BJ's Wholesale slides as Q3 sales miss forecasts, holiday outlook see muted store traffic

BJ's, the smaller bulk-discount rival to Costco, joined a growing list of major retailers forecasting muted holiday sales activity.

Nov 17, 2023 - 19:30

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BJ's Wholesale slides as Q3 sales miss forecasts, holiday outlook see muted store traffic

BJ's Wholesale Club (BJ) - Get Free Report shares moved lower in early Friday trading after the smaller bulk-discount rival to Costco (COST) - Get Free Report posted weaker-than-expected third quarter sales and forecast muted holiday season traffic.

BJ's said adjusted earnings for the three months ending on October 28 came in at 98 cents per share, down a penny from the same period last year and just 3 cents ahead of the Street consensus forecast. Group revenues, however, BJ's said, were essentially flat to last year at $4.818 billion and missed analysts' estimates of a $4.9 billion tally.

Same store sales that don't include gasoline receipts were also flat to the prior year, BJ's said, compared to forecasts of a 1% gain, while membership fees rose 6.6% to $106.1 million.

Looking into the 2023 financial year, which ends in January, BJ's reiterated its forecast of earnings in the region of $3.80 to $3.92 per share, with holiday quarter comparable sales likely to range from a decline of 2% to an increase of 1%.

“Our advantaged model and strong value proposition continue to resonate with our members. During the third quarter, we posted accelerating membership growth, robust traffic gains and continued increases in market share," said CEO Bob Eddy. "These gains continue to reinforce the underlying strength of our business and we remain confident in the long-term growth prospects of our company.”

BJs shares were marked 4.6% lower in pre-market trading immediately following the earnings release to indicate an opening bell price of $64.50 each, a move that would nudge the into negative territory for the year.