BJ's Wholesale Club (NYSE:BJ) Posts Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Q4 results beat expectations: BJ's reported $0.96 EPS vs. $0.93 consensus and $5.58B revenue (up ~5.6% YoY), and closed fiscal 2025 with record full‑year adjusted EPS of $4.40.
• Membership, digital and store growth: Memberships exceeded 8 million after adding ~500k this year with membership fee income up ~10.9%, digital sales penetration reached 16% (digital sales +31% in Q4), and the company opened a record 14 new clubs with plans for 25–30 openings across 2025–26.
• Management flagged near‑term profitability pressure—merchandise margin ex‑gas declined ~50 bps and SG&A will slightly deleverage to support expansion—and provided cautious FY2026 guidance of $4.40–$4.60 EPS, a release that saw the stock dip about 1.7%.

BJ's Wholesale Club (NYSE:BJ - Get Free Report) released its earnings results on Thursday. The company reported $0.96 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.93 by $0.03, FiscalAI reports. The company had revenue of $5.58 billion during the quarter, compared to the consensus estimate of $5.54 billion. BJ's Wholesale Club had a net margin of 2.72% and a return on equity of 28.66%. The company's revenue was up 5.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.93 EPS. BJ's Wholesale Club updated its FY 2026 guidance to 4.400-4.600 EPS.

Here are the key takeaways from BJ's Wholesale Club's conference call:

• BJ's closed fiscal 2025 with record full-year Adjusted EPS of $4.40 and Q4 Adjusted EPS of $0.96, with net sales up 5.5% and merchandise comps ex-gas +2.6%, driven by continued traffic and market-share gains.
• Membership momentum remains a core strength—over 8 million members after adding 500,000 this year, a 90% tenured renewal rate, 42% higher-tier penetration, and membership fee income up ~10.9%, supporting durable MFI growth.
• Accelerated store growth—opened 14 new clubs in 2025 (company record) with new-club performance above expectations, and remains on track to open 25–30 clubs across 2025–2026, including entry into Dallas–Fort Worth.
• Digital and technology investments are scaling—digitally enabled sales penetration reached 16%, digital sales grew 31% in Q4 with >90% of orders fulfilled from clubs, plus AI initiatives (Ask Bev) and a planned automated distribution center in Ohio (2027).
• Margin and expense pressures—merchandise margin (ex-gas) fell ~50 bps in Q4 due to a mix shift toward lower-margin general merchandise and intentional price/value investments, while SG&A will slightly deleverage for accelerated new-club openings and strategic investments; FY26 EPS guidance is $4.40–$4.60.

BJ's Wholesale Club Trading Down 1.7%

NYSE:BJ traded down $1.66 on Thursday, reaching $98.32. 2,723,265 shares of the stock traded hands, compared to its average volume of 1,905,299. The company has a current ratio of 0.79, a quick ratio of 0.16 and a debt-to-equity ratio of 0.18. BJ's Wholesale Club has a 1-year low of $86.68 and a 1-year high of $121.10. The company's 50 day moving average is $95.61 and its 200-day moving average is $94.49. The firm has a market capitalization of $12.86 billion, a price-to-earnings ratio of 22.65, a price-to-earnings-growth ratio of 2.58 and a beta of 0.36.

Analysts Set New Price Targets

BJ has been the topic of a number of research analyst reports. BTIG Research reaffirmed a "buy" rating and issued a $120.00 target price on shares of BJ's Wholesale Club in a report on Friday, November 21st. Jefferies Financial Group lowered shares of BJ's Wholesale Club from a "buy" rating to a "hold" rating and dropped their target price for the stock from $120.00 to $90.00 in a research report on Wednesday, January 28th. JPMorgan Chase & Co. upped their target price on shares of BJ's Wholesale Club from $90.00 to $94.00 and gave the company a "neutral" rating in a research note on Thursday, February 26th. Deutsche Bank Aktiengesellschaft assumed coverage on BJ's Wholesale Club in a research note on Thursday, January 8th. They issued a "hold" rating for the company. Finally, TD Cowen reissued a "buy" rating on shares of BJ's Wholesale Club in a report on Monday, November 24th. Nine investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $108.19.

