BJ's Wholesale Club's shares soared intraday Thursday after its fourth-quarter results topped analysts' expectations, and the warehouse club operator expressed a 'cautiously optimistic' outlook amidst ongoing macroeconomic uncertainties. Adjusted per-share earnings declined to $0.93 in the three months ended February 1, down from $1.11 a year earlier, but this exceeded the FactSet-poll consensus estimate of $0.88.
Chief Executive Bob Eddy noted, 'Our terrific fourth-quarter performance contributed to a record year at BJ's, powered by all-time high membership results.' The total revenue for the quarter experienced a slight decline of 1.5%, settling at $5.28 billion, yet it narrowly surpassed analysts' expectations, who estimated $5.27 billion.
On a yearly basis, revenue showed a growth of 2.7%. In terms of comparable sales, the figures increased by 4% in the fourth quarter and by 2.5% across fiscal 2024. Following the announcement, BJ's shares saw an impressive surge of 13% during Thursday's trading session. CFO Laura Felice addressed analysts, stating, 'Our business, like the broader industry, continues to face economic and geopolitical uncertainty and unpredictability in conditions that influence costs.' Despite these challenges facing consumers and operators alike, she reassured that the company remains confident in its growth drivers within their control, allowing for a cautiously optimistic outlook for the year. Felice highlighted that BJ's is in a better position than most retailers to navigate the pervasive uncertainty surrounding tariffs.
Eddy also spoke during the call, indicating that tariffs are expected to result in increased prices and potentially cause 'some supply chain disruption.' Eddy added, 'Periods of rising prices and supply chain disruption have often been beneficial for our company. When consumer wallets are strained, those consumers actively seek value.' Looking ahead to the year ending January 2026, BJ's anticipates adjusted EPS ranging between $4.10 and $4.30, while analysts project $4.28.
The company also expects comparable club sales, excluding gasoline, to see a year-over-year increase of 2% to 3.5%. Current share price stands at 113.12, with a change of +13.03, equating to a percent change of +13.02..