BJ’s Wholesale Club Holdings, Inc. Unveils Q1 Fiscal 2024 Performance Report

BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) revealed its financial performance for the thirteen weeks ending on May 4, 2024. Throughout the first quarter, the company witnessed robust growth in membership, foot traffic, and unit sales, resulting in increased revenue and market share both in its clubs and gas stations. The company attributes these achievements to enhancements in merchandise offerings and digital services aimed at providing compelling value to its members.

Bob Eddy, Chairman and CEO of BJ’s Wholesale Club, expressed pride in the team’s commitment to their mission of supporting families. The company remains optimistic about its long-term growth prospects.

Here are the key highlights:

  • Total comparable club sales surged by 1.6% in the first quarter of fiscal 2024 compared to the same period in fiscal 2023. Excluding gasoline sales, comparable club sales increased by 0.6%.
  • Gross profit rose to $883.4 million in the first quarter of fiscal 2024, driven by growth in membership fee income. However, merchandise gross margin rate, excluding gasoline sales and membership fee income, decreased by 50 basis points due to lower ancillary income.
  • Selling, general, and administrative expenses (“SG&A”) increased to $721.8 million, primarily due to higher labor and occupancy costs resulting from new club and gas station openings, alongside other strategic investments.
  • Income from continuing operations before income taxes decreased to $146.8 million in the first quarter of fiscal 2024 compared to $172.1 million in the same quarter of fiscal 2023.
  • Income tax expense decreased to $35.8 million, mainly due to higher tax benefits from stock-based compensation.
  • Net income declined to $111.0 million compared to $116.1 million in the first quarter of fiscal 2023.
  • Adjusted EBITDA decreased to $236.4 million from $251.5 million in the first quarter of fiscal 2023.
  • The company repurchased 405,110 shares of common stock, totaling $30.2 million, inclusive of associated costs, in the first quarter of fiscal 2024.

Looking ahead to the fiscal year ending February 1, 2025, Laura Felice, Executive Vice President and CFO, affirmed the company’s confidence in maintaining its performance momentum driven by value delivery to members and strategic priorities execution.

A conference call to discuss the first-quarter financial results is scheduled for May 23, 2024, at 8:30 A.M. Eastern Time. The live audio webcast will be accessible on the Company’s investor relations website and will remain available for one year. Participants can also join via phone using the provided details.

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