BJ’s Wholesale Club Holdings, Inc. Announces Second Quarter Fiscal 2026 Results
BJ's Wholesale Club Holdings, Inc. (BJ) filed an SEC Form 8-K — Results of Operations and Financial Condition. . Exhibit 99.1 BJ’s Wholesale Club Holdings, Inc. Announces Second Quarter Fiscal 2026 Results Strong second quarter results reflect accelerating comparable sales, record membership, and solid profitability; full-year EPS guidance raised Second Quarter Fiscal 2026 Highlights • Co
How this was made
The 30-second read
Why it matters
The earnings beat and guidance raise expectations for the stock, supporting a bullish short‑term trade.
Market read
Strong earnings and raised guidance make BJ a notable mover in the retail sector today.
What to watch
Higher SG&A and marginally lower gross margins could pressure profitability if cost inflation persists.
Strong second quarter results reflect accelerating comparable sales, record membership, and solid profitability; full-year EPS guidance raised
Second-quarter total revenues increased 15.7%, comparable club sales excluding gasoline increased 3.1%, membership fee income increased 9.9%, and GAAP diluted EPS increased 19.3% to $1.36. The Company raised full-year adjusted EPS guidance while maintaining its comparable club sales outlook excluding gasoline.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $6.09B | – | 15.9% |
| Membership fee incomeGAAP | $135.6M | – | 9.9% |
| Total revenuesGAAP | $6.23B | – | 15.7% |
| Comparable club salesother | 11.9% | – | 11.9% |
| Comparable club sales, excluding gasoline salesother | 3.1% | – | 3.1% |
| Digitally enabled comparable sales growthother | 30% | – | 30% |
| Digitally enabled comparable sales two-year stacked growthother | 64% | – | – |
| Member countother | 8.5 million members | – | – |
| Gross profitGAAP | $1.11B | – | – |
| Merchandise gross margin rateother | decreased by approximately 20 basis points | – | decreased by approximately 20 basis points |
| Cost of salesGAAP | $5.12B | – | – |
| Selling, general and administrative expensesGAAP | $851.2M | – | – |
| Pre-opening expensesGAAP | $6.44M | – | – |
| Operating incomeGAAP | $252.4M | – | 16.5% |
| Interest expense, netGAAP | $13.08M | – | – |
| Income before income taxesGAAP | $239.3M | – | – |
| Provision for income taxesGAAP | $65.41M | – | – |
| Net incomeGAAP | $173.9M | – | 15.4% |
| Basic earnings per shareGAAP | $1.37 | – | – |
| Diluted earnings per shareGAAP | $1.36 | – | 19.3% |
| Adjusted net incomenon-GAAP | $173.9M | – | 14.8% |
| Adjusted EPSnon-GAAP | $1.36 | – | 19.3% |
| Adjusted EBITDAnon-GAAP | $347.2M | – | 14.3% |
| Net cash provided by operating activitiesGAAP | $401.5M | – | – |
| Adjusted free cash flownon-GAAP | $265.5M | – | – |
| First six months total revenuesGAAP | $11.89B | – | 12.9% |
| First six months net incomeGAAP | $316.6M | – | 5.4% |
| First six months diluted earnings per shareGAAP | $2.46 | – | 8.4% |
| First six months adjusted EBITDAnon-GAAP | $645.3M | – | 9.4% |
| First six months adjusted free cash flownon-GAAP | $223.5M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal 2026 ending January 30, 2027 outlook
- NoteComparable club sales, excluding the impact of gasoline sales, to increase 2.0% to 3.0% year-over-year
- NoteAdjusted EPS to range from $4.60 to $4.80
- NoteCapital expenditures of approximately $800 million
Capital returns
- The Company repurchased 1,384,278 shares of common stock, totaling $124.1 million, inclusive of associated costs, in the second quarter of fiscal 2026.
- The Company repurchased 3,498,278 shares of common stock, totaling $330.7 million, inclusive of associated costs, in the first six months of fiscal 2026.
- Approximately $422.1 million remained available under the existing share repurchase program.
What drove it
- Comparable club sales increased by 11.9%, while comparable club sales excluding gasoline increased by 3.1%.
- Membership fee income growth was primarily driven by strength in membership acquisition, retention and higher-tier membership penetration across both new and existing clubs.
- Digitally enabled comparable sales growth was 30%, with two-year stacked comparable sales growth of 64%.
- The Company stated that outperformance on gas contributed to its ability to raise full-year adjusted EPS guidance.
- The Company opened three new clubs and one new gas station during the second quarter.
Concerns
- Merchandise gross margin rate, excluding gasoline sales and membership fee income, decreased by approximately 20 basis points year-over-year, primarily reflecting continued investments in pricing, partially offset by tariff refund benefits recognized.
- SG&A increased to $851.2 million, driven primarily by increased labor, occupancy and operational costs from new club and gas station openings, as well as higher depreciation from an increased number of owned clubs.
- Pre-opening expenses increased to $6,436 from $3,287.
- Interest expense, net, increased to $13,083 from $10,393.
- Cash and cash equivalents were $29,982 as of August 1, 2026, while short-term debt was $230,000.
What to watch
- Comparable club sales excluding gasoline against the fiscal 2026 outlook of 2.0% to 3.0% year-over-year growth.
- Whether membership acquisition, retention and higher-tier membership penetration continue to support membership fee income growth.
- Merchandise gross margin rate as the Company continues pricing investments and recognizes tariff refund benefits.
- The pace and cost of new club, gas station and distribution-network investment, including approximately $800 million of expected fiscal 2026 capital expenditures.
