BJ’s Wholesale Club Holdings, Inc. shares are trading higher in the premarket session on Thursday after the company reported first-quarter results.

The company registered adjusted earnings per share of $1.14, beating the analyst consensus estimate of 92 cents. Quarterly revenues of $5.15 billion (+4.7% year over year) missed the Street view of $5.20 billion.

Comparable club sales rose 1.6% from the previous year. Excluding gasoline, sales grew 3.9%, driven by higher customer traffic.

Operating income in the quarter under review jumped 26.7% year over year to $203.645 million.

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Adjusted EBITDA increased 20.9% to $285.836 million in the first quarter.

Gross profit increased to $969.5 million in the first quarter from $883.4 million in the year-ago period.

Merchandise gross margin rate, which excludes gasoline sales and membership fee income, increased by 30 basis points.

Under its existing share repurchase program, BJ’s Wholesale repurchased 55,000 shares of common stock, totaling $6.2 million.

The company exited the quarter with cash and equivalents worth $39.484 million and merchandise inventories worth $1.567 billion.

BJ’s Wholesale Club reported long-term debt of $398.88 million at the end of the first quarter, which is slightly higher than $398.509 million in the year-ago period.

Outlook: BJ’s Wholesale Club has reaffirmed its full-year 2025 adjusted earnings guidance of $4.10 to $4.30 per share, compared with the $4.24 estimate.

It expects comparable club sales (excluding gasoline) to grow 2.0% to 3.5% this year. The company plans to spend around $800 million on capital expenditures.

Price Action: BJ shares are trading higher by 2.1% to $120.00 at last check Thursday.

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