Accelerated membership growth, robust traffic gains, and continued increases in market share were all highlights of BJ’s Wholesale Club’s third quarter performance.
While comparable club sales, excluding gas sales, were relatively flat year-over-year (0.1% decrease), digitally enabled comparable sales growth was up 16%, and membership fee income improved 6.6% vs. Q3 2022 to $106.1 million. Over the first nine months, comparable club sales increased by 2.1%.
Total comparable club sales were up 0.3% year-over-year and are down 1.3% over the first nine months of fiscal year 2023.
Gross profit was $902.5 million in the third quarter, which is $34 million more than a year ago. So far for the year gross profit is over $120 million ahead of the 2022 pace.
Net income was up slightly—$130.5 million vs. $129.9 million—year-over-year.
Adjusted EBITDA increased 1% to $274.9 million. For the first nine months of fiscal year 2023, Adjusted EBITDA has improved 4.4% year-over-year.
“Our advantaged model and strong value proposition continue to resonate with our members,” said Bob Eddy, chairman and CEO of BJ’s Wholesale Club. “[Third quarter] gains continue to reinforce the underlying strength of our business and we remain confident in the long-term growth prospects of our company.”
BJ’s Wholesale Club is revising its forecast for comparable club sales to be in the negative 2% to an increase of 1% year-over-year in the fourth quarter and a 1% to 1.8% increase for the year.
“As we look ahead to the rest of the year, we remain confident in our ability to maintain the momentum in our traffic and market share gains due to our unrelenting focus on value,” said Laura Felice, executive vice president and chief financial officer for BJ’s Wholesale Club.