Companies

BJ's Raises Fiscal 2026 Adjusted EPS After Comp Sales Reaccelerate

The Tip Desk · August 21, 2026 · 3 min read

Comparable club sales rose 11.9% in the second quarter, and the company lifted full-year adjusted EPS to $4.60 to $4.80.

BJ’s Wholesale Club Holdings (BJ) reported comparable club sales growth of 11.9% in the thirteen weeks ended August 1, 2026, a sharp pickup from 6.3% in the prior quarter after 1.6% in the quarter before that.

The membership warehouse club operator attributed the acceleration to gasoline sales and a broader rebound in club traffic. Comparable club sales excluding gasoline rose 3.1% year over year, after 1.5% growth in the first quarter. Net sales were $6.09 billion, up 15.9% from a year earlier, versus 9.9% growth in the prior quarter.

Chairman and Chief Executive Officer Bob Eddy said the company came in ahead of its expectations across sales and profitability, with strong membership momentum. The company opened three new clubs and one new gas station in the quarter. It now operates 267 clubs and 206 BJ’s Gas locations in 22 states.

Membership fee income increased 9.9% year over year to $135.6 million, matching the 9.9% rate in the first quarter. Member count reached a record 8.5 million. The increase was driven by membership acquisition, retention and higher-tier membership penetration across new and existing clubs. Digitally enabled comparable sales growth was 30%, with two-year stacked comp growth of 64%.

Profitability turned with the sales rebound. Diluted earnings and adjusted earnings were $1.36 a share, up 19.3% from a year earlier, after a 2.7% decline in diluted EPS and a 3.5% decline in adjusted EPS in the first quarter. Operating income was $252.4 million, up 16.5% year over year, versus 2.1% growth in the prior quarter. Adjusted EBITDA was $347.2 million, up 14.3%, versus 4.3% growth in the first quarter.

Gross profit increased to $1.11 billion from $1.01 billion a year earlier. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, decreased about 20 basis points, a larger compression than the approximately 10-basis-point decline in the first quarter. The decrease was primarily driven by continued investments in pricing, partially offset by tariff refund benefits recognized.

Selling, general and administrative expenses increased to $851.2 million from $786.4 million a year earlier. The increase was primarily due to labor, occupancy and operational costs from new club and gas station openings, and to higher depreciation from more owned clubs, partially offset by a gain on a sale-leaseback transaction. Income tax expense was $65.4 million.

Under its existing share repurchase program, the company bought 1,384,278 shares for $124.1 million, inclusive of associated costs, in the second quarter. About $422.1 million remained available under the program.

Executive Vice President and Chief Financial Officer Laura Felice said the quarter’s sales, membership fee income and gasoline results enabled the company to raise full-year adjusted EPS guidance. For fiscal 2026 ending January 30, 2027, the company now expects adjusted EPS of $4.60 to $4.80. It is maintaining comparable club sales guidance excluding gasoline of 2.0% to 3.0% year over year. Capital expenditures are expected at approximately $800 million, reflecting investment in new club openings and enhancements across the distribution network, including the ambient distribution center.

Felice said the company remains confident in its ability to deliver sustainable, profitable growth.