BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) stock fell Friday even after the warehouse retailer reported first-quarter earnings and revenue that topped Wall Street estimates, fueled by strong membership growth, accelerating digital sales and resilient demand from higher-income shoppers.

The company reaffirmed its full-year outlook and struck a confident tone on the earnings call, highlighting market share gains, aggressive long-term investment plans, and continued momentum in newer markets such as Texas despite ongoing pressure on lower-income consumers.

BJ’s Wholesale Strong Quarterly Earnings Beat

The company reported first-quarter adjusted earnings per share of $1.10, beating the analyst consensus estimate of $1.03. Quarterly sales of $5.529 billion outpaced the Street view of $5.396 billion.

Comparable club sales increased 6.3% year over year, while comparable club sales excluding gasoline sales rose 1.5%.

Adjusted EBITDA jumped 4.3% year over year to $298.07 million.

Membership Growth And Margin Performance

In the quarter under review, membership fee income increased by 9.9% year-over-year to $132.4 million.

Gross profit increased to $1.03 billion compared to $969.5 million in the first quarter of fiscal 2025. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, decreased by approximately 10 basis points.

Digitally enabled comparable sales grew 28% year over year, reflecting two-year stacked comparable growth of 63%.

“Our first quarter performance reflects disciplined execution and continued investment in the business,” said Laura Felice, Executive Vice President, Chief Financial Officer, BJ’s Wholesale Club. “As we look ahead, 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.”

BJ’s Wholesale Balance Sheet And Fiscal 2026 Outlook

The company exited the quarter with cash and equivalents worth $27.826 million.

BJ’s Wholesale Club Holdings reaffirmed fiscal 2026 adjusted EPS guidance of $4.40 to $4.60. The outlook brackets the analyst consensus estimate of $4.51.

Earnings Call Highlights Consumer Spending Trends

CEO Bob Eddy said consumer spending remains uneven, with lower-income shoppers facing ongoing pressure and middle-income consumers showing limited growth, while affluent customers continue to drive most spending gains.

He said the company is focusing on serving higher-income shoppers with more upscale product offerings while maintaining strong value positioning.

Management struck a confident but disciplined tone on the call, emphasizing market share gains, strong membership momentum and aggressive long-term investment despite ongoing consumer pressure.

Executives repeatedly highlighted BJ’s value positioning, saying the company intentionally reinvested tariff refund benefits into lower prices to strengthen member loyalty rather than maximize near-term margins.

BJ’s Wholesale Texas Expansion And Digital Growth

Management was especially bullish on its Texas expansion, calling the openings among the best in company history, while also pointing to strong digital growth, fuel-driven traffic gains and higher engagement from affluent shoppers.

At the same time, executives acknowledged continued pressure on lower-income consumers, elevated fuel and freight costs, and a volatile pricing environment, but said BJ’s plans to continue “playing offense” through pricing, convenience and expansion investments.

BJ Price Action: BJ’s Wholesale shares were down 8.74% at $86.17 at the time of publication on Friday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

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