BJ’s Wholesale Club (BJ) investor relations material

Executive summary

• Net sales rose 15.9% year-over-year to $6.1 billion, with merchandise comps up 3.1% and total comparable club sales up 11.9%.

• Adjusted EPS increased 19.3% year-over-year to $1.36, surpassing expectations.

• Membership reached a record 8.5 million, with membership fee income up 9.9% and a tenured renewal rate of 90%.

• Digitally enabled comp sales grew 30%, with a two-year stacked growth of 64% and digital penetration reaching 16% of merchandise sales.

• Opened three new clubs in Texas and one new gas station, operating 267 clubs and 206 gas stations as of August 2026.

Financial highlights

• Net sales: $6.1 billion (+15.9% year-over-year); adjusted EBITDA: $347.2 million (+14.3% year-over-year); adjusted EPS: $1.36 (+19.3% year-over-year).

• Gross profit: $1.11 billion, up 10.3%; merchandise gross margin rate down 20 bps year-over-year.

• Adjusted free cash flow: $266 million for Q2, up from $87 million in the prior year.

• Net leverage at 0.5x, providing flexibility for growth investments.

• SG&A expenses increased due to labor, occupancy, and new club openings, but improved as a percentage of net sales.

Outlook and guidance

• Full-year comparable club sales growth guidance (excluding gasoline) maintained at 2%-3%.

• Adjusted EPS guidance raised to $4.60–$4.80 for the full year, reflecting strong Q2 results, especially in fuel.

• On track to open 25-30 new clubs over the next two years; capex projected at $800 million for new clubs and distribution enhancements.

• Long-term targets: low- to mid-single-digit comparable club sales growth (excluding gasoline), mid-single-digit total revenue growth, and high-single- to low-double-digit EPS growth.

• Management expects continued growth supported by club expansion, digital enhancements, and infrastructure investments.