BJ's Wholesale raises full-year forecast as Q2 profit climbs to $173.9 million

Membership-fee income rises 9.9% to $135.6 million

BJ’s Wholesale Club on Friday reported second-quarter profit of $173.9 million, or $1.36 a share, compared with $150.7 million, or $1.14 a share, a year earlier, according to The Wall Street Journal. Stripping out one-time items, adjusted earnings still came in at $1.36 a share. Analysts polled by FactSet had expected adjusted earnings of $1.17 a share.

Total revenue climbed 16% to $6.23 billion, ahead of Wall Street estimates of $5.97 billion.

Comparable-club sales, which include results from store openings and closings, increased 12%, or 3.1% excluding gasoline sales. Analysts had been looking for a 2.6% gain.

Membership-fee income rose 9.9% to $135.6 million. The company attributed the increase to strength in membership acquisition, retention, and higher-tier membership penetration across both new and existing clubs.

Chief Executive Bob Eddy said the company’s value proposition continues to resonate with members at its clubs and gas stations. “The momentum we’re seeing across our strategic priorities gives us real confidence in the road ahead,” he added.

BJ’s raised its full-year adjusted earnings forecast to a range of $4.60 to $4.80 a share for the fiscal year ending Jan. 30. That compares with a prior forecast of $4.40 to $4.60 a share. The company continues to project comparable-club sales, excluding the impact of gasoline sales, to be up 2% to 3%.

Analysts surveyed by FactSet are looking for adjusted earnings of $4.53 a share and comparable-club sales growth of 2.5%, the Journal reported.

Shares climbed 3.9%, to $94.90, in premarket trading.

Reporting by Connor Hart of The Wall Street Journal.