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MARLBOROUGH, Mass.—BJ's Wholesale Club reported sales gains and membership growth in its fiscal third quarter. The company, which reached 7.5 million members during the quarter, attributed its performance to a strong value proposition and effective execution.
For the third quarter ended November 2, BJ’s reported a 1.5% year-over-year increase in comparable club sales. Excluding gasoline sales, comparable club sales rose 3.8%, driven by higher traffic. Digitally enabled comparable sales growth surged 30%, contributing to a two-year stacked growth of 47%. Membership fee income climbed 8.4% to $115.0 million, reflecting gains in acquisition, retention, and penetration of higher-tier memberships. The company opened three new clubs and four gas stations during the period.
Earnings per diluted share for the quarter were $1.17, with adjusted earnings per share at $1.18. Gross profit increased to $975.5 million, up from $902.5 million in the same period the previous year. Merchandise gross margin, excluding gasoline and membership fees, rose 20 basis points, driven by cost management and long-term initiatives.
CEO Bob Eddy emphasized the importance of membership growth and operational focus, stating, "Our third quarter results demonstrate the combination of great value and strong execution. Our value proposition continues to resonate in new and existing markets."
The company also announced its first membership fee increase in seven years, effective January 1, 2025. Annual Club memberships will rise from $55 to $60, and Club+ memberships will increase from $110 to $120. As part of the enhanced benefits, Club+ members and BJ’s One+ Mastercard holders will receive two free same-day deliveries on eligible orders over $50 per year.
Over the first nine months of fiscal 2024, BJ’s total comparable club sales rose 2.0%, with a 2.3% increase excluding gasoline sales. Membership fee income grew to $339.5 million, up from $312.3 million in the prior year. Gross profit for the nine-month period reached $2.8 billion, an increase from $2.7 billion in 2023.
Operating expenses reflected investments in strategic priorities, including club openings and corporate restructuring. Selling, general, and administrative expenses rose to $733.6 million in the third quarter and $2.2 billion year-to-date. However, the increases were partially offset by legal settlements and disciplined cost controls.
Net income for the third quarter grew to $155.7 million, compared to $130.5 million in the prior year. Adjusted EBITDA improved by 13.5% to $308.3 million. The company’s share repurchase program, under which it bought back $58.2 million worth of stock in the quarter, will be replaced in January 2025 with a new $1 billion authorization extending through January 2029.
Looking ahead, BJ’s expects fourth-quarter comparable club sales, excluding gasoline, to grow 2.5% to 3.0%, contributing to full-year growth of 2.3% to 2.4%. Adjusted earnings per share for fiscal 2024 are projected between $3.90 and $4.00.
“We expect to drive long-term growth and shareholder value by maintaining our focus on strategic priorities,” executive vice president and CFO Laura Felice said.