BJ's Wholesale Club News Roundup

Here are the key news stories impacting BJ's Wholesale Club this week:

• Positive Sentiment: Q4 results beat expectations — adjusted EPS $0.96 (vs. ~$0.92 estimate) and revenue $5.58B, with revenue up ~5.6% YoY. The print confirms underlying growth and outperformance versus estimates. BJ's Wholesale Club Announces Fourth Quarter and Full Fiscal 2025 Results
• Positive Sentiment: Membership and digital momentum — membership fees grew double digits and digital sales rose strongly, while comp trends were positive (ex‑fuel comps up ~2.6%), supporting recurring revenue and margin leverage over time. BJ's Wholesale Club Holdings, Inc. Q4 2025 Earnings Call Summary
• Positive Sentiment: Capital return and balance sheet strength — management continues share repurchases and highlights low leverage and healthy cash flow, which underpins shareholder returns and supports valuation stability. BJ's Wholesale Club (Company Page / MarketBeat)
• Neutral Sentiment: FY‑2026 guidance provided a range of $4.40–$4.60 in EPS (midpoint ~$4.50); the range is near Street expectations but was described as cautious by some investors — guidance reduces uncertainty but leaves little obvious upside. BJ's Wholesale Club Announces Fourth Quarter and Full Fiscal 2025 Results
• Neutral Sentiment: Analyst takeaway is mixed — some outlets emphasize Q4 strength and cash generation while others flag tepid guidance; consensus ratings and price targets have been steady but commentary may limit near‑term upside. BJ's Wholesale Club (MarketBeat coverage)
• Negative Sentiment: Market reaction: some investors sold shares after management's FY guidance/forward commentary, citing guidance that some viewed as short of Street hopes — early session weakness reflects that positioning. BJ's Wholesale Club shares slip as EPS guidance falls short
• Negative Sentiment: Profitability caution — management warned margins could be pressured by new‑store openings and mix changes, which could weigh on near‑term earnings expansion. BJ's Wholesale Posts Higher Sales, Issues Cautious Profit Outlook (WSJ)

Insider Activity at BJ's Wholesale Club

In other news, EVP William C. Werner sold 7,000 shares of the stock in a transaction on Friday, December 5th. The shares were sold at an average price of $91.09, for a total transaction of $637,630.00. Following the completion of the sale, the executive vice president directly owned 50,498 shares in the company, valued at $4,599,862.82. This represents a 12.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Strive Financial Group LLC purchased a new position in shares of BJ's Wholesale Club during the fourth quarter valued at approximately $25,000. Parkside Financial Bank & Trust grew its stake in shares of BJ's Wholesale Club by 147.9% in the 4th quarter. Parkside Financial Bank & Trust now owns 290 shares of the company's stock worth $26,000 after acquiring an additional 173 shares in the last quarter. Sunbelt Securities Inc. purchased a new stake in shares of BJ's Wholesale Club in the third quarter valued at about $34,000. Los Angeles Capital Management LLC bought a new position in shares of BJ's Wholesale Club during the fourth quarter valued at about $51,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in BJ's Wholesale Club during the second quarter worth about $80,000. 98.60% of the stock is owned by institutional investors.

About BJ's Wholesale Club

BJ's Wholesale Club, headquartered in Westborough, Massachusetts, is a membership-based warehouse retailer offering a wide range of products and services primarily to small businesses and individual consumers. The company operates large-format clubs that provide value-priced groceries, health and beauty products, electronics, home goods, furniture, seasonal items and automotive supplies. In addition to its in-club offerings, BJ's features fuel stations at many locations and operates an e-commerce platform for online ordering and home delivery.

Founded in 1984 as a division of Zayre Corp., BJ's Wholesale Club quickly expanded throughout the Northeastern United States.