BJ’s Wholesale Club, an operator of membership warehouse clubs, has reported a 4.4% decrease in net income to $111.01m in the first quarter (Q1) of fiscal 2024 (FY24), compared with $116.07m in Q1 FY23.
The company’s earnings per diluted share also saw a slight decrease to $0.83, down 2.4% from $0.85 in Q1 FY23.
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Its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter were reported at $236.38m, a decline from $251.53m in Q1 FY23.
The company’s income from continuing operations for the quarter ending 4 May 2024 dropped 4.3% to $111.01m, from $115.98m in the same period of the previous year.
However, BJ’s Wholesale Club’s total revenue for the quarter was up by 4.1%, reaching $4.91bn, and net sales increased by 4.0% to $4.80bn.
The company experienced a 1.6% year-on-year increase in comparable club sales. Excluding gasoline sales, the rise was more modest at 0.6%, attributed to robust traffic and unit growth.
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By GlobalDataDigitally enabled sales saw a significant jump, with a 21% increase compared to the previous year.
During the quarter, membership fee income for BJ’s Wholesale Club rose by 8.6% to $111.4m. The company’s gross profit edged up to $883.4m in Q1 FY24, supported by this growth.
However, merchandise gross margin rate, excluding gasoline sales and membership fee income, decreased by 50 basis points from the previous year, primarily due to lower ancillary income.
BJ’s Wholesale Club chairman and CEO Bob Eddy said: “During the first quarter, we delivered strong increases in membership, traffic and unit volumes. This resulted in revenue growth and market share gains in our clubs and at our gas stations.
“Our merchandising improvements and digital conveniences, grounded in delivering compelling value, are resonating with our members.
“We are also growing our footprint and remain on track for 12 new club openings this year. I am proud of our team members for their continued dedication to our purpose of taking care of the families who depend on us. We remain confident in the long-term growth prospects of our company.”
