion: The company reported a gross profit of $969.5 million for the quarter, up from $883.4 million a year ago. Notably, the merchandise gross margin rate—which excludes gasoline sales and membership fees—increased by 30 basis points compared to the same quarter last year. This improvement demonstrates BJ’s ongoing focus on managing product mix, pricing strategies, and cost efficiencies to drive profitable growth across its broad merchandise assortment.
- Operating Expenses: Selling, general, and administrative (SG&A) expenses increased to $760.9 million from $721.8 million in the prior year quarter. The rise in expenses was primarily attributable to higher labor costs and occupancy expenses linked to new club openings and the addition of new gas stations. Furthermore, an increase in the number of owned clubs led to higher depreciation expenses year-over-year. Despite the increase in SG&A, the company’s operating leverage remains strong given the revenue growth.
- Income Before Taxes: Income before income taxes rose significantly to $192.5 million, compared to $146.8 million in the same period last year, reflecting the combined benefits of revenue growth, improved margins, and disciplined cost management.
- Income Tax Expense: Income tax expense increased to $42.8 million from $35.8 million in the first quarter of fiscal 2024. The higher tax expense mainly reflects the increase in pre-tax income, partially offset by tax benefits stemming from stock-based compensation.
- Net Income Growth: Net income surged to $149.8 million, compared with $111.0 million in Q1 2024, marking a robust year-over-year increase that underscores the company’s strong earnings momentum.
- Adjusted EBITDA: The company’s adjusted EBITDA—a key measure of operating profitability—increased by 20.9% to $285.8 million for the quarter, compared to $236.4 million in the prior year period. This improvement demonstrates the company’s ability to enhance earnings before interest, taxes, depreciation, and amortization while investing in growth initiatives.
- Share Repurchases: BJ’s Wholesale Club continued to return value to shareholders by repurchasing 55,000 shares of its common stock during the quarter, totaling $6.2 million including associated costs. The ongoing share repurchase program reflects the company’s confidence in its financial position and future prospects.
