BJ's Wholesale Club Holdings, Inc. has recently released its 10-Q report, revealing some key insights into the company's financial performance and operations. The company operates membership warehouse clubs primarily on the eastern half of the United States, offering groceries, fresh food, general merchandise, gasoline, and other ancillary services through its clubs, website, and mobile app.
In the second quarter of fiscal year 2025, BJ's reported net sales of $5.3 billion, marking a 3.2% increase from the same period in fiscal year 2024. For the first six months of fiscal year 2025, net sales amounted to $10.3 billion, representing a 3.9% increase from the first six months of fiscal year 2024. The growth was attributed to increased traffic and unit growth, particularly in the perishables, grocery, and sundries division, as well as a net increase of 11 clubs from the prior year period, partially offset by a decrease in the average retail price-per-gallon of gasoline.
Comparable club sales, a key performance indicator, decreased by 0.3% in the second quarter but increased by 0.6% in the first six months of fiscal year 2025. Merchandise comparable club sales increased by 2.3% and 3.1% in the second quarter and the first six months of fiscal year 2025, respectively, driven by increased sales in the perishables, grocery, and sundries division, partially offset by a decline in sales of general merchandise and services.
Membership fee income also saw growth, reaching $123.3 million in the second quarter of fiscal year 2025, a 9.0% increase from the same period in fiscal year 2024. For the first six months of fiscal year 2025, membership fee income amounted to $243.7 million, an 8.6% increase from the first six months of fiscal year 2024, primarily driven by strength in membership acquisition, retention, and higher-tier membership penetration across both new and existing clubs.
Cost of sales, which consists primarily of the direct cost of merchandise and gasoline sold at BJ's clubs, was $4.4 billion in the second quarter of fiscal year 2025, representing 83.2% of net sales. In the first six months of fiscal year 2025, cost of sales amounted to $8.6 billion, or 83.2% of net sales. The merchandise gross margin rate, excluding gasoline sales and membership fee income, increased by 10 basis points compared to the prior year period.
Selling, general, and administrative expenses (SG&A) increased by 4.8% to $786.4 million in the second quarter of fiscal year 2025 from the same period in fiscal year 2024. For the first six months of fiscal year 2025, SG&A increased by 5.1% to $1.55 billion from the first six months of fiscal year 2024, primarily due to increased labor and occupancy costs as a result of new club and gas station openings.
BJ's also reported adjusted net income of $151.5 million and $302.3 million for the second quarter and the first six months of fiscal year 2025, respectively, representing an important measure used by management to compare the performance of core operating results between periods.
The company's liquidity and capital resources appear solid, with cash and cash equivalents totaling $47.3 million as of August 2, 2025, and $1.0 billion of unused capacity under its ABL Revolving Facility. BJ's believes that its current resources, together with anticipated cash flows from operations and borrowing capacity, will be sufficient to finance its operations for at least the next twelve months.
Following these announcements, the company's shares moved -0.39%, and are now trading at a price of $96.79. For more information, read the company's full 10-Q submission here.
