BJ Stock Forecast & Price Target

BJ's Wholesale Club Holdings reported a revenue of $20 billion for FY25, reflecting a year-over-year growth of approximately 2.5%, and demonstrated solid guidance with full-year comparable store sales and earnings per share projections improved. The company's strategic focus on a defensive merchandise mix and the expansion of its "Fresh 2.0" initiative is expected to bolster market share and drive ongoing membership growth, as evidenced by an increase in both total members and higher-tier membership penetration. Despite a 7.4% rise in selling, general, and administrative expenses, BJ's operating margin held steady at 4.1% and the earnings per share estimate for FY26 was raised to $4.65, indicating confidence in its financial trajectory and operational efficiency.

BJ's Wholesale Club Holdings has experienced a decline in adjusted EBITDA, reporting $301.4 million, which is a decrease of 2.2% year-over-year and lower than the previous year's figure of $308.3 million. Additionally, the company's comparable sales (comps) excluding fuel were 1.8%, falling short of the consensus estimate of 2.3%, which further raises concerns regarding its sales performance amid ongoing inflationary pressures and tariffs affecting general merchandise. The company's outlook is further dimmed by a projected downturn in general merchandise sales which may negatively impact gross margin, combined with lower sales from fuel, contributing to a decrease in overall EBITDA.