BJ's Wholesale Club Reports Strong Q1 Results

BJ's Wholesale Club Holdings, Inc. has reported its first quarter fiscal 2024 results, highlighting robust growth in membership, traffic, and unit volumes. The company's comparable club sales increased by 1.6% year-over-year, with digitally enabled comparable sales growing by 21.0% year-over-year. Membership fee income also saw a significant 8.6% increase to $111.4 million.

Total net sales for the first quarter of fiscal 2024 reached $4,807,129 thousand, marking a 4.0% increase from the same period in fiscal 2023, while membership fee income and total revenues also experienced growth of 8.6% and 4.1% respectively.

However, the company reported a decrease in certain metrics when compared to the first quarter of fiscal 2023. Operating income decreased by 13.9%, adjusted EBITDA dropped by 6.0%, and net income and adjusted net income both declined by 4.4% and 1.9% respectively. Earnings per diluted share (EPS) also saw a decline of 2.4% year-over-year.

The first quarter of fiscal 2024 also saw an increase in selling, general, and administrative expenses (SG&A) to $721.8 million, up from $689.3 million in the first quarter of fiscal 2023. Income from continuing operations before income taxes decreased to $146.8 million, and income tax expense decreased to $35.8 million, primarily driven by higher tax benefits from stock-based compensation.

Looking ahead, the company remains confident in its ability to maintain strength in traffic, unit volumes, and market share for the rest of fiscal 2024. The company also repurchased 405,110 shares of common stock, totaling $30.2 million, under its existing share repurchase program in the first quarter of fiscal 2024.

BJ's Wholesale Club Holdings, Inc. operates 244 clubs and 176 BJ's Gas® locations in 20 states, providing a wide range of products and services to its members. Today the company's shares have moved 3.5% to a price of $83.31. If you want to know more, read the company's complete 8-K report here.

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