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Shares of BJ’s Wholesale Club Holdings (BJ) surged an impressive 12.2% on Mar. 6, hitting an all-time high after the retail chain reported solid earnings.
For the fiscal fourth quarter ended Feb. 1, the company reported adjusted earnings per share of 93 cents, beating the consensus estimate of 87 cents. Revenue fell 1.5% year-over-year to $5.28 billion but surpassed analysts' forecast of $5.27 billion.
Comparable club sales, a key metric for retail performance, jumped 4% year-over-year, which was also above market consensus.
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The company's CEO, Bob Eddy, credited the strong performance to "all-time high membership results."
The membership fee income climbed nearly 8% to $117 million, reflecting both growth in member numbers and the lingering effects of a fee increase announced in late 2024 and took effect in January 2025.
"Our improved assortment, investments in value and significant growth in digital sales drove our 12th consecutive quarter of traffic growth. We are also growing our footprint at pace to serve even more members,” Eddy said.
Digitally enabled sales increased by 26%, a sign that BJ’s investments in e-commerce and convenience were paying off as more shoppers turned to online ordering and pickups.
The earnings beat wasn’t the only fuel for the stock’s rally.
BJ’s Wholesale has bold plans
Founded in 1984 in Massachusetts, BJ’s Wholesale Club started as a modest operation, aiming to bring bulk-buying savings to East Coast shoppers.
Unlike its larger rivals, Costco and Sam’s Club, BJ’s focused on a more localized strategy and established a strong foothold in the eastern United States.
Now, with over 200 clubs and 7.5 million members, BJ’s has become a formidable competitor to its bigger peers.
Related: Costco Making One Big Change Members Will Love
Together with the earnings results, BJ’s management unveiled an ambitious roadmap, announcing plans to open 25 to 30 new stores over the next two fiscal years, including a push into Texas with several locations slated for the Dallas-Fort Worth area starting in 2026.
“Economic expansion and a growing population make Texas a great fit for us," Eddy said.
BJ’s Wholesale also plans to open several new locations in 2025 across Florida, Georgia and Tennessee.
President Donald Trump's recent escalation of tariffs on imports from China, Canada, and Mexico has caused uncertainty for retailers, as imported products are facing higher costs.
Major retailers like Target (TGT) and Best Buy (BBY) have warned of price increases ahead.