BJ's Wholesale Club reported first-quarter fiscal 2026 earnings that beat expectations on Thursday, though the headline sales growth figure masked a far more modest performance in the company's core merchandise business.
Elevated pump prices have remained a significant factor for shoppers, drawing budget-conscious consumers to warehouse club fuel stations
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BJ's Wholesale Club reported first-quarter fiscal 2026 earnings that beat expectations on Thursday, though the headline sales growth figure masked a far more modest performance in the company's core merchandise business.
Total comparable club sales rose 6.3% year-over-year in the thirteen weeks ended May 2, the company said. But once gasoline sales were stripped out, comparable club sales increased just 1.5% over the same period.
Pump prices have remained a significant factor for shoppers, with AAA data showing average national per-gallon gasoline costs topping $4.50 and climbing past $6 in certain states. That's drawing budget-conscious consumers to warehouse club fuel stations.
For the 13 weeks ended May 2, net income came in at $142.7 million, equivalent to $1.10 per diluted share. Earnings in the prior-year quarter had reached $149.8 million, or $1.13 per diluted share. Adjusted earnings per diluted share also came in at $1.10.
Total revenues for the quarter reached $5.66 billion, up from $5.15 billion a year earlier. Membership fee income rose 9.9% year-over-year to $132.4 million, the company said, driven by membership acquisition, retention, and higher-tier membership penetration across new and existing clubs.
Gross profit increased to $1.03 billion from $969.5 million in the year-earlier quarter, though merchandise gross margin rate — which excludes gasoline sales and membership fee income — fell by roughly 10 basis points, the company said, as the retailer continued to invest in pricing, partially offset by tariff refund benefits recognized in the quarter.
Selling, general and administrative expenses rose to $806.0 million from $760.9 million a year earlier, an increase the company attributed to higher labor, occupancy, and operational costs tied to new club and gas station openings, as well as increased depreciation from a growing number of owned clubs.
BJ's Wholesale Club now operates 267 clubs and 205 BJ's Gas locations across 22 states. The company opened one new club and six new gas stations during the quarter and repurchased 2,114,000 shares of common stock totaling $206.6 million.
The company left its fiscal 2026 full-year guidance unchanged. It continues to project comparable club sales growth — excluding gasoline — of 2.0% to 3.0%, and adjusted earnings per diluted share of $4.40 to $4.60.
"Our guidance for fiscal 2026 is unchanged, and we remain confident in our ability to invest for long-term growth and deliver sustainable, profitable results," CFO Laura Felice said in a statement.
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