BJ’s Wholesale Club remains on track for a solid fiscal year as the retailer beat 2024 first-quarter expectations.
The warehouse retailer’s stock price was up over 2.5% following the news on Thursday morning.
Comparable club sales increased 1.6% year over year, and comparable club sales, excluding gas, were up 0.6%, led by strong traffic and unit growth. Net sales were over $4.8 billion in quarter one, marking a 4% increase vs. Q1 2023.
Digital comparable sales growth went up 21% year over year while membership fee income saw an increase of 8.6% to $111.4 million.
“During the first quarter, we delivered strong increases in membership, traffic, and unit volumes,” said Bob Eddy, chairman and CEO of BJ’s Wholesale Club. “This resulted in revenue growth and market share gains in our clubs and at our gas stations.”
Eddy also said the retailer is looking to open 12 new locations this year.
In late March, BJ’s Wholesale Club, based in Marlborough, Mass., announced the opening of five locations — two in Florida and one in Tennessee, South Carolina, and Indiana.
Gross profit increased slightly year over year — $883.4 million vs. $880 million in Q1 2023 — but net income was down in the first quarter — $111 million vs. $116.1 million in Q1 2023.
Adjusted EBITDA dropped to $236.4 million compared to $251.5 million a year ago.
“As we look ahead to the rest of the year, we remain confident in our ability to maintain our strength in traffic, unit volumes, and market share, led by our continued focus on delivering value to our members and executing on our strategic priorities,” said Laura Felice, executive vice president and CFO of BJ’s Wholesale Club.
Felice added that the retailer’s forecast for the rest of the year remains unchanged.
