BJ's Wholesale Club Holdings, Inc. — Second Quarter Fiscal 2026 Earnings Summary

Financial Performance

• Net sales increased 15.9% year-over-year to $6.09 billion for the thirteen weeks ended August 1, 2026, and 12.9% to $11.62 billion for the twenty-six weeks ended August 1, 2026.
• Membership fee income rose 9.9% year-over-year to $135.6 million in the second quarter and $268.0 million in the first six months.
• Total revenues increased 15.7% to $6.23 billion in the second quarter and 12.9% to $11.89 billion in the first six months.
• Operating income grew 16.5% to $252.4 million in the second quarter and 9.5% to $460.3 million in the first six months.
• Net income increased 15.4% to $173.9 million in the second quarter and 5.4% to $316.6 million in the first six months.
• Earnings per diluted share (EPS) were $1.36 in the second quarter, up 19.3% from $1.14, and $2.46 for the first six months, up 8.4% from $2.27.
• Adjusted EPS was $1.36 in the second quarter and $2.46 for the first six months.
• Adjusted EBITDA increased 14.3% to $347.2 million in the second quarter and 9.4% to $645.3 million in the first six months.
• Gross profit increased to $1.11 billion in the second quarter and $2.14 billion in the first six months; merchandise gross margin rate decreased approximately 20 basis points in the quarter and 10 basis points in the first six months.
• Selling, general and administrative expenses increased to $851.2 million in the second quarter and $1.66 billion in the first six months.
• Net cash provided by operating activities was $541.4 million for the first six months of fiscal 2026.
• Net cash used in investing activities was $321.7 million for the first six months, primarily due to additions to property and equipment.
• Net cash used in financing activities was $236.0 million for the first six months, driven by stock repurchases.
• Cash and cash equivalents were $29.98 million as of August 1, 2026.
• Total debt was $629.2 million, resulting in net debt of $599.3 million and a net debt to LTM adjusted EBITDA ratio of 0.5x.

Guidance and Future Outlook

• Full-year adjusted EPS guidance raised to a range of $4.60 to $4.80.
• Full-year comparable club sales guidance (excluding gasoline) maintained at an increase of 2.0% to 3.0% year-over-year.
• Capital expenditures for fiscal 2026 estimated at approximately $800 million.
• Management expressed confidence in delivering sustainable, profitable growth and maintaining momentum in membership acquisition and retention.

Business Segments and Product Lines

• Comparable club sales increased 11.9% year-over-year in the second quarter and 9.2% in the first six months.
• Comparable club sales excluding gasoline increased 3.1% in the second quarter and 2.3% in the first six months.
• Digitally enabled comparable sales growth was 30% in the second quarter, reflecting a two-year stacked comp growth of 64%.
• Member count reached a record 8.5 million members.
• The Company opened three new clubs and one new gas station during the second quarter.
• The Company currently operates 267 clubs and 206 BJ's Gas locations across 22 states.
• Higher-tier membership penetration increased across both new and existing clubs.

Market and Competitive Landscape

• No specific market share data or direct competitor comparisons were provided in the press release.
• Management noted that the value proposition continued to resonate with members at clubs and gas stations.

Risks and Challenges

• The press release includes a standard "Forward-Looking Statements" section citing risks such as financial market instability, geopolitical conflicts, consumer spending patterns, inflation, supply chain disruptions, construction delays, and exchange rates.
• Specific risks mentioned include dependence on membership loyalty, ability to procure merchandise at best prices, vendor relationships, real estate conditions, capital spending, cybersecurity, and the ability to attract and retain qualified management.

Management Commentary and Tone

• Bob Eddy, Chairman and CEO, stated the company delivered strong results ahead of expectations with strong membership momentum and confidence in the road ahead.
• Laura Felice, EVP and CFO, noted that strong profitability, membership fee income growth, and gas performance enabled the raised full-year adjusted EPS guidance.
• Management emphasized commitment to investing in long-term growth and maintaining full-year comp sales guidance.

Other Key Points

• The Company repurchased 1,384,278 shares totaling $124.1 million in the second quarter and 3,498,278 shares totaling $330.7 million in the first six months.
• Approximately $422.1 million remained available for share repurchases under the existing program as of the end of the quarter.
• A gain was recognized in connection with a sale-leaseback transaction in the second quarter of fiscal 2026, partially offsetting increased SG&A.
• Tariff refund benefits were recognized, partially offsetting continued investments in pricing that drove the decrease in merchandise gross margin rate.
• Increased depreciation expense year-over-year was driven by an increase in the number of owned clubs.