Key Takeaways
- BJ’s Wholesale Holdings said full-year adjusted earnings per share could be at the low end of its forecast because of long-term investments.
- The retailer’s selling, general, and administrative expenses increased 8% from a year ago.
- Adjusted earnings per share, revenue, net sales, and membership fees all exceeded analysts’ estimates.
BJ’s Wholesale Club (BJ) shares sank after the retailer gave soft guidance as it looks to invest more money into the business.
BJ’s CFO Laura Felice said full-year adjusted earnings per share (EPS) could be at the low end of its forecast of $3.75 to $4 because of long-term investments. Analysts were looking for $3.88, according to estimates compiled by Visible Alpha.
Second-Quarter Results Exceed Analysts’ Estimates
BJ’s posted second-quarter adjusted EPS of $1.09, with revenue increasing 4.5% from a year ago to $5.21 billion. Net sales were up 4.4% to $5.09 billion, and membership fees jumped 8.9% to $113.1 million. All were above analysts’ estimates.
Selling, general, and administrative expenses (SG&A) rose 8% to $750.3 million.
CEO Bob Eddy said that the company had its 10th consecutive month of traffic growth, and that the quarterly results “demonstrate the meaningful progress we are making on our long term strategic initiatives.”
Shares of BJ’s were down over 6% at $81.63 in intraday trading Thursday, though even with Thursday’s losses, they’ve gained more than 22% since the start of the year.
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