- Execution of the share repurchase program, with approximately $422.1 million remaining available as of the filing.
Balance sheet and cash flow
- Cash and cash equivalents were $29,982 as of August 1, 2026, compared with $47,273 as of August 2, 2025.
- Short-term debt was $230,000 and long-term debt was $399,245 as of August 1, 2026.
- Total debt was $629,245, net debt was $599,263, and net debt to LTM adjusted EBITDA was 0.5x as of August 1, 2026.
- Net cash provided by operating activities was $541,439 in the first six months of fiscal 2026, compared with $457,957 in the first six months of fiscal 2025.
- Additions to property and equipment, net of disposals and proceeds from sale-leaseback transactions, were $(359,339) in the first six months of fiscal 2026, compared with $(303,070) in the first six months of fiscal 2025.
- Net cash used in investing activities was $(321,739) in the first six months of fiscal 2026, compared with $(306,156) in the first six months of fiscal 2025.
- Net cash used in financing activities was $(235,963) in the first six months of fiscal 2026, compared with $(132,800) in the first six months of fiscal 2025.
- Cash and cash equivalents decreased by $16,263 in the first six months of fiscal 2026.
Analysis
BJ's reported a strong second quarter, with total revenues of $6,226,579, up 15.7%, and net sales of $6,090,975, up 15.9%. Total comparable club sales increased 11.9%, although comparable club sales excluding gasoline increased 3.1%. The filing identifies gas as a source of outperformance, making the gasoline-excluded comparable sales measure the clearer indicator of underlying club demand. Digital momentum was also notable, with digitally enabled comparable sales growth of 30% and two-year stacked growth of 64%.
Membership remained a central earnings driver. Membership fee income rose 9.9% to $135,604, and member count reached a record 8.5 million members. Management attributed fee-income growth to membership acquisition, retention and higher-tier membership penetration across both new and existing clubs. The Company opened three new clubs and one new gas station, which supported its growth strategy but also added to the cost base.
Profitability improved in dollars, with operating income increasing 16.5% to $252,357, net income increasing 15.4% to $173,867, and adjusted EBITDA increasing 14.3% to $347,196. GAAP diluted EPS and adjusted EPS were each $1.36, up 19.3%. Gross profit increased to $1.11 billion, but merchandise gross margin rate decreased by approximately 20 basis points as continued pricing investments more than offset, in part, tariff refund benefits. SG&A increased to $851.2 million due primarily to labor, occupancy, operational costs and depreciation associated with new openings, partially offset by a gain on a second-quarter sale-leaseback transaction.
Cash generation supported both investment and capital returns. Net cash provided by operating activities was $401,481 in the quarter and $541,439 in the first six months. Second-quarter adjusted free cash flow was $265,528. The Company repurchased $124.1 million of stock during the quarter and $330.7 million in the first six months, while approximately $422.1 million remained authorized. At August 1, 2026, cash and cash equivalents were $29,982, total debt was $629,245 and net debt to LTM adjusted EBITDA was 0.5x.
For fiscal 2026, management maintained its outlook for comparable club sales excluding gasoline to increase 2.0% to 3.0% year-over-year, raised adjusted EPS guidance to $4.60 to $4.80, and expects capital expenditures of approximately $800 million. The guide keeps the focus on sustaining underlying comparable sales, membership growth and profitability while funding new clubs and distribution-network enhancements. No prior-quarter outlook was supplied, so the degree of the EPS guidance increase cannot be quantified from the provided documents.
Management, verbatim
We delivered a strong second quarter, coming in ahead of our expectations across sales and profitability, with strong membership momentum. Our value proposition continued to resonate with members in our clubs and at our gas stations, and the momentum we're seeing across our strategic priorities gives us real confidence in the road ahead.
Bob Eddy, Chairman and Chief Executive Officer, BJ's Wholesale Club
Our second quarter results reflect strong execution and continued momentum in the business. We delivered solid profitability, grew membership fee income, and outperformed on gas — all of which enabled us to raise our full year adjusted EPS guidance.
Laura Felice, Executive Vice President, Chief Financial Officer, BJ's Wholesale Club
Not in the filing
stated, not guessed- Previous-quarter outlook, including prior adjusted EPS guidance and prior comparable club sales guidance, was not provided.
- Prior-quarter financial metrics were not separately reported.
- A reported GAAP gross margin percentage was not provided.
- A reported operating margin percentage was not provided.
- A reported net income margin percentage was not provided.
- Dividend amount or dividend policy was not reported.
- Revenue guidance was not provided.
- Forward guidance for gross margin, operating expenses and tax rate was not provided.
- Separate operating segment revenue disclosures were not provided.
- The amount of the second-quarter gain from the sale-leaseback transaction was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
BJ's Wholesale Club filed an 8‑K reporting its Q2 FY2026 financials and updated outlook.
Ticker impact
BJ's Wholesale Club reported Q2 FY2026 results with 15.9% sales growth and raised full-year adjusted EPS guidance to $4.60-$4.80.
Potential short-term rally of 3-5% as investors digest the beat and upgraded outlook.
Revenue and EPS both exceeded prior year, membership growth hit record, and guidance was increased, indicating improved fundamentals.
Market effects
Positive signal for the wholesale/discount retail sector, may lift peers like Costco and Walmart.
U.S. retail stocks could see modest gains in the afternoon session.
Limited to U.S. markets; no direct global impact.
Counterpoint
If the sales growth slows in the second half, the raised guidance may be premature, risking a pullback.
Key entities
- companyBJ's Wholesale Club Holdings, Inc.
U.S. wholesale retailer reporting earnings.
