If BJ’s Wholesale Club can repeat 2022, it can call it a billion-dollar streak.
For the first time in its history, BJ’s surpassed $1 billion in Adjusted EBITDA in FY 2022. Bob Eddy, president and CEO of the wholesale club, credits a membership base that is stronger than ever, a continued focus on value and a growing digital presence behind the success. BJ’s tenured renewal rate hit an all-time high of 90%.
In the fourth quarter total comparable club sales increased 9.8% vs. fourth quarter 2021 and gross profit reached just over $903 million, which is about $100 million more than a year ago. For FY 2022, total comparable club sales were up 13.4% vs. FY 2021 and gross profit was $3.43 billion, which was just under $40 billion more than the last fiscal year.
“We remain confident that our advantaged business model, continued focus on executing our strategic priorities and commitment to delivering great value to our members will continue to drive strong results for our business,” said Laura Felice, executive vice president and CFO for BJ’s Wholesale Club. “We look ahead to fiscal 2023 with the understanding that there is still significant uncertainty in the macroeconomic backdrop as well as its influence on the U.S. consumer.”
BJ’s Wholesale Club is predicting 4-5% comparable club sales in 2023 and for membership income to increase 5-6% year-over-year. The retailer believes single-digit growth will continue in the coming years.
In early February BJ’s Wholesale Club announced it was teaming with MasterCard and Capital One to offer store-branded credit cards that will enable BJ’s shoppers to earn never-expiring rewards and receive gas discounts.
With the BJ’s One+ Mastercard, which is replacing the current BJ’s Perks Elite Mastercard, shoppers will earn 5% back on most BJ’s purchases and receive gas savings of 15 cents a gallon when using the credit card at BJ’s Gas.