BJ's Wholesale Club Beats On Earnings, But Revenue Misses Reflecting Shift In Consumer Behavior
Portfolio Pulse from Shivani Kumaresan
BJ's Wholesale Club Holdings Inc reported a 2.9% YoY decline in Q2 FY23 sales to $4.96 billion, missing the analyst consensus of $5.15 billion. Total comparable club sales decreased by 5.3%, while comparable club sales excluding gasoline sales increased by 1.1%. Membership fee income increased by 5% to $103.7 million. The company repurchased 715,122 shares of common stock, totaling $44.6 million in Q2. BJ's Wholesale expects FY23 EPS of $3.80-$3.92 versus the consensus of $3.87.
August 22, 2023 | 12:30 pm
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NEGATIVE IMPACT
BJ's Wholesale Club reported lower than expected Q2 FY23 sales, leading to a decrease in its premarket share price. However, the company's membership fee income increased and it repurchased a significant amount of its shares.
The company's lower than expected sales could negatively impact investor sentiment, leading to a decrease in its share price. However, the increase in membership fee income and the share repurchase could offset some of this negative impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100