BJ's Q1 Earnings: Revenue Rises, Guidance Held

BJ's Wholesale Club Holdings, Inc. (NYSE: BJ) reported first-quarter fiscal 2026 results on May 22, 2026, saying membership, fuel, and digital sales lifted revenue while earnings softened. Management reaffirmed full-year guidance.

Revenue and Membership Growth

For the 13 weeks ended May 2, 2026, BJ's Wholesale Club revenue reached $5.7 billion, up 9.9% year over year. Total comparable club sales rose 6.3%, with sales excluding gasoline up 1.5%. Digitally enabled comparable sales grew 28%, with two-year stacked digital comps at 63%. Membership fee income increased 9.9% to $132 million, driven by higher acquisition, retention, and penetration of higher-tier memberships. Bob Eddy, chairman and CEO, said, "Momentum in membership, fuel and digital sales reflects the disciplined execution of our teams."

Profitability and Cash Flow

Gross profit rose to $1.0 billion from $970 million a year earlier, with merchandise gross margin excluding gasoline expanding. Net income declined 4.7% to $143 million. Diluted and adjusted earnings per share were $1.10, while adjusted EBITDA increased 4.3% to $298 million. Adjusted free cash flow swung to an approximately $42 million outflow as capital expenditures reached $182 million. The company repurchased about 2.1 million shares for $207 million during the quarter.

Guidance and Fitch Rating

Management reaffirmed fiscal 2026 guidance issued March 5, calling for comparable club sales excluding gasoline of 2.0%–3.0%, adjusted EPS of $4.40–$4.60, and roughly $800 million in capital expenditures. Fitch assigned BJ's a first-time long-term issuer default rating of 'BBB', rated its asset-based lending facility and secured term loan at 'BBB+', and set a Stable Outlook, citing the company’s continued growth and financial discipline.