BJ's Wholesale Club Holdings, Inc.

Second-quarter net sales were $6.1 billion, up 15.9% year over year. Total comparable club sales increased 11.9%, and merchandise comparable sales excluding gasoline rose 3.1%; inflation was just under 1 point. Membership fee income increased 9.9% to $136 million, gross profit increased 10.3% to $1.11 billion, adjusted EBITDA increased 14.3% to $347 million, and adjusted EPS was $1.36, up 19.3%. Merchandise gross margin rate declined approximately 20 basis points year over year, SG&A was $851 million, adjusted free cash flow was $266 million versus $87 million last year, and the company ended with net leverage of 0.5 turns. For the full year, BJ's maintained ex-gas comparable club sales guidance of 2% to 3% and raised adjusted EPS guidance to $4.60 to $4.80.

Bob Eddy framed the quarter as broad-based outperformance driven by BJ's value proposition, traffic momentum, membership strength, and disciplined execution. He emphasized that the company is investing in members for long-term lifetime value, not short-term payback, and said the strategic priorities around experience, convenience, and footprint are working. He also highlighted Texas expansion, digital adoption, and category management efforts as early signs of a larger structural growth story.

Laura Felice said the quarter benefited from strong operating performance, especially fuel, and walked through the major financials: $6.1 billion in sales, $1.11 billion in gross profit, $851 million in SG&A, $347 million in adjusted EBITDA, and $1.36 in adjusted EPS. She noted merchandise gross margin rate fell about 20 basis points as the company invested in value, but fuel profit exceeded plan and comp gallons rose 10.5%. She also said adjusted free cash flow was $266 million, inventory per club was up 2% year over year with in-stocks roughly flat, net leverage was 0.5 turns, and the company repurchased $124 million of shares with about $422 million still authorized. She said the full-year EPS raise mainly reflects the strong gas business, while merch margin and price investments will continue to be managed with funding from multiple sources.

Analysts focused on whether price investments tied to tariff refunds can be sustained, how much fuel strength is being reinvested, and what that means for margins; management said it expects to fund continued investments with other initiatives in the back half and does not expect a sharp margin-rate decline. Questions also centered on membership fee income, with management pointing to stronger acquisition, very high renewal performance, and an all-time high in automatic renewal and higher-tier penetration. Analysts asked about Texas and new club maturity, and management said clubs typically reach maturity over 3 to 5 years, with early Texas results tracking ahead of plan and strong gas and membership engagement.