BJ’s Wholesale Club (NYSE:BJ) shares are fractionally lower in Thursday’s premarket trade as the company’s Q1 results left Wall Street underwhelmed despite a beat on both profit and revenue. With inflation subdued during the quarter, investors were already anticipating modest results. Coupled with unchanged guidance, the results did little to bolster the share price.
Shares were down 1.4%.
The wholesale retailer earned an adjusted profit of $0.85 per share, unchanged from a year ago and just 2 cents better than estimates. This was a result of $4.92B in revenue, 4.2% higher from a year ago on higher membership fees, and a surge in digital orders, beating the consensus estimate by $50M. Comparable sales were up 1.6%, beating estimates of 0.8% while comparable sales excluding gas increased 0.6% versus 0.52% estimates. On-line sales surged by 21% as the company expanded its availability of in-store pickup, curbside pickup, and deliveries.
“Our merchandising improvements and digital conveniences, grounded in delivering compelling value, are resonating with our members,” CEO Bob Eddy said.
For FY24 ending Feb. 1, 2025, the company kept guidance unchanged with same-store sales expected to increase by 1%-2% and adjusted EPS to be between $3.75 and $4.00, on the lower end of consensus estimates.
