What factors could influence BJ's EPS in Q1 2026?

The factors that could influence BJ's EPS in Q1 2026 are as follows: 1. **Revenue Growth**: BJ's top line increased by 4.2% year-over-year to $4.92 billion in Q1 2024, exceeding expectations by $60 million. This growth in revenue can positively impact EPS if the increase in sales is accompanied by efficient cost management. 2. **Digital Solutions**: Digitally enabled comparable sales increased by 21%. The company's focus on enhancing omnichannel capabilities and providing value for customers through digital solutions could contribute to higher revenue and potentially higher EPS. 3. **Membership Fee Income**: Total membership fee income increased by 8.6% to $111.4 million. As membership growth continues, this could contribute to higher EPS. 4. **Selling, General, and Administrative Expenses**: There was a 5% year-over-year increase in SG&A expenses, which could adversely affect margins. If this trend continues, it could negatively impact EPS. 5. **Private-Label Offerings and Better Pricing**: BJ's focus on private-label offerings and better pricing could positively influence merchandise gross margins. If this strategy continues to be effective, it could contribute to higher EPS. 6. **New Club Openings and Club Sales**: The company is opening 12 new clubs this year, and comparable club sales increased by 1.6%. The impact of these new openings on EPS will depend on the profitability of the new clubs and the cost of expansion. 7. **Inflation and Consumer Spending**: Consumers are grappling with elevated inflation, which could impact spending patterns and, consequently, BJ's sales and EPS. If inflation persists, it could put pressure on EPS if it leads to decreased consumer spending. In conclusion, factors that positively influence BJ's EPS in Q1 2026 include revenue growth, digital solutions, membership fee income, and private-label offerings. Conversely, increased SG&A expenses and inflationary pressures could negatively impact EPS. The net effect will depend on the company's ability to manage costs, leverage its digital capabilities, and maintain strong sales growth.