Traffic boost fuels record Q1 for BJ's Wholesale

It was another record quarter for BJ’s Wholesale Club, as shoppers continue to seek value in grocery.

For the first quarter ended April 29, BJ's reported same-store sales growth of 5.7% over the prior year, while the membership-based warehouse retailer again achieved high member renewal rate, the club-based retailer said Tuesday in reporting its first-quarter earnings.

Membership fee income for the first quarter increased by 6.1% year-over-year to $102.5 million. Digitally enabled comparable sales growth was 19.0% year-over-year.

BJ’s reported income from continuing operations increased by 3.1% year-over-year to $116.0 million and adjusted EBITDA increased by 16.4% year-over-year to $257.0 million.

"Our fiscal 2023 outlook on our business remains unchanged given the sustained strength in our grocery business and our gains in market share,” said said Laura Felice, EV and CFO, in a statement.

With a focus on value, the Marlborough, Massachusetts-based wholesale club reported two new club openings as well as three new gas stations during the first quarter.

“We reported a record first quarter in net income and adjusted EBITDA, demonstrating the power of our business model and the warehouse club channel,” said President and CEO Bob Eddy in a statement.

BJ’s reported net income increased to $116.1 million in the first quarter of fiscal 2023 compared to $112.5 million in the first quarter of fiscal 2022.

“We drove topline growth bolstered by robust traffic and share gains,” Eddy added. “We also made significant improvements on our merchandise margins largely due to waning supply chain pressures and moderating inflation. We remain focused on our strategic priorities and believe that we are well-positioned to maximize long-term shareholder value.”