BJ's Q4 brings 'record' gains for the wholesale club

It was a record quarter for BJ’s Wholesale Club as shoppers increasingly are hunting for value amid high inflation.

For the fourth quarter ended Jan. 28, BJ's reported same-store sales growth of 9.8% over the prior year, while the retailer achieved an all-time high member renewal rate, the company said Thursday during its annual investor day.

BJ’s reported year-to-date income from continuing operations of $514.3 million and year-to-date adjusted EBITDA of $1.0 billion. Net sales for the fourth quarter were up 13%, to $4.8 billion.

“2022 was a record year, having surpassed $1 billion in adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] for the first time in the company’s history,” said President and CEO Bob Eddy in a statement.

BJ’s reported membership fee income increased by 8% year over year, to $101.8 million.

“Our membership base is stronger than ever with our tenured renewal rate reaching an all-time high of 90%,” Eddy said. “Our continued focus on value has driven traffic and market share gains all year.”

Looking to enhance targeted messages to its members, BJ’s said digital sales surged 22% over the previous year. 

“Our digital business is growing and we’re successfully expanding our footprint,” Eddy said. “The investments we continue to make in our company position us well for long-term growth and sustainable value creation.”

Other fiscal highlights for the fourth quarter include earnings per diluted share of 95 cents, reflecting a 21.8% year-over-year increase and adjusted earnings per diluted share of $1.00, reflecting a 25% year-over-year increase, the company reported. 

Looking ahead, BJ's said it expects same-club sales, excluding gasoline sales, to increase 4% to 5% year over year and membership fee income to increase 5% to 6% year over year.

“We remain confident that our advantaged business model, continued focus on executing our strategic priorities and commitment to delivering great value to our members will continue to drive strong results for our business,” said Laura Felice, EV and CFO, in a statement. “We look ahead to fiscal 2023 with the understanding that there is still significant uncertainty in the macroeconomic backdrop as well as its influence on the U.S. consumer.”

BJ’s reported continued market expansion in the Midwest and is looking at 11 to 12 club openings in fiscal year 2023, including entrance into its 19th and 20th states of Tennessee and Alabama.

With a focus on value, the Marlborough, Massachusetts-based wholesale club operates over 230 stores across 18 states.