Executive Summary
In the second quarter of fiscal 2024, BJ's Wholesale Club Holdings Inc reported robust revenue of approximately $5.2 billion, reflecting a year-over-year increase of 4.8%. Adjusted earnings per share showed a strong uptick, reaching $1.09, up by 10.1% compared to the prior year. The results showcase the effectiveness of BJ's strategic focus on enhancing membership growth and member satisfaction. Notably, membership fee income surged by 9.1%, driven by the largest member count growth quarter since the pandemic. Management emphasized the importance of continuing to invest in business initiatives, which are intended to deliver long-term value and customer loyalty.
Key Performance Indicators
Key Insights
Revenue grew to $5.21 billion, with a gross profit margin of 18.38% compared to 17.79% in Q2 2023. Operating income was reported at $203.7 million (3.9% of sales) showing a sequential improvement. Notable cash flow from operations was $221.4 million. In terms of liquidity, the current ratio is at 0.76, highlighting some short-term liquidity risk in a rapidly changing economic environment. Membership fee income experienced a major growth of 9.1% in Q2 2024, indicating successful retention and acq...
Financial Highlights
Revenue grew to $5.21 billion, with a gross profit margin of 18.38% compared to 17.79% in Q2 2023. Operating income was reported at $203.7 million (3.9% of sales) showing a sequential improvement. Notable cash flow from operations was $221.4 million. In terms of liquidity, the current ratio is at 0.76, highlighting some short-term liquidity risk in a rapidly changing economic environment. Membership fee income experienced a major growth of 9.1% in Q2 2024, indicating successful retention and acquisition strategies. Net income also saw an impressive increase of 30.6% quarter-over-quarter, indicating strong demand and operational efficiency.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.21B |
5.70% |
5.83% |
| Gross Profit |
956.58M |
5.99% |
8.28% |
| Operating Income |
203.68M |
2.16% |
26.02% |
| Net Income |
144.99M |
11.13% |
30.60% |
| EPS |
1.09 |
11.22% |
29.76% |
Key Financial Ratios
operatingProfitMargin
3.91%
operatingCashFlowPerShare
$1.67
freeCashFlowPerShare
$0.66
Management Commentary
- "For the 10th consecutive quarter, we drove traffic gains in our business." - Bob Eddy, CEO
- "We've seen tremendous gains in perishable units, which is providing a bit of pressure but necessary for long-term renewal habits." - Bob Eddy, CEO
- "We are very proud of the progress that we're making in providing the best assortment for our members, the best value for our members each and every day." - Bob Eddy, CEO
"For the 10th consecutive quarter, we drove traffic gains in our business."
â Bob Eddy
"The structural benefits of our club model allow us to regularly invest in value proposition."
â Bob Eddy
Forward Guidance
Management expects continued growth in membership and revenue, forecasting a comp sales growth of 1%-2% excluding gas for fiscal 2024, with Q4 expected to outperform Q3. BJ's anticipates accelerated openings for 11 new clubs in the next six months, which could enhance sales and market share. Members are more sensitive to price, impacting initial investment, but the long-term strategy aims to secure loyalty through value and quality.