BJ’s Wholesale Club Holdings, Inc. (BJ) Q1 2026: Revenue Growth but Declining Net Income — Cautiously Optimistic

BJ’s Wholesale Club Holdings, Inc. reported its financial results for the first quarter of fiscal 2026, revealing a mixed performance compared to the previous year. The company achieved a 9.9% increase in net sales, totaling $5,529,145 compared to $5,033,094 in Q1 2025. However, net income saw a decline of 4.7%, dropping to $142,726 from $149,768 year-over-year.

This quarter's results indicate a solid revenue growth trajectory, but the decline in net income raises concerns for shareholders. The increase in sales is a positive sign, reflecting strong membership growth and digital sales momentum. However, the decrease in net income and earnings per share (EPS), which fell to $1.10 from $1.13, suggests that rising costs and operational challenges are impacting profitability.

Key Metrics:

• Net Sales: $5,529,145 (up 9.9% YoY)
• Membership Fee Income: $132,355 (up 9.9% YoY)
• Total Revenues: $5,661,500 (up 9.9% YoY)
• Operating Income: $207,913 (up 2.1% YoY)
• Net Income: $142,726 (down 4.7% YoY)
• EPS: $1.10 (down 2.7% YoY)
• Adjusted EBITDA: $298,070 (up 4.3% YoY)

Analyst Opinion

This quarter presents a mixed bag for BJ's shareholders. On one hand, the 9.9% growth in net sales and a 28% increase in digitally enabled comparable sales are encouraging indicators of the company's ability to attract and retain members. The growth in membership fee income, which rose to $132.4 million, is also a positive sign of BJ's value proposition resonating with consumers.

However, the decline in net income and EPS is concerning. The increase in selling, general, and administrative expenses, which rose to $806.0 million from $760.9 million, indicates that BJ's is facing higher operational costs, likely due to investments in new clubs and gas stations. This could impact future profitability if not managed effectively.

Shareholder Returns and Guidance

BJ's has been active in returning capital to shareholders, repurchasing 2,114,000 shares for a total of $206.6 million during the quarter. This move reflects management's confidence in the company's long-term prospects, despite the current challenges.

Looking ahead, BJ's has maintained its guidance for fiscal 2026, projecting comparable club sales (excluding gasoline) to increase by 2.0% to 3.0% year-over-year and adjusted EPS to range from $4.40 to $4.60. The company plans to invest approximately $800 million in capital expenditures, focusing on new club openings and enhancements to its distribution network.

Forward Catalysts

Investors should keep an eye on the upcoming quarters for signs of improved profitability and cost management. Key areas to watch include:

• The impact of new club openings on overall sales and membership growth.
• Trends in digital sales and how they contribute to overall revenue.
• Management's ability to control rising operational costs while maintaining growth.

In conclusion, while BJ's Wholesale Club has demonstrated strong revenue growth and membership momentum, the decline in net income and EPS highlights the need for careful management of costs and operational efficiency. The company's strategic investments and focus on member value will be critical in navigating the challenges ahead.

BJ'S WHOLESALE CLUB HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share amounts)

(Unaudited)

Note: All amounts are in thousands.

	Thirteen Weeks Ended
	May 2, 2026	May 3, 2025
Net sales	$5,529,145	$5,033,094
Membership fee income	$132,355	$120,389
Total revenues	$5,661,500	$5,153,483
Cost of sales	$4,633,599	$4,183,984
Selling, general and administrative expenses	$806,010	$760,880
Pre-opening expenses	$13,978	$4,974
Operating income	$207,913	$203,645
Interest expense, net	$12,367	$11,099
Income before income taxes	$195,546	$192,546
Provision for income taxes	$52,820	$42,778
Net income	$142,726	$149,768
Income per share attributable to common stockholders—basic:	$1.11	$1.14
Income per share attributable to common stockholders—diluted:	$1.10	$1.13
Weighted-average number of shares outstanding: Basic	128,650	131,569
Diluted	129,383	132,749

BJ'S WHOLESALE CLUB HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except per share amounts)

(Unaudited)

Note: All amounts are in thousands.

	May 2, 2026	May 3, 2025
ASSETS
Current assets:
Cash and cash equivalents	$27,826	$39,484
Accounts receivable, net	$319,936	$240,419
Merchandise inventories	$1,668,263	$1,567,032
Prepaid expense and other current assets	$198,876	$81,833
Total current assets	$2,214,901	$1,928,768
Operating lease right-of-use assets, net	$2,004,451	$2,065,890
Property and equipment, net	$2,534,420	$1,988,290
Goodwill	$1,008,816	$1,008,816
Intangibles, net	$94,239	$99,697
Deferred income taxes	$4,593	$7,615
Other assets	$67,578	$58,596
Total assets	$7,928,998	$7,157,672
LIABILITIES
Current liabilities:
Short-term debt	$375,000	$150,000
Current portion of operating lease liabilities	$181,994	$169,568
Accounts payable	$1,438,931	$1,255,867
Accrued expenses and other current liabilities	$1,048,934	$934,974
Total current liabilities	$3,044,859	$2,510,409
Long-term operating lease liabilities	$1,905,325	$1,977,180
Long-term debt	$399,172	$398,880
Deferred income taxes	$68,228	$55,386
Other non-current liabilities	$385,155	$244,232
STOCKHOLDERS' EQUITY	$2,126,259	$1,971,585
Total liabilities and stockholders' equity	$7,928,998	$7,157,672

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