BJ’s Wholesale Club Holdings, Inc. Announces (NYSE: BJ), a leading operator of membership-only warehouse clubs in the United States, released its financial results for the thirteen and twenty-six weeks ended August 2, 2025. The company, known for its value-driven model and commitment to delivering savings to members, posted a solid performance across key metrics despite operating in what it described as a “dynamic and evolving retail environment.”
Bob Eddy, Chairman and Chief Executive Officer of BJ’s Wholesale Club, expressed confidence in the company’s trajectory. “Our business model continues to perform and build upon momentum, as we grow membership and gain market share even in a dynamic environment,” Eddy said. “We enter the back half of the year on solid footing and confident in our ability to deliver strong results. We are on a powerful trajectory and our teams remain steadfast towards executing on our long-term objectives.”
Comparable Club Sales Performance
For the second quarter of fiscal 2025, total comparable club sales decreased slightly by 0.3% compared to the same quarter last year. However, when excluding the impact of gasoline sales, comparable club sales actually rose by 2.3%. Over the first six months of the fiscal year, total comparable club sales increased 0.6%, and on a gasoline-excluded basis, sales improved by 3.1%.
These figures highlight the resilience of BJ’s core retail business. Gasoline remains an important traffic driver for the company, but fluctuations in fuel prices often obscure the underlying performance of its merchandise categories. When stripped of this volatility, BJ’s continued to demonstrate healthy growth across its assortment, reflecting strong consumer demand for grocery, household goods, and value-oriented products.
Membership Strength and Fee Income Growth
Membership remains at the heart of BJ’s operating model, and fiscal 2025 has underscored that strength. Membership fee income increased to $123.3 million in the second quarter, up from $113.1 million in the prior-year quarter. For the first six months of the year, membership fee income rose to $243.7 million compared to $224.5 million in the prior-year period.
The growth was fueled by strong membership acquisition, higher retention rates, and an increasing mix of higher-tier memberships. BJ’s also benefited from its January 2025 membership fee increase, which positively impacted revenue streams without dampening member enthusiasm. The company emphasized that both new and existing clubs contributed to this momentum, demonstrating the broad appeal of its membership value proposition.
Gross Profit and Margins
Gross profit rose meaningfully in the second quarter, reaching $1.01 billion compared to $956.6 million in the same period last year. For the first half of the year, gross profit reached $1.98 billion, up from $1.84 billion a year earlier.
Merchandise gross margin rate, excluding gasoline sales and membership fee income, improved by 10 basis points year-over-year in the second quarter and 20 basis points for the first six months. The modest margin expansion reflects the company’s disciplined approach to pricing, inventory management, and merchandising strategies. Management noted that the business continues to focus on profitable growth across a broad assortment, while balancing affordability for members.
Operating Expenses and Investment in Growth
Selling, general, and administrative expenses (SG&A) increased to $786.4 million in the second quarter, compared to $750.3 million in the prior year. For the first six months of fiscal 2025, SG&A rose to $1.55 billion, up from $1.47 billion in the same period of fiscal 2024.
The rise in expenses was largely attributed to higher labor and occupancy costs tied to new club and gas station openings. Additionally, BJ’s noted that the expansion of owned clubs resulted in increased depreciation expense year-over-year. Despite the higher costs, management emphasized that these investments are integral to long-term growth, particularly as BJ’s expands its physical footprint and strengthens its infrastructure.
Earnings and Profitability Metrics
Income before income taxes rose to $206.1 million in the second quarter, compared to $190.9 million last year. For the first six months of fiscal 2025, the company reported $398.7 million in income before income taxes, compared to $337.7 million in the first half of 2024.
Income tax expense also increased, reaching $55.4 million in the second quarter, versus $45.9 million in the prior year. For the six-month period, tax expense totaled $98.2 million compared to $81.7 million a year earlier.
Net income rose modestly to $150.7 million in the second quarter, compared to $145.0 million in the prior-year quarter. For the first half, net income grew more significantly, reaching $300.5 million compared to $256.0 million in fiscal 2024.
Adjusted EBITDA, a key measure of operating performance, rose 8.0% to $303.9 million in the second quarter, compared to $281.3 million in the prior year. Over the first six months of fiscal 2025, adjusted EBITDA increased by 13.9% to $589.7 million compared to $517.7 million a year earlier. These results reflect continued strength in the company’s underlying operations, supported by revenue growth, disciplined cost control, and margin management.
Share Repurchase Program and Capital Allocation
BJ’s also continued to return value to shareholders through its stock repurchase program. During the second quarter of fiscal 2025, the company repurchased approximately 375,000 shares of common stock for a total of $41.2 million, including associated costs. Over the first six months of the year, share repurchases totaled 430,000 shares for $47.4 million. As of the end of the second quarter, BJ’s still had $952.6 million available under its existing authorization, underscoring its capacity to continue buybacks as part of its broader capital allocation strategy.
