BJ’s Wholesale Club (BJ) Q2 2025 earnings summary

Executive summary

• Q2 2024 delivered higher-than-expected comps and profits, with net sales up 4.8% to $5.1 billion, driven by strong traffic, robust membership growth, and the largest member count increase since the pandemic.

• Membership fee income rose 9.1% to $113.1 million, with over 7 million members and a tenured renewal rate of 90%.

• Digital business expanded rapidly, with digitally enabled comp sales up 22% year-over-year and digital now representing 12% of merchandise sales.

• Strategic priorities include expanding the club footprint, improving member loyalty, and investing in merchandising, digital, real estate, and membership enhancements.

• Net income for Q2 2024 was $145.0 million, up 10.4% year-over-year; adjusted EPS was $1.09, up 10.1%.

Financial highlights

• Net sales reached $5.1 billion, up 4.8% year-over-year; total revenues were $5.2 billion.

• Comparable club sales grew 3.1% year-over-year; merchandise comp sales (excluding gas) rose 2.4%.

• Adjusted EBITDA increased 4.9% to $281.3 million, representing 5.5% of net sales.

• Adjusted EPS was $1.09, up 10.1% year-over-year.

• Free cash flow for Q2 FY24 was $87.5 million; adjusted free cash flow for the first six months was $182.6 million.

Outlook and guidance

• Fiscal 2024 comparable club sales (excluding gas) expected to grow 1–2%, with Q4 outperforming Q3.

• Adjusted EPS guidance for fiscal 2024 is $3.75–$4.00, with results likely trending toward the lower end.

• Full-year merchandise gross margin rate expected to be about flat year-over-year.

• SG&A deleverage anticipated in the back half due to investments and new club openings.

• Long-term targets call for low- to mid-single-digit comp sales growth and high-single- to low-double-digit EPS growth, excluding gasoline.