BJ's Wholesale Club Trims Full-Year Outlook

BJ's Wholesale Club Inc. (BJ) shares were falling 2% in Tuesday's premarket action after the retailer adjusted its full-year outlook due to macroeconomic pressure on its customers.

Q2 Net Income and Revenue

The company reported fiscal second-quarter net income of $131.3 million, or 97 cents a share, compared with $144.3 million, or $1.03 a share, in the year-earlier period. On an adjusted basis, BJ's also earned 97 cents a share, down from $1.06 a share a year before, while the FactSet consensus was for 90 cents a share.

Total revenue declined to $4.96 billion from $5.10 billion, missing analyst estimates of $5.18 billion. However, comparable sales (excluding gasoline) saw a rise of 1.1%.

CEO's Statement and Outlook

"Our strong performance in the second quarter reflects our continued gains in membership, traffic, and market share, driven by the great value that we provide our members every day," said Chief Executive Bob Eddy. "We continue to balance gross margins with investments in value and in growing the size and quality of our membership with an eye toward the future."

For the full fiscal year, BJ's now expects a 2% increase in comparable sales (excluding gasoline) and adjusted earnings per share of $3.80 to $3.92. Previously, the company had forecasted 4% to 5% growth in comparable sales excluding gasoline.

CFO's Statement

Chief Financial Officer Laura Felice expressed confidence in the company's ability to maintain momentum in their traffic and market share gains. However, she acknowledged the challenges posed by shifts in consumer behavior driven by the broader macroeconomic environment that BJ's is currently navigating.