BJ's Wholesale Club (NYSE:BJ) shares moved over 4% higher on Friday after the warehouse retailer reported second-quarter fiscal 2026 earnings and revenue above analyst expectations, while raising its full-year adjusted earnings guidance.
The company reported earnings per diluted share of $1.36 for the 13 weeks ended Aug. 1, up from $1.14 a year earlier and ahead of the $1.17 analyst consensus.
Total revenues increased 15.7% to $6.23 billion, including $6.09 billion in net sales, compared with analyst expectations of roughly $5.94 billion to $5.97 billion.
Comparable club sales increased 11.9% year over year during the quarter, or 3.1% excluding gasoline sales. Digitally enabled comparable sales rose 30%, with two-year stacked growth reaching 64%.
Membership fee income increased 9.9% to $135.6 million, while total membership reached a record 8.5 million members. The company attributed the growth in membership income to strength in member acquisition and retention, along with higher-tier membership penetration across new and existing clubs.
Net income rose 15.4% to $173.9 million, while adjusted EBITDA increased 14.3% to $347.2 million. Gross profit rose to $1.11 billion from $1.01 billion a year earlier. The merchandise gross margin rate declined by about 20 basis points, primarily due to continued investments in pricing, partially offset by tariff refund benefits.
BJ’s opened three new clubs and one new gas station during the quarter. Selling, general and administrative expenses increased to $851.2 million from $786.4 million, primarily reflecting higher labor, occupancy and operating costs associated with new club and gas station openings.
“We delivered a strong second quarter, coming in ahead of our expectations across sales and profitability, with strong membership momentum,” BJ’s Wholesale CEO Bob Eddy said in a statement.
“Our value proposition continued to resonate with members in our clubs and at our gas stations, and the momentum we’re seeing across our strategic priorities gives us real confidence in the road ahead.”
For fiscal 2026, BJ’s maintained its comparable club sales outlook, excluding gasoline, for growth of 2% to 3%, while raising its adjusted EPS guidance to $4.60 to $4.80 from its previous outlook.
The company expects capital expenditures of approximately $800 million, reflecting continued investment in new club openings and its distribution network.