BJ's saw record net income and adjusted EBITDA for the first quarter of its fiscal year.
BJ’s Wholesale Club is reporting a favorable first quarter ended April 29, with comparable-club sales, excluding gasoline sales, increasing 5.7% year over year. Income from continuing operations increased by 3.1% to $116 million, and adjusted EBITDA increased 16.4% year over year to $257 million.
During the quarter, digitally enabled comparable sales grew 19% year over year and membership fee income increased 6.1% to $102.5 million. Gross profit increased to $880 million, from $790.6 million in the first quarter of fiscal year 2022.
“We reported a record first quarter in net income and adjusted EBITDA, demonstrating the power of our business model and the warehouse club channel,” said BJ’s President and CEO Bob Eddy. “We drove top-line growth, bolstered by robust traffic and share gains. We also made significant improvements on our merchandise margins, largely due to waning supply chain pressures and moderating inflation. We remain focused on our strategic priorities and believe that we are well positioned to maximize long-term shareholder value.”
BJ’s first quarter also brought the openings of two new clubs and three new gas stations, as well as the successful launch of its credit card program with Capital One and Mastercard. In February, the club retailer revealed its expansion into Tennessee, with a location 20 miles southeast of downtown Nashville in La Vergne set to open this year.
As for the remainder of the fiscal year, BJ’s has no plans to change its outlook.
“Our fiscal 2023 outlook on our business remains unchanged, given the sustained strength in our grocery business and our gains in market share,” said Laura Felice, EVP and CFO. “We are confident that the strength of our core business and our intense focus on delivering value will continue to drive long-term growth.”
Marlborough, Mass.-based BJ’s operates 235 clubs, 164 BJ’s Gas locations and seven distribution centers in 18 states. The company is No. 27 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America.