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Shares of BJ’s Wholesale Club Holdings Inc. (BJ) rose more than 12% on Thursday after the company posted better-than-expected fiscal fourth-quarter earnings amid looming macro-economic uncertainties, lifting retail sentiment.
The wholesale company posted earnings per share of $0.93, above the expected $0.88. Revenue stood at $5.28 billion, roughly in line with estimates.
Total comparable club sales increased by 4.0% and 2.5% in the fourth quarter and fiscal 2024, respectively, compared to the fourth quarter of the prior year and fiscal 2023.
Excluding the impact of gasoline sales, comparable club sales increased by 4.6% and 2.8% in the fourth quarter and fiscal 2024, respectively, compared to the same periods in fiscal 2023.
“Our terrific fourth quarter performance contributed to a record year at BJ’s, powered by all-time high membership results. 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,” said CEO Bob Eddy.
“As we look to fiscal 2025, we believe our continued focus on our strategic priorities and commitment to delivering great value will drive strong results for our business,” said Laura Felice, said CFO of BJ’s Wholesale Club. “We also recognize the macro-driven uncertainties in the operating environment and as such, remain cautiously optimistic about the year.”
For fiscal 2025, it projected comparable club sales, excluding the impact of gasoline sales, to increase 2.0% to 3.5% year-over-year. Adjusted EPS is expected to range from $4.10 to $4.30, compared to the consensus estimate of $4.30
It also expects capital expenditures of about $800 million, driven by its pipeline of future clubs and the construction of a recently announced ambient distribution center, the company said, adding it has plans for up to 30 clubs over the next two years.
Retail sentiment on the stock inched up in the ‘extremely bullish’ zone. Message volume climbed to ‘extremely high’ from ‘high.’
One bullish commenter called the stock an “easy buy on dip.”
BJ’s Wholesale Club stock is up 25% year-to-date.
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