BJ's Wholesale Club Holdings, Inc. has recently released its 10-Q report, providing a detailed look at the company's financial performance and operations. BJ's Wholesale Club operates membership warehouse clubs on the eastern half of the United States, offering groceries, fresh food, general merchandise, gasoline, and other ancillary services. The company's net sales for the third quarter of fiscal year 2025 were $5.2 billion, marking a 4.8% increase from the same period in fiscal year 2024. For the first nine months of fiscal year 2025, net sales were $15.5 billion, a 4.2% increase from the same period in fiscal year 2024.
Comparable club sales, a key performance indicator, increased by 1.1% for the third quarter of fiscal year 2025 and by 0.8% for the first nine months of fiscal year 2025. Membership fee income also saw a significant increase, reaching $126.3 million in the third quarter of fiscal year 2025, up from $115.0 million in the third quarter of fiscal year 2024, and $370.0 million in the first nine months of fiscal year 2025, up from $339.5 million in the first nine months of fiscal year 2024.
Cost of sales amounted to $4.3 billion, or 83.0% of net sales, in the third quarter of fiscal year 2025, compared to $4.1 billion, or 82.7% of net sales, in the third quarter of fiscal year 2024. Selling, general and administrative expenses (SG&A) increased by 7.4% to $788.2 million in the third quarter of fiscal year 2025 from $733.6 million in the third quarter of fiscal year 2024. Pre-opening expenses were $7.8 million in the third quarter of fiscal year 2025, down from $12.5 million in the third quarter of fiscal year 2024.
Interest expense, net, decreased to $10.3 million in the third quarter of fiscal year 2025 from $12.6 million in the third quarter of fiscal year 2024. The effective income tax rate was 26.9% for the third quarter of fiscal year 2025, down from 28.2% in the third quarter of fiscal year 2024.
BJ's Wholesale Club also provided non-GAAP financial measures, including adjusted net income and adjusted EBITDA. Adjusted net income for the third quarter of fiscal year 2025 was $153.1 million, while adjusted EBITDA was $301.4 million for the same period.
As of November 1, 2025, cash and cash equivalents totaled $45.1 million, with $989.5 million of unused capacity under the ABL Revolving Facility. The company 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. As a result of these announcements, the company's shares have moved 1.52% on the market, and are now trading at a price of $89.31. For more information, read the company's full 10-Q submission here.
