BJs Wholesale Club | 10-Q: FY2026 Q3 Revenue Beats Estimate at USD 5.348 B

Revenue: As of FY2026 Q3, the actual value is USD 5.348 B, beating the estimate of USD 5.339 B.

EPS: As of FY2026 Q3, the actual value is USD 1.15, beating the estimate of USD 1.0775.

EBIT: As of FY2026 Q3, the actual value is USD 218.35 M.

Segment Revenue

Net Sales: $5,221,866 for the third quarter of fiscal year 2025, a 4.8% increase from $4,984,385 in the third quarter of fiscal year 2024. For the first nine months of fiscal year 2025, net sales were $15,511,867, a 4.2% increase from $14,883,793 in the first nine months of fiscal year 2024.
Membership Fee Income: $126,297 for the third quarter of fiscal year 2025, a 9.8% increase from $114,979 in the third quarter of fiscal year 2024. For the first nine months of fiscal year 2025, membership fee income was $370,019, a 9.0% increase from $339,485 in the first nine months of fiscal year 2024.

Operational Metrics

Operating Income: $218,351 for the third quarter of fiscal year 2025, compared to $229,383 in the third quarter of fiscal year 2024. For the first nine months of fiscal year 2025, operating income was $638,526, compared to $593,813 in the first nine months of fiscal year 2024.
Net Income: $152,050 for the third quarter of fiscal year 2025, compared to $155,748 in the third quarter of fiscal year 2024. For the first nine months of fiscal year 2025, net income was $452,523, compared to $411,755 in the first nine months of fiscal year 2024.
Gross Margin: Merchandise gross margin rate remained flat in the third quarter of fiscal year 2025 compared to the prior year period. For the first nine months of fiscal year 2025, merchandise gross margin rate increased by 10 basis points compared to the first nine months of fiscal year 2024.
Selling, General and Administrative Expenses: $788,151 for the third quarter of fiscal year 2025, compared to $733,580 in the third quarter of fiscal year 2024. For the first nine months of fiscal year 2025, SG&A expenses were $2,335,389, compared to $2,205,674 in the first nine months of fiscal year 2024.
Interest Expense, Net: $10,309 for the third quarter of fiscal year 2025, compared to $12,593 in the third quarter of fiscal year 2024. For the first nine months of fiscal year 2025, interest expense was $31,801, compared to $39,299 in the first nine months of fiscal year 2024.
Provision for Income Taxes: $55,992 for the third quarter of fiscal year 2025, compared to $61,042 in the third quarter of fiscal year 2024. For the first nine months of fiscal year 2025, provision for income taxes was $154,202, compared to $142,759 in the first nine months of fiscal year 2024.

Cash Flow

Net Cash Provided by Operating Activities: $639,101 for the first nine months of fiscal year 2025, compared to $628,955 in the first nine months of fiscal year 2024.
Net Cash Used in Investing Activities: - $501,185 for the first nine months of fiscal year 2025, compared to - $427,553 in the first nine months of fiscal year 2024.
Net Cash Used in Financing Activities: - $121,069 for the first nine months of fiscal year 2025, compared to - $203,578 in the first nine months of fiscal year 2024.

Unique Metrics

Comparable Club Sales: Increased by 1.1% in the third quarter of fiscal year 2025 and by 0.8% in the first nine months of fiscal year 2025.
Merchandise Comparable Club Sales: Increased by 1.8% in the third quarter of fiscal year 2025 and by 2.6% in the first nine months of fiscal year 2025.

Future Outlook and Strategy

Core Business Focus: The company plans to continue investing in member engagement, marketing, and digital strategies. Additionally, the company anticipates the annual membership fee increase will positively impact membership fee income for the remainder of fiscal year 2025.
Non-Core Business: The company is focused on expanding its club footprint and enhancing its digital capabilities, including BOPIC, curbside pickup, same-day delivery, and other digitally enabled shopping options.
Priority: The company aims to drive profitable growth across its merchandise assortment and manage the business to achieve higher cash flows from operating activities.