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05/19/2022

BJ’s sees strong results in Q1

Dan Berthiaume
Senior Editor, Technology
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BJ’s exterior
BJ’s Wholesale Club had a successful first quarter of 2022.

BJ’s Wholesale Club Holdings Inc. has a lot to be happy about with its financial performance in the first quarter of fiscal 2022.

The warehouse club retailer’s net sales rose 16% to $4.4 billion in the quarter ended April 30, 2022 from $3.78 billion in the year-earlier period. Including 12% growth in membership fee sales to $96.6 million from $86.4 million, net sales rose 16% to $4.5 billion from $3.87 billion.

Total same-store sales increased by 14.4% in the first quarter of fiscal 2022 compared to the first quarter of fiscal 2021. Excluding the impact of gasoline sales, total same-store sales increased by 4.1% in the first quarter of fiscal 2022 compared to the first quarter of fiscal 2021.

Net income climbed 38% year-over-year, to $112.4 million from $81.6 million.

Other results included:

  • Gross profit increased to $790.6 million in the first quarter of fiscal 2022 from $726.7 million in the first quarter of fiscal 2021. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, decreased 3% from the first quarter of fiscal 2021. BJ’s said merchandise margins were impacted by increased freight costs and tactical investments in inflationary categories.
  • Selling, general and administrative expenses ("SG&A") increased to $635.4 million in the first quarter of fiscal 2022, compared to $599.9 million in the first quarter of fiscal 2021. According to BJ’s, the increase was primarily driven by increased labor costs as a result of 2021 wage investments, occupancy costs as a result of new store openings, and acquisition and integration expenses related to the acquisition of assets from Burris Logistics.
  • Operating income increased to $150.3 million, or 3.3% of total revenues, in the first quarter of fiscal 2022 compared to $126.3 million, or 3.3% of total revenues, in the first quarter of fiscal 2021.
  • Adjusted EBITDA increased 9.1% to $220.8 million in the first quarter of fiscal 2022 compared to $202.4 million in the first quarter of fiscal 2021.

On May 2, 2022, the company completed its acquisition of four distribution centers and related private transportation fleet from Burris Logistics, bringing its end-to-end perishable supply chain in-house. 

“We are pleased with our performance in the first quarter and remain optimistic that the strength of our core business will continue to drive long-term growth,” said Laura Felice, executive VP, CFO, BJ's Wholesale. “Our fiscal year 2022 earnings per share outlook of flat year-over-year remains unchanged.”

“Our performance in the first quarter was strong, as gains in member traffic underscored the value we provide. Our business model remains more relevant than ever in the current inflationary environment,” said Bob Eddy, president and CEO, BJ’s Wholesale Club.

“We also continued to build on the transformational gains we have driven over the last two years,” said Eddy. “Our membership has never been stronger. We reached 6.5 million members in the first quarter, which serves as a testament to the value that we consistently deliver to our members. Our digital business remains a key competitive advantage. We’re quickly expanding our footprint and we recently closed the acquisition of our perishable distribution network, which will support our future growth efforts and drive long-term shareholder value.”

Headquartered in Westborough, Mass., BJ's Wholesale Club Holdings Inc. is a leading operator of membership warehouse clubs in the Eastern U.S. The company currently operates 229 warehouse club stores and 159 BJ's Gas locations in 17 states.