BJ’s Wholesale’s stock falls as same-store sales miss estimates and outlook is lowered

Shares of BJ’s Wholesale Club Holdings Inc. took a dive Friday, after the membership-based warehouse retailer reported a surprise dip in fiscal third-quarter same-store sales and cut its full-year outlook, citing “shifts in consumer behavior” driven by the broader economic environment.

The miss in same-store sales, or sales from stores open more than a year, offset profit and revenue that beat expectations, which were fueled by “accelerating membership growth, robust traffic gains and continued increases in market share.”

The stock

sank 6% in premarket trading, putting it on track for a four-month low amid what would be the biggest one-day selloff in six months.

Net income for the quarter to Oct. 28 rose to $130.5 million, or 97 cents a share, from $129.9 million, or 95 cents a share, in the same period a year ago. Excluding nonrecurring items, adjusted earnings per share slipped to 98 cents from 99 cents but beat the FactSet consensus of 95 cents.

Total revenue grew 2.9% to $4.925 billion, to top the FactSet consensus of $4.899, as sales increased 2.8% to $4.82 billion and membership fee income rose 6.6% to $106.1 million.

Meanwhile, same-store sales excluding gasoline sales declined 0.1%, while the FactSet consensus called for a 1.0% rise. That marked the third straight quarter that BJ’s has missed same-store sales expectations, according to FactSet data.

“As we look ahead to the rest of the year, we remain confident in our ability to maintain the momentum in our traffic and market share gains due to our unrelenting focus on value,” said Chief Financial Officer Laura Felice. “We also continue to navigate shifts in consumer behavior driven by the broader macroeconomic environment. As a result, we are refining our sales outlook for the rest of the year.”

The company reiterated its adjusted EPS guidance range for fiscal 2023 of $3.80 to $3.92, which surrounds the current FactSet consensus of $3.85. But for same-store sales, BJ’s now expects a decline of 2% to an increase of 1%, compared with previous guidance of growth of approximately 2%.

BJ’s stock has slipped 1.4% over the past three months through Thursday, while shares of rival Costco Wholesale Corp.

have gained 5.8% and the S&P 500

has tacked on 3.2%.

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