BJ’s blowout earningsBJ’s Wholesale Club ends a dramatic week of retail earnings on a positive note, reporting a rare (for this szn anyway) beat on both ends.
- BJ's shares blew up by 7.5% on Thursday in its best day of 2022, a much needed boost after falling 16% on Wednesday as the retail sector felt pressure from Target’s earnings fail. It came after the wholesaler beat on both ends with EPS of $0.87 on revenues that jumped 16% to hit $4.5bn.
- It found the silver lining of high gasoline prices. The national average for a gallon of gas hit a new high on Thursday, which isn’t great news for anyone except those that sell gas like BJ’s – total comparable club sales lifted by 14.4% YoY, but only 4.1% if you exclude gasoline sales.
- Bargain hunting shoppers (of which there are many rn) helped too. BJ’s saw a nearly 12% increase in membership fee income, as well as 26% growth in digital sales. The company’s wholesale business model is extra attractive in the current inflationary environment, and its ability to keep prices low despite the economy left investors excited.
Marty Finney / Unsplash
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