Why Warehouse Club Chain BJ's Shares Are Falling Today
Portfolio Pulse from Akanksha Bakshi
BJ's Wholesale Club Holdings Inc (NYSE:BJ) reported Q3 FY23 sales of $4.92 billion, missing estimates by $0.04 billion. Comparable club sales were up 0.3%, with flat sales excluding gasoline. Membership fee income rose 6.6%, and digitally enabled sales increased 16% Y/Y. Gross profit and operating income saw modest increases, while adjusted EPS of $0.98 beat estimates by $0.02. The company repurchased $17.1 million in stock and reaffirmed its FY23 EPS guidance, but lowered its comparable club sales growth forecast. BJ's stock fell 4.59% in premarket trading.
November 17, 2023 | 2:04 pm
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BJ's Wholesale Club reported lower-than-expected Q3 sales and a reduced comparable club sales growth forecast, despite a slight increase in profits and beating EPS estimates. The stock fell 4.59% premarket.
The stock price is likely to go down in the short term due to the sales miss and lowered sales growth outlook, which can overshadow the slight profit increases and EPS beat. The premarket drop indicates immediate negative investor sentiment.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100