BJ’s Wholesale Club Says Shoppers Are Flocking to Its Pumps

Akanksha Bakshi

Sun, August 23, 2026 at 1:46 PM GMT+3 6 min read

BJ +2.78%

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BJ's Wholesale Club Holdings, Inc. reported fiscal second-quarter 2026 results Friday that beat Wall Street estimates for revenue and adjusted earnings. The retailer also raised its full-year adjusted EPS outlook. Shares traded higher following the results.

Total revenue rose 15.7% year over year to $6.227 billion, beating the $5.957 billion analyst estimate. GAAP diluted EPS rose to $1.36 from $1.14 a year earlier. Adjusted diluted EPS also increased 19.3% to $1.36, beating the $1.17 analyst estimate.

Sales, Membership And Digital Growth

Net sales increased 15.9% to $6.091 billion. Operating income rose 16.5% to $252.4 million, while net income increased 15.4% to $173.9 million. Adjusted EBITDA climbed 14.3% to $347.2 million.

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Comparable club sales increased 11.9%. Comparable sales excluding gasoline rose 3.1%.

Membership fee income grew 9.9% to $135.6 million, helped by member acquisition, retention and higher-tier penetration. Total membership reached a record 8.5 million.

Digitally enabled comparable sales jumped 30% and were up 64% on a two-year stacked basis.

BJ's opened three clubs in Texas and one gas station during the quarter. The company ended the period with 267 clubs and 206 gas stations across 22 states.

Margins And Operating Costs

Gross profit increased to $1.11 billion from $1.01 billion a year earlier.

Merchandise gross margin, excluding gasoline sales and membership fee income, declined about 20 basis points. Continued pricing investments weighed on margins, partly offset by tariff refund benefits.

Selling, general and administrative expenses rose to $851.2 million from $786.4 million. The increase primarily reflected higher labor, occupancy and operating costs tied to new openings.

Higher depreciation from a larger base of company-owned clubs also added to costs. A sale-leaseback gain partly offset the increase.

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Cash Flow And Share Repurchases

BJ's generated $401.5 million in operating cash flow and $265.5 million in adjusted free cash flow during the quarter.

The company ended the period with $30 million in cash and $629.2 million in total debt. Net debt stood at $599.3 million, or 0.5 times last-12-month adjusted EBITDA.

BJ's repurchased about 1.38 million shares for $124.1 million during the quarter. About $422.1 million remained under its existing authorization.

BJ's Raises Fiscal 2026 EPS Outlook

BJ's raised its fiscal 2026 adjusted EPS guidance to $4.60-$4.80 from $4.40-$4.60. The new range compares with the $4.53 analyst estimate.

The company maintained its outlook for comparable club sales growth excluding gasoline of 2% to 3%. It also continues to expect about $800 million in capital expenditures.

BJ's expects to open 25 to 30 clubs across fiscal 2027 and fiscal 2028.

Management Highlights Gas, Tariffs And Texas Growth

On the earnings call, BJ's said shoppers are increasingly turning to its gas stations as elevated fuel prices sharpen the appeal of its discounts.

Comparable fuel gallons jumped 10.5% in the quarter, even as industry data showed overall comparable gallons fell about 5%. Management said members have "flocked" to its pumps, while gas-discount membership offers have generated an "outsized" response.

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The strong volumes and favorable market conditions pushed fuel profit above plan and helped drive the company's earnings outperformance.

Expectations for the second half remain broadly unchanged. BJ's said tariff refunds that helped fund first-half price investments are nearly exhausted.

However, supplier refunds, assortment changes, retail media and gas profits should provide alternative funding for continued member investments.

Management expects membership fee income growth to moderate toward 6% by year-end as the prior fee increase laps.

Texas membership is tracking more than 30% ahead of plan. Meanwhile, BJ's plans to reduce its SKU count by about 20% over the next couple of years.

Photo by QualityHD via Shutterstock

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