Q2 2026 BJ's Wholesale Club Holdings Inc Earnings Call Transcript
Key Points
- Net sales up nearly 16% year-over-year with merchandise comps growing 3.1%, marking the 18th consecutive quarter of traffic growth and 15th consecutive quarter of market share gains.
- Membership reached a new milestone of 8.5 million members, with membership fee income growing nearly 10% year-over-year and higher-tier penetration at an all-time high of 43%.
- Fuel business outperformed with comp gallons up 10.5%, significantly outpacing the industry decline of approximately 5%, and fuel profit dollars exceeded plan.
- Digital-enabled comp sales grew 30% in the quarter, with two-year stacked comp growth of 64%, driven by strong adoption of BOPIC, same-day delivery, and ExpressPay.
- New club expansion, particularly in Texas, is performing well with membership tracking more than 30% ahead of plan and gas volumes in the top 30% of the chain.
- Adjusted EPS of $1.36 was up 19.3% year-over-year, and the company raised its full-year EPS guidance to $4.60-$4.80.
- Merchandise gross margin rate decreased approximately 20 basis points year-over-year due to continued investments in value for members.
- The company expects membership fee income growth to moderate throughout the year as the impact of last year's fee increase normalizes.
- Inflation was just under a point in the quarter, which could pressure consumer spending and impact future sales.
- The company faces a difficult comparison in Q4 due to last year's port strikes and general merchandise build, which may impact comp sales.
- SG&A expenses increased in absolute dollars due to costs associated with opening new clubs and gas stations, partially offset by a sale-leaseback gain.
- The K-shaped economy persists, with the majority of growth driven by higher-income members, indicating potential vulnerability in lower-income segments.
Hello, everyone. Thank you for joining us, and welcome to BJ's Wholesale Club quarter two 2026 earnings conference call. (Operator Instructions)
I will now hand the conference over to Diana Rashkow, VP of Investor Relations. Diana, please go ahead.
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Good morning, and welcome to BJ's second quarter fiscal 2026 earnings call. Joining me today are Bob Eddy, Chairman and Chief Executive Officer; Laura Felice, Chief Financial Officer; and Bill Werner, Executive Vice President, Strategy and Development.
Please remember that we may make forward-looking statements on this call that are based on our current expectations. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from what we say on this call. Please see the Risk Factors section of our most recent SEC filings for a description of these risks and uncertainties.
Please also refer to today's press release and
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