BJ’s Credits Membership, Traffic, Market Share Growth for Strong Q4, FY23
Following a third quarter that brought lower comparable sales but higher profits, BJ’s Wholesale Club is sharing strong Q4 and fiscal year 2023 results, mostly driven by increases in comps, membership fee income and digitally enabled comparable sales growth.
Digging into the specifics for Q4 of FY23, BJ’s saw year-over-year comparable club sales, excluding gasoline sales, increase by 0.5%, led by accelerating traffic, while digitally enabled comparable sales growth was 28%. Membership fee income increased by 6.5% to $108.4 million, and the company achieved a 90% tenured member renewal rate during FY23.
Earnings per diluted share of $1.08 reflects a 13.7% year-over-year increase, and an adjusted EPS of $1.11 reflects a 11.0% year-over-year increase. BJ’s also saw income from continuing operations of $145.9 million and adjusted EBITDA of $290.7 million.
According to Placer.ai, year-over-year foot traffic at BJ’s increased 3.5% during Q4.
“We ended fiscal 2023 on a strong note,” said Bob Eddy, chairman and CEO. “Our membership grew in robust fashion and we continue to retain members at all-time high rates. We delivered impressive market share gains in our clubs and at our gas pumps, driven by acceleration in traffic and growth in units sold.”
Continued Eddy: “We improved our merchandising and value proposition meaningfully during the year and increasingly delivered both with greater convenience through our digital offerings. We also continued to grow our chain with six new clubs since the third quarter. I’m proud of our team and our progress and look forward to more growth in the future.”
BJ’s has opened six new clubs and six new gas stations since Q3.
For the full FY23, year-over-year comparable club sales decreased by 1%, and when excluding the impact of gasoline sales, comparable club sales increased by 1.7%. Net income increased to $523.7 million compared to $513.2 million in FY22, and adjusted EBITDA increased by 7.2% to $1.08 billion.
“As we look to fiscal 2024, we continue to navigate macro-driven uncertainty in the operating environment,” said Laura Felice, EVP and CFO. “We remain confident that our structural operating advantages, continued focus on executing our strategic priorities, and commitment to delivering great value to our members will drive strong results for our business.”
Guidance for FY24 includes increased comparable club sales, excluding the impact of gasoline sales, of 1% to 2% year-over-year, improved merchandise gross margins of approximately 20 basis points year-over-year, and an adjusted EPS in the range of $3.75 to $4.00. BJ’s expects capital expenditures of approximately $500 million.
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.
