BJ’s Wholesale Club Holdings, Inc. shares are trading lower in the premarket session on Friday, after the company reported second-quarter results.

The firm reported second-quarter adjusted earnings per share of $1.14, beating the analyst consensus estimate of $1.09.

Comparable club sales fell 0.3% year-over-year, driven by lower retail fuel prices. Excluding gasoline, comparable club sales rose 2.3%, supported by increased traffic.

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Quarterly sales of $5.38 billion (+3.4% year over year) missed the Street view of $5.48 billion.

Membership fee income rose 9% year-over-year to $123.3 million, as total members reached a record 8 million.

Digitally enabled comparable sales grew 34%, highlighting strong momentum. On a two-year stacked basis, sales rose by 56%.

“We enter the back half of the year on solid footing and confident in our ability to deliver strong results,” said Bob Eddy, Chairman and CEO, BJ’s Wholesale Club. “We are on a powerful trajectory and our teams remain steadfast towards executing on our long-term objectives.”

The company reported quarterly adjusted EBITDA of $303.861 million, up 8% year over year.

Quarterly gross profit increased to $1.01 billion from $956.6 million in the year-ago period. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, increased by 10 basis points.

The company exited the quarter with cash and equivalents worth $47.273 million, higher than $38.058 million in the year-ago period.

Merchandise inventories at the end of the quarter was $1.520 billion.

Outlook

BJ’s Wholesale Club Holdings raised its fiscal year 2025 adjusted EPS guidance to $4.20–$4.35 from the prior $4.10–$4.30 range.

The new outlook compares with the Street estimate of $4.31.

For fiscal year 2025, comparable club sales, excluding the impact of gasoline sales, are expected to increase 2.0% to 3.5% year-over-year.

Price Action: BJ shares are trading lower by 2.98% to $103.0 premarket at last check Friday.

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