12:48 PM EST, 03/07/2024 (MT Newswires) -- BJ's Wholesale Club Holdings (BJ) reported mixed fiscal fourth-quarter results Thursday, with revenue and per-share earnings both rising but sales missing market expectations while projecting comparable club-sales expansion in the ongoing year.

Revenue rose to $5.36 billion for the three months ended Feb. 3 compared with $4.93 billion the year earlier but missed the average analyst estimate of $5.4 billion on Capital IQ. Adjusted earnings per share inclined to $1.11 from $1 year over year, beating the Street's view of $1.06. Shares of BJ's climbed 6.7% in midday trade.

Comparable club sales, excluding gas, increased by 0.5% amid accelerating traffic, with traffic contributing about three percentage points to comparable sales, Chief Executive Bob Eddy told analysts on a conference call, according to a Capital IQ transcript. Total comparable sales decreased by 0.4%.

"We ended fiscal 2023 on a strong note," Eddy said in a statement. "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."

Membership fee income accelerated 6.5% to $108.4 million. Merchandise gross margins, which exclude gasoline sales and membership fees, fell by 40 basis points.

For 2024, the wholesaler expects comparable club sales excluding gas to rise 1% to 2% year over year, compared with the increase of 1.7% it achieved in fiscal 2023. BJ's is guiding adjusted EPS in the $3.75 to $4 range, compared with the $3.96 it reported for 2023. The consensus is for total revenue of $20.47 billion and normalized EPS of $3.99 in the ongoing year.

"As we look to fiscal 2024, we continue to navigate macro-driven uncertainty in the operating environment," Chief Financial Officer Laura Felice said. "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."

Merchandise gross margins are projected to be up roughly 20 basis points this year. In 2023, merchandise margins expanded 50 basis points over fiscal 2022 amid moderated supply chain costs and improved inventory management, the company said.

Price: 77.00, Change: +4.85, Percent Change: +6.72