BJ’s Wholesale is up 10% on Thursday: this is why

BJ’s Wholesale Club Holdings Inc (NYSE: BJ) is up more than 10% in the stock market on Thursday after the retailer reported better-than-expected results for its fiscal first quarter.

BJ’s Q1 earnings snapshot

  • Net income printed at $112.5 million versus the year-ago figure of $81.6 million.
  • Per-share earnings of 82 cents were much better than 59 cents in Q1 of previous year.
  • Adjusted for one-time items, EPS stood at 87 cents in the recent financial quarter.
  • Revenue jumped 16.2% YoY to $4.50 billion, as per the earnings press release.
  • FactSet consensus was for 72 cents of adjusted EPS on $4.24 billion in revenue.
  • Total comparable sales excluding gasoline were up 4.1% versus 3.9% expected.

Other notable figures include an 18% year-over-year increase in cost of sales that contracted the gross margin from 18.8% to 17.6% in the fiscal first quarter. BJ’s reached 6.5 million members in Q1.

Future outlook and CEO’s remarks

The membership-based warehouse retailer also reiterated on Thursday that it expects EPS in 2022 to remain roughly unchanged from last year. In the earnings press release, CEO Bob Eddy said:

Q1 gains in member traffic underscore the value we provide. Our business model is more relevant than ever in the current inflationary environment. We continued to build on the transformational gains and our digital business remains a key competitive advantage.

Earlier this year, BJ’s bought four perishable goods distribution centres that, it says, will drive future growth and create long-term shareholder value. The stock is still down 10% for the year.

The post BJ’s Wholesale is up 10% on Thursday: this is why appeared first on Invezz.

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