BJ's Wholesale's keeps beating profit views and the stock rises, even as sales growth disappoints

By Tomi Kilgore

Retailer's full-year outlook for comparable-club sales was adjusted lower, but the earnings guidance was raised for a second time in three months

BJ's Wholesale's stock gains after profit beat expectations and the full-year outlook was raised again, to offset disappointing growth in a key sales metric.

Shares of BJ's Wholesale Club Holdings got a lift in early Friday trading, as investors were relieved that the membership-based warehouse retailer keeps beating profit expectations, even as sales growth came up short of forecasts.

And while the full-year sales outlook was lowered slightly, the projected range of earnings per share was raised for a second straight quarter.

The stock (BJ) rose 2.7% in recent premarket trading. That keeps it on track to post its first monthly gain in seven months.

For the quarter to Nov. 1, comparable-club sales, or sales in stores open at least 13 months, increased 1.8% from the same period a year ago, but that was below the average analyst estimate compiled by FactSet for growth of 2.4%. In comparison, rival Costco Wholesale (COST) has reported 6.6% same-store sales growth for October and 5.7% growth in September.

Net income slipped 2.4% to $152.1 million, while adjusted earnings per share, which excludes nonrecurring items, of $1.16 topped the FactSet EPS consensus of $1.09. The company hasn't missed bottom-line expectations in at least five years, based on available FactSet data back to August 2020.

Total revenue increased 4.9% to $5.35 billion, a hair above the FactSet consensus of $5.34 billion. Included in total revenue, net sales were up 4.8% to $5.22 billion and membership fee income climbed 9.8% to $126.3 million.

For the full fiscal year, the company said it now expects comparable sales growth of 2% to 3%, compared with previous guidance of a rise of 2% to 3.5%. But the company raised its guidance range for adjusted EPS to $4.30 to $4.40 from $4.20 to $4.35, after raising it from $4.10 to $4.30 three months ago.

BJ's stock has edged up 1.4% in 2025 through Thursday, while shares of Costco, which doesn't report quarterly results until Dec. 11, have slipped 2.5% and the S&P 500 index SPX has gained 11.2%.

-Tomi Kilgore

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11-21-25 0716ET