11:18 AM EDT, 05/23/2024 (MT Newswires) -- BJ's Wholesale Club (BJ) reported stronger-than-expected fiscal first-quarter results on Thursday as comparable sales and membership fees climbed, while the warehouse club operator affirmed its full-year outlook.

Revenue rose to $4.92 billion for the three months ended May 4 from $4.72 billion a year ago and surpassed the $4.87 billion average analyst estimate on Capital IQ. Adjusted earnings per share was flat at $0.85 year over year, beating Wall Street's $0.83 view. Shares of BJ's gained 2.5% in Thursday trade.

Comparable club sales rose 1.6% from the same period a year ago. Excluding gasoline, comparable sales edged up 0.6%, led by strong traffic and unit growth, according to BJ's. The consensus was for 0.3% growth. Net sales increased 4% to $4.81 billion while membership fee revenue advanced 8.6% to $111.4 million.

"During the first quarter, we delivered strong increases in membership, traffic and unit volumes," driving revenue growth and market share gains, Chief Executive Bob Eddy said in a statement. On an earnings call with analysts, Eddy said traffic gains contributed three percentage points in the quarter, similar to the fiscal 2023 fourth quarter, according to a Capital IQ transcript.

Merchandise gross margins, which exclude gasoline sales and membership fee income, decreased by 50 basis points in the first quarter compared with the same period of fiscal 2023, due primarily to lower ancillary income. "Our general merchandise business delivered a slightly negative comp in the first quarter as a handful of weather-sensitive categories weighed on the overall division," Eddy told analysts.

The wholesaler reiterated its full-year guidance for comparable club sales excluding gas to rise 1% to 2% on an annual basis and adjusted EPS to reach $3.75 to $4 range. The Capital IQ consensus is for comparable sales growth of 1.5% and normalized EPS of $3.92.

BJ's in March projected merchandise gross margins to expand by roughly 20 basis points in the ongoing year. Members remain selective and value focused but that "bodes well" for the BJ's business model, Eddy said on the call.

"As we look ahead to the rest of the year, we remain confident in our ability to maintain our strength in traffic, unit volumes and market share led by our continued focus on delivering value to our members and executing on our strategic priorities," Chief Financial Officer Laura Felice said in a statement.

Price: 83.01, Change: +2.52, Percent Change: +3.13