Club retailer BJ’s Wholesale Club Holdings has increased its market share

The chain of club stores BJ’s Wholesale Club Holdings Inc. (BJ) exceeded analysts’ forecasts in the second quarter of the fiscal year 2022. In addition, the company seems to have increased its market share slightly. Sales of BJ’s Wholesale Club Holdings in the second quarter exceeded $5 billion, which is 22% more year-on-year. Adjusted earnings per share amounted to $1.06, while Wall Street forecast a figure of no more than $0.8 per share. Comparable sales of BJ’s Wholesale Club Holdings increased by 20%, but this was primarily due to increased gasoline prices. 

But even excluding fuel sales, comparable sales increased by 7.6% year-on-year. A joyous moment was income growth from membership fees, which increased by 11% yearly. According to management, the increase in the number of customers led to an unprecedented increase in traffic last quarter. In addition, the network seems to have managed to expand its market share. However, it is still unclear why this expansion occurred – due to a reduction in the percentage of competitors Costco and Sam’s Club or the transition of customers from other grocery stores. 

It should note that BJ’s Wholesale Club Holdings remained a regional club retailer for a long time. Still, in recent quarters the company’s share in the US market continues to increase, and the retailer is in the same row as its major competitors. According to the whole year’s results, the management of BJ’s Wholesale Club Holdings predicts sales growth of 4-5%. Earnings could range from $3.5 to $3.6 per share, which is 10% better than the company previously forecast. Over the next five years, average income growth will be closer to 7-8% per year.