BJ's Wholesale Club Holdings, Inc.

What they do

BJ's operates large-format warehouse clubs focused on manufacturer-branded groceries, fresh foods, general merchandise, and gasoline, offering up to 25% savings versus traditional supermarkets. Members shop in-club or via digital channels including bjs.com, mobile app with BOPIC, curbside, same-day delivery, and DoorDash/Instacart. The company has over 8 million members paying annual fees (Club $60, Club+ $120 as of 2025). Private label brands Wellsley Farms and Berkley Jensen represent approximately 27% of net sales excluding gasoline.

Revenue drivers

• Membership fees — Membership fee income was $499.8 million in fiscal 2025, growing over 25 consecutive years. In Q1 2026, fees rose 9.9% year-over-year to $132.4 million, driven by acquisition, retention, and higher-tier penetration.
• Merchandise sales (including groceries and general merchandise) — Net sales in Q1 2026 were $5.53 billion, up 9.9% year-over-year. Comparable club sales excluding gasoline rose 1.5%; gasoline-inclusive comps rose 6.3%.
• Gasoline — Gasoline is a key traffic driver; the company operates 199 gas stations. Gasoline sales inflate total comps (6.3% total vs 1.5% ex-gasoline) but carry lower margins. Fuel momentum was cited as a Q1 strength.
• Digital sales — Digitally enabled comparable sales grew 28% in Q1 2026, with two-year stacked comp growth of 63%. Digital includes BOPIC, curbside, same-day delivery, and ship-to-home.

Recent performance

In Q1 fiscal 2026 (13 weeks ended May 2, 2026), total revenues were $5.66 billion, up 9.9% year-over-year. Net income decreased 4.7% to $142.7 million, with diluted EPS of $1.10, down 2.7%. Adjusted EBITDA rose 4.3% to $298.1 million. Gross profit increased to $1.03 billion, but merchandise gross margin rate fell ~10 bps due to pricing investments. The company repurchased 2.1 million shares for $206.6 million.

Strategy

BJ's focuses on delivering value through low prices, private brands, and digital convenience. Management continues to invest in pricing, new club and gas station openings (one club and six gas stations in Q1 2026), and digital capabilities. They are expanding footprint in the eastern U.S., leveraging high-density markets. Higher membership penetration and retention are priorities, along with fuel growth.

Risks

• Consumer spending sensitivity — Economic conditions like inflation, interest rates, or unemployment could reduce member spending, impacting sales and margins.
• Membership retention — The business depends on a large loyal membership; any harm to member relationships could materially affect net sales.
• Competition — Warehouse clubs face competition from supermarkets, supercenters, online retailers, and discounters, which could pressure pricing and market share.
• Interest rate risk — Substantially all borrowings carry variable rates; as of Q1 2026, total debt was $775.0 million, and a 100 bps rate change would alter annual interest costs by ~$7.8 million.

Outlook

Management expresses confidence in the value proposition and strategy, investing in growth and footprint expansion. They cite momentum in membership, fuel, and digital sales. No specific forward guidance was provided in the excerpts, but the company continues to repurchase shares under its program.