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BJ’s Profits Up, Comps Flat for Q3

Club retailer sees gains in digital sales, traffic during reporting period
Emily Crowe, Progressive Grocer
BJ's is expecting to maintain the momentum of its traffic and market share gains for the rest of the fiscal year.

Following a second quarter punctuated by multiple pains and gains, BJ’s Wholesale Club has shared strong Q3 earnings led by growth in digital sales, membership and traffic. While the retailer saw relatively flat total comparable club sales for the quarter, digitally enabled comparable sales grew 16% year-over-year (YoY) and membership fee income increased by 6.6% to $106.1 million.

Gross profit increased to $902.5 million in Q3, up from $877.1 million in Q3 of fiscal 2022, and net income rose to $130.5 million compared to $129.9 million (YoY). Also during the quarter, adjusted EBITDA increased 1% to $274.9 million and income from continuing operations before income taxes increased to $181.4 million.

“Our advantaged model and strong value proposition continue to resonate with our members. During the third quarter, we posted accelerating membership growth, robust traffic gains and continued increases in market share. These gains continue to reinforce the underlying strength of our business and we remain confident in the long-term growth prospects of our Company,” said Bob Eddy, chairman and CEO of BJ’s. “I am proud of our team members for their continued dedication to our members during these dynamic times.”

During Q3, BJ’s opened the membership center for its first Alabama location, which opened Nov. 10 and marks the retailer’s entrance into its 20th state. BJ’s also announced that its third location in Tennessee will open in the town of Goodlettsville in early 2024.

“As we look ahead to the rest of the year, we remain confident in our ability to maintain the momentum in our traffic and market share gains due to our unrelenting focus on value. We also continue to navigate shifts in consumer behavior driven by the broader macroeconomic environment. As a result, we are refining our sales outlook for the rest of the year,” said Laura Felice, EVP, CFO. 

According to Felice, the club retailer expects comparable club sales, excluding the impact of gasoline sales, to range from a 2% decrease to 1% increase YoY in Q4 of fiscal 2023, and to increase by 1% to 1.8% YoY for the full year fiscal 2023. The company’s outlook on fiscal 2023 GAAP and adjusted EPS remains unchanged in the $3.80 to $3.92 range.

Marlborough, Mass.-based BJ’s currently operates 239 clubs and 169 BJ’s Gas locations in 20 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.

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