MARLBOROUGH, Mass. - BJ's Wholesale Club Holdings, Inc. (NYSE: NYSE:BJ) reported a mixed fourth quarter as earnings surpassed analyst expectations while revenue slightly missed forecasts.
The company announced an adjusted EPS of $1.11, which was $0.05 higher than the analyst estimate of $1.06. However, revenue for the quarter was $5.35 billion, falling short of the consensus estimate of $5.4 billion.
Following the earnings announcement, the company's stock experienced a marginal decline of 0.30%.
The company's fourth-quarter performance showcased a year-over-year increase in adjusted EPS by 11.0%, rising from $1.00 to $1.11. Net sales also saw a significant uptick, growing by 8.7% compared to the same period last year. Despite the revenue miss, membership fee income increased by 6.5% YoY to $108.4 million, and the company maintained a strong 90% tenured member renewal rate throughout fiscal 2023.
Bob Eddy, Chairman and CEO of BJ’s Wholesale Club, highlighted the company’s robust membership growth and high retention rates as key drivers of success. He also noted impressive market share gains, traffic acceleration, and digitally-enabled sales growth of 28.0% YoY.
For the upcoming fiscal year 2024, BJ's Wholesale Club provided guidance for adjusted EPS in the range of $3.75 to $4.00, with the midpoint at $3.875. This guidance is slightly below the analyst consensus of $3.86. The company expects comparable club sales, excluding gasoline sales, to increase by 1% to 2% YoY and merchandise gross margins to improve by approximately 20 basis points YoY.
Laura Felice, Executive Vice President and CFO, expressed confidence in the company's structural operating advantages and strategic priorities, which are expected to drive strong results despite macro-driven uncertainties.
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