BJ’s Wholesale Club Holdings Inc. reported adjusted earnings per share of $1.36 for the second quarter of fiscal 2026, a 19% increase from the prior-year period and ahead of Wall Street’s $1.17 estimate. Revenue rose 16% to $6.09 billion, surpassing expectations of $5.97 billion.
Comparable club sales increased 12%, driven by a 3.1% gain in merchandise comps excluding gasoline. Membership fee income grew 10% to $136 million, while adjusted EBITDA rose 14% to $347 million. Gross profit increased 10% to $1.11 billion, though merchandise gross margins contracted by roughly 20 basis points due to value-focused investments.
The company raised its full-year adjusted EPS guidance to a range of $4.60 to $4.80, up from the prior outlook. Comparable club sales guidance was maintained at 2% to 3%, excluding gasoline, with management noting expectations to finish toward the high end of the range. Membership fee income is expected to moderate later in the year as last year’s fee increase normalizes.
BJ’s ended the quarter with 8.5 million members, an all-time high, and higher-tier membership penetration reached 43%. Total comparable club sales growth of 30% in digitally enabled channels outpaced the broader business, with a two-year stacked comp growth of 64%. Fuel gallons rose 10.5% year-over-year, outperforming the broader market, while fuel profit dollars exceeded plan due to strong volume and lower peak prices.
Expansion efforts accelerated, with three new clubs opened in Texas during the quarter, bringing the state’s total to four. Membership in Texas is tracking over 30% ahead of plan, and all four Texas gas stations rank in the top 30% of the chain for gallons. Seven additional club openings and one relocation are planned for the remainder of 2026, including locations in Alabama and Florida. A new club in Tyler, Texas, is scheduled for early 2027, with projects through 2030 also underway. The company remains committed to opening 25 to 30 new clubs every two years.
Technology initiatives included the AI shopping assistant “Bev,” which has hosted over 100,000 member conversations, while assortment simplification efforts aim to reduce SKUs by about 20% to streamline operations.
