BJ’s Wholesale Club (BJ) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 delivered strong top and bottom line growth, with net sales up 4.7% to $5.03 billion and net income up 35% to $149.8 million, driven by traffic, unit growth, and strong performance in perishables, grocery, and sundries.

• Membership reached over 7.5 million, with fee income up 8.1% to $120.4 million, higher-tier penetration at 41%, and a 90% tenured renewal rate, reflecting successful investments in value and digital engagement.

• Digitally enabled comparable sales grew 35% year-over-year, with digital penetration at 13% of merchandise sales and 41% of digital sales fulfilled in-club.

• Five new clubs and four new gas stations opened in Q1, expanding the footprint to 255 clubs and 190 gas stations across 21 states.

• Strategic priorities remain focused on member loyalty, value delivery, digital convenience, and footprint expansion.

Financial highlights

• Net sales reached $5.03 billion, up 4.7% year-over-year; merchandise comp sales (ex-gas) rose 3.9%.

• Operating income rose to $203.6 million, up 26.7% year-over-year; net income grew 35% to $149.8 million.

• Adjusted EBITDA was $285.8 million, up 20.9% year-over-year; adjusted EPS was $1.14, up 34.1%.

• Merchandise gross margin improved by 30 basis points year-over-year.

• Membership fee income rose 8.1% to $120.4 million.

Outlook and guidance

• Fiscal 2025 guidance unchanged: comparable club sales (ex-gasoline) expected to rise 2.0%–3.5% and adjusted EPS projected between $4.10 and $4.30.

• First quarter comps (ex-gas) expected to be the high watermark for the year; first half comps anticipated to outperform the back half.

• Capital expenditures anticipated at approximately $800 million for FY2025.

• Long-term targets include low- to mid-single-digit comp sales growth (ex-gas), mid-single-digit total revenue growth, and high-single- to low-double-digit EPS growth.

• Guidance incorporates current tariff scenarios, cost uncertainties, and macroeconomic volatility.