BJ’s Wholesale Club (BJ) investor relations material

Executive summary

• Net sales for Q1 FY2026 increased 9.9% year-over-year to $5.53 billion, driven by growth in general merchandise, services, new club openings, and higher gasoline prices and volumes.

• Membership base exceeded 8 million, with fee income up 9.9% to $132.4 million, supported by strong acquisition, retention, and higher-tier penetration; tenured renewal rate remained above 90%.

• Digital engagement surged, with digitally enabled comparable sales up 28% year-over-year and 42% of digital sales fulfilled in-club.

• Net income for the quarter was $142.7 million, down from $149.8 million year-over-year, with adjusted EBITDA up 4.3% to $298.1 million.

• Opened first Texas club and several new gas stations, expanding to 264 clubs and 205 gas stations across 22 states.

Financial highlights

• Comparable club sales increased 6.3%, with merchandise comps up 1.5% and gasoline comps up 4.8%.

• Adjusted EBITDA was $298.1 million, up 4.3% year-over-year; adjusted EPS was $1.10, down due to a prior-year tax benefit.

• Merchandise gross margin rate declined by 10 basis points year-over-year, or 60 basis points excluding tariff refund benefits.

• SG&A expenses increased to $806 million, mainly from higher labor, occupancy, and new club costs.

• Net cash from operating activities was $140 million, down from $208.1 million year-over-year.

Outlook and guidance

• Fiscal 2026 guidance unchanged: comparable club sales (ex-gasoline) expected to grow 2%-3%, adjusted EPS projected between $4.40 and $4.60.

• On track to open 25-30 new clubs over the next two years, with capital expenditures planned at approximately $800 million.

• Membership fee income growth expected to moderate as the prior year fee increase is lapped.

• Pre-opening expenses higher due to expansion, with all costs and freight factored into guidance.

• Long-term targets include mid-single-digit total revenue growth and high-single- to low-double-digit EPS growth (excluding gasoline impact).