Overview

* BJ's Q2 sales miss analyst expectations, adjusted EPS beats, per LSEG data

* Membership fee income rose 9% yr/yr, reaching $123.3 mln

* Company raises FY 2025 EPS guidance, reaches 8 mln members

Outlook

* BJ's expects FY 2025 adjusted EPS of $4.20 to $4.35

* Company anticipates FY 2025 comparable sales growth of 2.0% to 3.5%

* BJ's plans FY 2025 capital expenditures of about $800 mln

Result Drivers

* FUEL PRICE IMPACT - Comparable club sales decreased by 0.3% due to declining retail fuel prices

* MEMBERSHIP GROWTH - Membership fee income increased by 9% year-over-year, driven by higher membership acquisition and retention

* DIGITAL SALES - Digitally enabled comparable sales grew by 34%, reflecting strong online engagement

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $5.26 $5.48

bln bln (14

Analysts

)

Q2 Beat $1.14 $1.09

Adjusted (18

EPS Analysts

)

Q2 EPS $1.14

Q2 Net $150.70

Income mln

Q2 Beat $303.86 $286.30

Adjusted mln mln (10

EBITDA Analysts

)

Q2 $216.53

Operatin mln

g income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the discount stores peer group is "buy"

* Wall Street's median 12-month price target for BJ's Wholesale Club Holdings Inc is $128.50, about 17.4% above its August 21 closing price of $106.16

* The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)