Shares of BJ's Wholesale Club (NYSE:BJ) fell 3.4% in early trading on Thursday after the retailer reported fourth-quarter results that beat expectations but issued full-year earnings guidance below Street forecasts.
For the quarter ended in February, BJ’s posted adjusted earnings per share of $0.96, topping Wall Street estimates, while comparable club sales excluding fuel rose 2.6%, modestly above consensus.
Membership fee income jumped 10.9% year-over-year to $129.8 million, reflecting strong acquisition, retention, and higher-tier penetration.
Operating income was largely flat from a year earlier, as merchandise gross margins declined about 50 basis points due to product mix, and SG&A costs increased with labor, occupancy, and new club expenses.
Digital sales remained a bright spot, with digitally enabled comps up 31% and traffic growth extending for a 16th consecutive quarter.
Looking ahead, BJ’s expects fiscal 2026 comparable sales growth (ex-gas) of 2 to 3%, broadly in line with expectations, but guided adjusted EPS of $4.40–$4.60, below the Street consensus of $4.66. The company plans capital expenditures of roughly $800 million for new club openings and distribution investments, including its ambient distribution center, signaling confidence in long-term growth.
Jefferies analysts highlighted the contrast between strong Q4 execution and a cautious outlook. “BJ’s delivered a solid Q4, with comps and EPS modestly ahead, driven by continued membership income growth, strong traffic, and robust digital engagement, partially offset by margin pressure from mix and higher costs,” the firm wrote, noting that FY’26 EPS guidance fell short as investments weigh on profitability.
Jefferies maintained a Hold rating on the stock.