6 days ago 7

Analyst Report: BJ`s Wholesale Club Hldgs In

  1. All
  2. Analyst Report

Argus

Argus

Apr 04, 2025

BJ's Wholesale Club Holdings, Inc.: Initiating FY27 EPS estimate for 9% growth

Sector(s)

Consumer Defensive

Summary

BJ's Wholesale Club Holdings owns BJ's Wholesale Club, which operates a chain of warehouse clubs in the Eastern U.S. BJ's positions itself between traditional grocery stores and warehouses like Sam's Club and Costco. It offers a wider range of items and smaller pack sizes than Costco and Sam's. The company posted total revenue of $20 billion in FY25, which ended on February 1, 2025. Income from membership fees represented 2.2% of total revenue and 59% of operating income. The company sells name-brand merchandise and food to members, who are small business owners and consumers. Based in Westborough, Massachusetts, the company also offers specialty services, including tire installation, optical services, and photo developing.

At the end of FY25, the company operated 250 BJ's clubs and 186 gas stations in 21 states. More than half of the clubs are in four states: New York, Florida, Massachusetts, and New Jersey. About 23% of FY25 sales were generated in the New York City metro area (down from 25% in FY21 and FY20). Clubs range from 44,000 to 177,000 square feet. BJ's sells a relatively narrow assortment of approximately 7,000 SKUs, which it has discussed trimming to about 6,000 to improve inventory turnover.

Groceries represented 71% of the company's FY25 net sales (70% in FY24, 67% in FY23, 71% in FY22); general merchandise and services accounted for 11% in FY25, 11% in FY24, and 12% in FY23 and 14% in FY22. Gasoline rose to 21% in FY23 from 15% in FY22 and 9% in FY21. Gas was 19% of sales in FY24 and 18% in FY25.

A predecessor company, BJ's Wholesale Club, traded as a public company until it was acquired on September 30, 2011 by an investor group led by Leonard Green & Partners and CVC Capital. On July 2, 201

Upgrade to begin using premium research reports and get so much more.

Exclusive reports, detailed company profiles, and best-in-class trade insights to take your portfolio to the next level

Upgrade

Analyst Profile

Chris Graja, CFA

Senior Analyst: Retail

Chris covers the Consumer sector for Argus. He was the #1 Stock Picker in the Household Durables sector, winning the 2019 StarMine U.S. Analyst award from Refinitiv. He was the #1 Stock Picker in Food and Staples Retailing, winning back-to-back U.S. Analyst Awards in 2015 and 2016. He received a prestigious Volunteer of the Year award from the New York Society of Security Analysts in 2000. Prior to Argus, Chris spent 16 years at Bloomberg Financial Markets. He was the Director of Training and a Senior Researcher for Bloomberg’s research division before joining the new Bloomberg magazine as Technical Studies Editor in 1993. He rose to Executive Markets Editor of the publishing group. Chris co-authored the book “Investing in Small-Cap Stocks,” which was published in three U.S. editions, an audio book, and two Chinese editions. Chris earned an MBA from Rutgers University. He is a CFA charterholder.

Read Entire Article

From Twitter

Comments