Welcome to BJ’s Wholesale Club Holdings, Inc. Second-Quarter Fiscal 2024 Earnings Conference Call
Good morning, and thank you for joining us today for BJ’s second-quarter fiscal 2024 earnings call. We have with us Bob Eddy, Chairman and Chief Executive Officer; Laura Felice, Chief Financial Officer; and Bill Werner, Executive Vice President, Strategy, and Development.
During this call, we will discuss certain forward-looking statements based on our current expectations. These statements are subject to various risks and uncertainties, and our actual results may differ materially. Please refer to our recent SEC filings for a detailed review of these risks and uncertainties. Additionally, we’ll discuss non-GAAP financial measures, which we believe provide useful information for investors. A reconciliation to GAAP measures can be found in today’s press release and investor presentation on our website.
Second Quarter Fiscal 2024 Performance Highlights
Our second quarter showcased the robust nature of our business model, with significant strengths noted in membership growth, digital business expansion, and a solid increase in our real estate pipeline. We saw a 2.4% growth in comparable club sales excluding gas sales, marking an important quarter fueled by our commitment to delivering unparalleled value to our members.
We are delighted to report a milestone 9% growth in membership fees, signifying the largest member count increase since the pandemic’s beginning. Our digital initiatives have seen incredible traction, further positioning us for a promising future. Additionally, the quarter brought about a notable acceleration in traffic, contributing significantly to our comp, and we continued to gain market share both inside our clubs and at our gas stations.
Our focus remains steadfast on our long-term growth initiatives, despite the considerable investments made today. These strategic moves are laying the groundwork for future success, one we are eagerly looking forward to with optimism.
Division Performance
- Perishables, Grocery, and Sundries: Nearly saw 3% comp growth, led by our traction in the perishables business, reinforcing our efforts to bolster our offerings in this area.
- General Merchandise: Improved sequentially from the first quarter, showcasing over 1% comp growth with notable success in seasonal categories due to favorable weather conditions and exceptional value offerings.
Strategic Focus and Future Outlook
Our unwavering dedication to four strategic priorities—improving member loyalty, enhancing the shopping experience, delivering value conveniently, and footprint growth—continues to drive our actions. The quarter reflected strong membership growth; propelled by our ability to increase the size and quality of our membership, driving robust membership fee income growth.
We remain committed to our transformative initiatives across the business and believe our focused investments today will lay a strong foundation for our future growth. Our real estate strategy is on track, with plans to open 11 new clubs in the next six months, demonstrating our confidence in the sustainable growth of our business model.
Conclusion
Our team’s dedication has been paramount in navigating the dynamic retail landscape, and we are grateful for their tireless efforts. We are optimistic about our future, guided by solid strategic priorities that prioritize long-term success over short-term gains. Thank you for your continued support of BJ’s Wholesale Club, and we look forward to sharing our progress in the quarters to come.
With that, we conclude today’s earnings call. We appreciate your interest and support in BJ’s Wholesale Club and look forward to updating you on our continued progress.
