Why Are BJ's Wholesale Club Shares Trading Lower Today

Why Are BJ's Wholesale Club Shares Trading Lower Today
  • BJ's Wholesale Club Holdings Inc BJ reported fourth-quarter FY21 sales growth of 10.4% year-on-year, to $4.36 billion, missing the consensus of $4.38 billion.
  • Comparable sales increased by 8.8%, reflecting two-year stacked comp of 21.8%.
  • Comparable club sales, excluding gasoline sales, increased by 0.9%, reflecting two-year stacked comp of 16.8%.
  • Digitally-enabled sales grew 19%, reflecting two-year stacked comp growth of 187%.
  • Gross profit rose 7.4% Y/Y to $797.2 million with a margin of 18.3%. The operating margin was 3.6%, and operating income for the quarter rose 8.6% to $157.1 million.
  • BJ's Wholesale Club held $45.4 million in cash and equivalents as of January 29, 2022. Cash provided by operating activities for the quarter totaled $98.5 million.
  • Adjusted EBITDA of $228.6 million increased 11.8% Y/Y.
  • Adjusted EPS of $0.80 beat the consensus of $0.74.
  • Outlook: BJ expects FY22 net sales to increase in the mid-single-digit range. It expects EPS to remain flat Y/Y after giving effect to the pending Burris acquisition of assets.
  • "As an offset on the top line, we're experiencing some of the highest levels of inflation that we've seen in several decades," said CFO Laura Felice.
  • Price Action: BJ shares are trading lower by 13.5% at $56.99 in premarket on the last check Thursday.
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