BJ's Wholesale Club (BJ, Financial) surged to a new all-time high after announcing its Q4 earnings. The company exceeded EPS expectations, although revenue dipped 1.5% year-over-year to $5.28 billion, aligning with forecasts. Despite FY25 EPS guidance falling short of analyst predictions, investors remain optimistic. BJ projects FY25 comparable sales (excluding fuel) to rise by 2.0-3.5%.

• Impressive Q4 Comparable Sales: BJ's Q4 comparable sales (excluding fuel) increased by 4.6%, continuing a positive trend from previous quarters: +3.8% in Q3, +2.4% in Q2, and +0.6% in Q1. This marks the 12th consecutive quarter of traffic growth, driven by increased store visits and larger basket sizes.
• Growth in Perishables: BJ's strength in perishables, particularly in produce, dairy, and meat, has been consistent. The perishables grocery and sundries division achieved over 4% comp growth in Q4. Additionally, the general merchandise and services division outpaced the consumables business for the first time since the pandemic.
• Expansion Plans: BJ opened 7 new clubs and 12 gas stations in FY24, including its milestone 250th club in Louisville. The company expanded into Tennessee, Alabama, and Kentucky over the past two years and plans to enter Texas in 2026, specifically targeting the Dallas-Fort Worth area.
• Membership Growth: Membership fee income rose by 7.9% in Q4, with membership numbers exceeding 7.5 million and a renewal rate of 90%. BJ's sees membership as vital, having grown its member base by 40% since FY18. The company implemented its first membership fee increase in seven years, effective January 1, 2025, raising the Club membership fee to $60 and the Club+ fee to $120 annually.

Overall, BJ's Wholesale Club's report highlights strong EPS performance and accelerating comp growth throughout the year. The company has improved its grocery and general merchandise offerings, contributing to its stock reaching over $110 for the first time. While Costco (COST, Financial) and Sam's Club (WMT, Financial) remain dominant, BJ's is carving out a significant presence in the warehouse sector.