Shares in BJ's Wholesale Club (NYSE:BJ) slid more than 3% in premarket trading Thursday after the company delivered soft annual guidance for the fiscal 2025.
For the fiscal Q2 2024, BJ’s reported earnings per share (EPS) of $1.09, beating analysts' expectations of $1.01. The company generated $5.21 billion in revenue for the period, also above the consensus projection of $5.15 billion.
Membership fees rose to $113.1 million, marking a 9.1% year-over-year increase and topping the estimated $110.9 million.
Merchandise inventories were slightly up at $1.55 billion, a 0.4% year-over-year increase, but slightly below the expected $1.59 billion.
It expects fiscal 2024 comparable club sales, excluding gasoline, to grow 1% to 2% year-over-year, with strong traffic, unit growth, and a robust perishables business likely pushing results to the higher end of the range.
Merchandise gross margins are projected to remain roughly flat compared to the previous year.
Looking further ahead, BJ's forecasts EPS for the fiscal 2025 to be between $3.75 and $4.00, compared to the consensus estimate of $3.93.
"As we look ahead, we remain confident in our ability to drive long-term growth and shareholder value led by our continued focus on executing our strategic priorities and delivering significant value to our members," said Laura Felice, Executive Vice President and CEO of BJ's Wholesale Club.