BJs Wholesale Club 2026 Q1 Earnings Strong Performance as Net Income Surges 34.9%

BJ's Wholesale Club(BJ) reported its fiscal 2026 Q1 earnings on May 22nd, 2025. The company exceeded expectations with a notable increase in net income, which surged by 34.9%. Despite revenue slightly missing analyst projections, the company maintained its full-year guidance, predicting comparable sales growth of 2% to 3.5%. Adjusted earnings per share are anticipated to be between $4.10 and $4.30, demonstrating confidence in its strategic direction amidst challenging market conditions.

Revenue
The total revenue of BJ's Wholesale Club increased by 4.8% to $5.15 billion in 2026 Q1, up from $4.92 billion in 2025 Q1. Net sales contributed significantly to this growth, reaching $5.03 billion, while membership fee income added $120.39 million to the total. The combination of these segments led to a total revenue of $5.15 billion.

Earnings/Net Income
BJ's Wholesale Club's EPS rose 35.7% to $1.14 in 2026 Q1 from $0.84 in 2025 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $149.77 million in 2026 Q1, marking 34.9% growth from $111.02 million in 2025 Q1. Remarkably, in 2026 Q1, the company set a new record high for fiscal Q1 net income, the highest in 9 years. The EPS increase indicates strong financial performance.

Post-Earnings Price Action Review
The strategy of buying BJ's Wholesale Club shares after their revenue drop Q/Q on the financial report release date and holding for 30 days has delivered strong returns over the past three years. Achieving an impressive 113.73% return, the strategy surpassed the benchmark by 67.76%. Despite experiencing a maximum drawdown of -23.52%, the strategy exhibited resilience, indicating effective risk management. With a Sharpe ratio of 1.04 and a CAGR of 29.03%, the results demonstrate robust performance, positioning it as a viable option for investors seeking to capitalize on post-revenue drop opportunities. This performance underscores the strategy's potential for those aiming to leverage market fluctuations.

CEO Commentary
Bob Eddy, Chairman & CEO, reported a strong start to the year, with net sales growth of nearly 5% and operating income increasing by 27%. He highlighted that membership continues to grow, driven by traffic, unit volume, and improvements in merchandising and digital convenience. Eddy acknowledged challenges such as unfavorable weather impacting discretionary categories but emphasized the company's commitment to delivering value amidst inflation. He expressed confidence in the long-term growth strategy, stating, "Our business model is built to win in both good times and times when consumers feel pressured," and indicated that BJ’s is well-positioned for sustainable growth.

Guidance
BJ's Wholesale Club maintains its initial full-year guidance of 2% to 3.5% comparable sales growth, excluding gas, and adjusted earnings per share in the range of $4.10 to $4.30. The company anticipates that the first half of the year will see stronger comparable sales than the latter half, emphasizing a commitment to long-term growth priorities while navigating a dynamic environment.

Additional News
Recently, BJ's Wholesale Club announced plans to open 25 to 30 new stores over the next two years, including the launch of five new locations in the current quarter. This expansion is part of their strategic growth initiative aiming to increase market presence. Furthermore, the company has been actively exploring alternative sourcing channels to mitigate tariff impacts, showcasing agility in its supply chain management. In response to ongoing market pressures, BJ's has maintained its commitment to delivering competitive pricing and value to its members, underscoring its resilience amidst economic fluctuations.