BJ’s Wholesale Club tops Q2 expectations, raises earnings outlook

MARLBOROUGH, Mass. — BJ’s Wholesale Club reported strong second-quarter fiscal 2026 results, driven by higher sales, growing membership income and continued customer demand for value. The warehouse club operator exceeded its expectations on both revenue and profitability and raised its full-year adjusted earnings guidance.

“We delivered a strong second quarter, coming in ahead of our expectations across sales and profitability, with strong membership momentum,” chairman and CEO Bob Eddy said. “Our value proposition continued to resonate with members in our clubs and at our gas stations.”

For the quarter ended Aug. 1, total comparable club sales increased 11.9% year over year. Excluding gasoline sales, comparable club sales rose 3.1%. For the first six months of fiscal 2026, total comparable sales grew 9.2%, while comparable sales excluding fuel increased 2.3%.

Membership fee income continued to be a key growth driver. Quarterly membership fee income climbed to $135.6 million from $123.3 million a year earlier, while first-half membership fee income rose to $268 million from $243.7 million. The gains were fueled by membership acquisition, strong renewal rates and growth in higher-tier memberships.

Gross profit increased to $1.11 billion in the second quarter from $1.01 billion a year ago. For the first half, gross profit reached $2.14 billion, up from $1.98 billion. Merchandise gross margin declined modestly as the company continued investing in pricing to strengthen its value positioning, partially offset by tariff refund benefits.

Selling, general and administrative expenses increased to $851.2 million during the quarter, compared with $786.4 million last year, reflecting higher labor, occupancy and operating costs tied to new club and gas station openings. Additional depreciation from a larger portfolio of owned clubs also contributed to the increase.

Net income rose 15.4% to $173.9 million in the quarter, while first-half net income increased to $316.6 million from $300.5 million. Adjusted EBITDA climbed 14.3% to $347.2 million, and first-half adjusted EBITDA grew 9.4% to $645.3 million.

BJ’s also continued returning capital to shareholders. During the quarter, the company repurchased 1.38 million shares for $124.1 million. In the first half of the year, it bought back 3.5 million shares totaling $330.7 million, leaving approximately $422.1 million available under its repurchase authorization.

Chief Financial Officer Laura Felice said strong execution, membership growth and gas station performance supported the company’s decision to raise its earnings outlook.

For fiscal 2026, BJ’s now expects comparable club sales excluding gasoline to increase 2% to 3% year over year and projects adjusted earnings per share of $4.60 to $4.80. The company also plans capital expenditures of about $800 million to support new club openings and distribution network improvements, including investments in its ambient distribution center.

The retailer said it remains focused on long-term growth through club expansion, operational investments and initiatives that strengthen its value proposition for members.