In a strong performance that beat market expectations, BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) reported third-quarter adjusted earnings per share of $1.18, notably higher than the anticipated 91 cents.
The company's financial health was further evidenced by its quarterly revenues which equalled analyst projections at $5.10 billion. BJ's stock price is moving up on the news, currently more than 7% green on the day, having earlier hit new 52 week, and all-time-highs at $92.78.
The company's success this quarter was not solely financial. BJ's Wholesale saw a year-over-year comparable club sales increase of 1.5%, and when excluding gasoline, this rise stood at an impressive 3.8%. A particularly strong aspect of their performance came from their digital platforms. BJ's reported a 30.0% growth in digitally enabled comparable sales, which underlines a significant two-year stacked comp growth of 47.0%.
Membership at BJ's Wholesale has proven to be more valuable as evidenced by an 8.4% growth in membership fees, reaching $115 million. Concurrently, the company enjoyed a surge in adjusted EBITDA, up by 13.5% to $308.292 million.
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Looking ahead, BJ’s Wholesale provided guidance for the next quarter that maintains their positive trajectory. The company forecasts an adjusted EPS of between $0.78 and $0.88 for the fourth quarter. Further into the future, for FY2024, they anticipate an adjusted EPS ranging between $3.90 and $4.00. In a decisive move, BJ's Wholesale has also signaled confidence in its future by launching a new share repurchase program. This program authorizes the repurchase of up to $1.0 billion of its outstanding common stock and will remain active until January 2029.
The company's performance and forward-thinking strategies have inspired investor confidence. Prior to the market opening, BJ's Wholesale Club's shares were trading up by 2.67% at $87.99. This uptick is not only a reflection of the strong quarterly outcome but it also suggests trust in the company's prospective plans and financial health.
BJ's Wholesale Club has demonstrated resilience and growth in a challenging economic climate, marked by its potent blend of in-store and online sales, robust membership growth, and a solid outlook for the near future.
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