Earnings Results: BJ’s Wholesale’s stock falls as lower inflation leads to same-store sales miss

by | Nov 17, 2023 | Stock Market

Shares of BJ’s Wholesale Club Holdings Inc. took a dive Friday, after the membership-based warehouse retailer reported a surprise dip in fiscal third-quarter same-store sales and cut its full-year outlook, citing “shifts in consumer behavior” driven by the broader economic environment. The miss in same-store sales, or sales from stores open more than a year, offset profit and revenue that beat expectations, which were fueled by “accelerating membership growth, robust traffic gains and continued increases in market share.”

The stock
sank 3.9% in afternoon trading, toward a three-month closing low. Net income for the quarter to Oct. 28 rose to $130.5 million, or 97 cents a share, from $129.9 million, or 95 cents a share, in the same period a year ago. Excluding nonrecurring items, adjusted earnings per share slipped to 98 cents from 99 cents but beat the FactSet consensus of 95 cents. Total revenue grew 2.9% to $4.925 billion, to top the FactSet consensus of $4.899, as sales increased 2.8% to $4.82 billion and membership fee income rose 6.6% to $106.1 million. Meanwhile, same-store sales excluding gasoline sales declined 0.1%, while the FactSet consensus called for a 1.0% rise …

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