BJ's Wholesale Club Stock Slides Post Q3 Results; Warns On Continued Merchandise Margin Pressure

BJ's Wholesale Club Stock Slides Post Q3 Results; Warns On Continued Merchandise Margin Pressure
  • BJ's Wholesale Club Holdings Inc BJ reported third-quarter FY22 sales growth of 12.3% year-on-year to $4.79 billion, beating the consensus of $4.69 billion.
  • Total comparable club sales increased by 9.7%. Comparable club sales, excluding gasoline sales, increased by 5.3%.
  • Membership fee income increased by 8.7% to $99.5 million.
  • Gross profit rose 10.9% Y/Y to $877.1 million with a margin of 18.3%.
  • Merchandise gross margin rate, which excludes gasoline sales and membership fee income, decreased by 30 basis points Y/Y.
  • The operating margin was 4%, and operating income for the quarter rose 12.8% to $191.9 million.
  • Adjusted EBITDA of $272.3 million increased 19.2% Y/Y.
  • Adjusted EPS of $0.99 beat the analyst consensus of $0.81.
  • BJ's Wholesale Club held $34.6 million in cash and equivalents as of October 29, 2022.
  • Cash provided by operating activities for the nine months totaled $616.1 million.
  • Outlook: BJ's Wholesale raised its FY22 EPS guidance to $3.70 - $3.80 from the previous estimate of $3.50 - $3.60 versus an estimate of $3.61.
  • BJ expects FY22 comparable club sales growth, excluding the impact of gasoline sales, to be in the 5%-5.5% (prior 4%-5%) range.
  • BJ expects continued merchandise margin rate pressure.
  • Price Action: BJ shares traded lower by 6.11% at $73.57 on the last check Thursday.
  • Photo Via Company

Posted In: Briefswhy it's movingEarningsNewsGuidanceMoversTrading IdeasGeneral