BJ Stock Forecast & Price Target

BJ's Wholesale Club Holdings reported revenue of $20 billion for FY25, reflecting a year-over-year increase of approximately 2.5%, along with an improved full-year earnings per share (EPS) guidance. The company’s operating margin remained stable at 4.1%, consistent with expectations, while sales momentum is expected to continue, supported by a strong mix of defensive merchandise and an attractive shopping environment. Additionally, the increase in higher-tier membership penetration and the expansion of the "Fresh 2.0" initiative are anticipated to further enhance BJ's competitive position and drive continued member growth.

BJ's Wholesale Club Holdings faces a challenging outlook primarily due to a notable decline in adjusted EBITDA, which fell to $301.4 million, marking a 2.2% decrease year-over-year and revealing potential concerns about ongoing profitability amidst increasing tariffs on general merchandise. Despite achieving a relatively strong digital performance with a 30% increase in digitally enabled comps, overall comparable sales growth lagged, with a modest 1.8% increase excluding fuel, which was below the consensus expectation of 2.3%. Additionally, the company’s gross margin performance may be further impeded by deteriorating general merchandise sales, raising concerns over the sustainability of its financial performance moving forward.