In an August 22^nd release, BJ’s Wholesale Club Holdings (BJ) announced second quarter FY 2023 results for the period ending July 29^th 2023.  The company posted net income of $131.3 million on total revenue including membership fees of $4,964 million with a diluted EPS of $0.97, beating consensus estimates of $0.90.  Comparable values for the second quarter of FY 2022 were net income of $141.0 million on revenue of $5,103 million with a diluted EPS $1.05. Comparing the second quarters, revenue was down 2.7 percent. During the most recent quarter BJ’s attained a gross margin of 16.3 percent (15.2 percent in Q2 FY 2022) and an operating margin of 4.0 percent, unchanged from Q2 2022. For the second quarter, comparable club sales, excluding fuel, increased by 1.1 percent. Digital sales increased by 15 percent.

In commenting on results, Bob Eddy, president and CEO stated, “Our strong performance in the second quarter reflects our continued gains in membership, traffic and market share, driven by the great value that we provide our members every day,” said Bob Eddy, Chairman and Chief Executive Officer, BJ’s Wholesale Club. “We continue to balance gross margins with investments in value and in growing the size and quality of our membership with an eye toward the future. I’m proud of the team’s execution in the quarter and believe that we are well-positioned for continued growth.”

Guidance for FY 2023 included a 2.0 percent increase in comparable store sales downgraded from 4.0 percent; a 50 basis point improvement in gross margin and an EPS ranging from $3.80 to $3.90.

Effective July 29^th 2023, BJ’s posted total assets of $6,604 million including $1,120 goodwill and intangibles and carried long-term debt and lease obligations of $2,717 million.  BJ’s had a market capitalization of $8,700 million on August 28^th The share has traded over the past 52 weeks from $60.33 to $80.41 with a 50-day moving average of $65.28.  BJ’s closed at $69.73 on Tuesday 22^nd.August, pre-release, closing on Wednesday 23^rd post release at $66.20.  BJ’s trades with a forward P/E of 16.7.  For the trailing-12 months the company posted an operating margin of 4.0 percent and a profit margin of 2.6 percent.  The company returned 7.4 percent on assets and 48.7 percent on equity over the past twelve months.

BJ’s has contracted with Simbe Inc. to deploy Tally robots with a complementary integrated inventory control system in all stores.

The company operates 237 warehouse stores with 165 fuel centers in 18 states.