10:23 AM EDT, 08/22/2025 (MT Newswires) -- BJ's Wholesale Club (BJ) lifted its full-year earnings outlook on Friday even though the company's fiscal second-quarter revenue and comparable club sales fell short of market estimates.

The warehouse club operator now expects adjusted earnings to come in between $4.20 and $4.35 per share for fiscal 2025, up from its previous guidance of $4.10 to $4.30. The current consensus on FactSet is for $4.30.

BJ's continues to project comparable club sales growth, excluding the impact of gasoline sales, of 2% to 3.5% for the ongoing fiscal year. The Street is looking for a same-store sales gain of 2.9%.

"We are pleased with the performance of business year to date and are confident in the outlook for the back half," Chief Financial Officer Laura Felice said in a statement. "We continue to see a top line range aligned with our previous outlook, but we are narrowing and increasing our range on the bottom line."

The macroeconomic environment remains uncertain and volatile, with the company expecting these challenges to influence costs and consumer spending behavior, Felice said during an earnings call, according to a FactSet transcript. However, the group remains confident in its underlying strength and ability to deliver sustained growth, Felice added.

Earlier in the week, fellow discount retailer TJX (TJX) raised its fiscal 2026 earnings outlook and reiterated confidence in its ability to offset tariff-related headwinds. Retail giant Walmart (WMT) also lifted its full-year expectations, while Target (TGT) maintained a cautious approach amid the tariff landscape and affirmed its fiscal 2025 guidance.

BJ's adjusted EPS came in at $1.14 a share for the quarter ended Aug. 2, up from $1.09 the year before, which was the average analyst estimate on FactSet. Overall revenue improved 3.4% to $5.38 billion, but trailed the Street's view for $5.49 billion. The stock dropped 7.7% in Friday trade.

Comparable club sales, excluding gasoline, inclined 2.3% led by traffic growth, but missed the 3.2% increase modeled by the market. General merchandise and services comparable sales decreased 2.2% in the quarter, "with general merchandise driving the decline in services about flat for the period," Felice said on the call.

Membership fee income advanced 9% to $123.3 million, amid "strong membership acquisition and retention across the chain," according to Felice. Merchandise gross margin rate, excluding gasoline sales and membership fee income, rose by 10 basis points on an annual basis, driven by "disciplined cost management and continued execution of our long term initiatives," Felice told analysts.

"These results were solid in the face of market environment, influenced by both macro uncertainty as well as the unseasonably wet and cold weather to start the quarter, especially in our core northeast and Mid-Atlantic markets," Chief Executive Bob Eddy said on the call. "We saw our business accelerate as the weather improved."

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