BJ's Wholesale Club posts record sales, membership growth and raises FY26 EPS outlook

BJ's Wholesale Club beat on both lines and raised guidance. Revenue rose about 16% to $6.23 billion against a Wall Street estimate near $5.97 billion, and adjusted earnings came in at $1.36 a share versus a $1.17 consensus. BJ shares gained on the print.

The composition of the comp is the part worth reading. Comparable store sales rose 11.9% year over year, but that figure leans heavily on fuel. Excluding gasoline, comps grew 3.1%, ahead of the roughly 2.6% analysts expected. That is a healthy merchandise number in its own right, and it is the one to track, because fuel-inflated comps reverse the moment gas prices roll over.

The recurring-revenue side also improved. Membership fee income reached $135.6 million in the quarter against $123.3 million a year earlier, on a record membership base. Membership income is the highest-quality line in a warehouse club model because it is prepaid, high-margin and a direct proxy for renewal behavior, so double-digit growth there supports the earnings raise more convincingly than a fuel-driven top line does.

Management lifted full-year adjusted EPS guidance to $4.60 to $4.80 from $4.40 to $4.60. Watch whether ex-gas comps hold near 3% as the fuel tailwind fades, how membership fee income trends once the current fee structure fully annualizes, and how the club's traffic compares with COST and WMT as consumers continue trading down on grocery.

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