How Declining Retail Fuel Prices Help Explain BJ’s Stock Hit Friday

Shares of BJ’s Wholesale Club Holdings (BJ) sank 8% Friday after the member-only warehouse retailer’s second-quarter comparable club sales unexpectedly slipped.

The Marlborough, Mass.-based company reported adjusted earnings per share of $1.14 on revenue that increased 3.4% year-over-year to $5.38 billion. Analysts surveyed by Visible Alpha had expected $1.09 and $5.49 billion.

BJ’s comparable club sales decreased by 0.3% “due to declining retail prices of fuel,” it said. Analysts had expected comparable club sales to rise about 2.4%. Excluding the impact of gasoline, comparable club sales increased by 2.3%, also below consensus projections.

Member count grew to a record 8 million and membership fee income rose 9% to $123.3 million.

BJ’s Lifts, Narrows Full-Year Adjusted EPS Projection

BJ’s narrowed and raised its fiscal 2025 adjusted EPS outlook to a range of $4.20 to $4.35 from the prior $4.10 to $4.30. “We are pleased with the performance of business year to date and are confident in the outlook for the back half,” CFO Laura Felice said.

Despite today’s declines, BJ’s shares remain nearly 10% higher this year.