BJ's Wholesale Club Holdings, Inc.

BJ's reported first-quarter fiscal 2026 net sales of $5.5 billion, up nearly 10% year over year. Total comparable club sales increased 6.3%, and merchandise comparable sales excluding gasoline rose 1.5%. Membership fee income increased about 10% to approximately $132 million, adjusted EBITDA rose about 4% to $298 million, and adjusted EPS was $1.10, down year over year due to lapping a prior-year tax benefit. Merchandise gross margin decreased about 10 basis points year over year, or 60 basis points excluding tariff refund benefits, and SG&A was approximately $806 million. Fuel volumes were strong, with comparable gallons up nearly 8%. For the full year, BJ's maintained guidance for comparable club sales excluding gasoline of 2% to 3% and adjusted EPS of $4.40 to $4.60. Management also said Q2 through Q4 core comps should be in the 2% to 3% range, and that there will be some additional tariff dollars flowing into Q2.

Bob Eddy framed the quarter as a solid start built on value, membership strength, and disciplined execution. He emphasized that BJ's is taking share through gas, convenience, and pricing, while also investing in assortment changes, digital tools, and new club expansion. His tone was confident and constructive, but he repeatedly noted that consumers remain pressured, especially lower-income households, which reinforces BJ's focus on value and offense.

Laura Felice highlighted the key financial drivers: net sales of $5.5 billion, total comps up 6.3%, merchandise comps up 1.5% excluding gas, adjusted EBITDA of $298 million, and adjusted EPS of $1.10. She said merchandise gross margin was down 10 bps year over year, or down 60 bps excluding tariff refund benefits, while SG&A was about $806 million and improved as a percentage of sales. She also noted inventory was up 6.5% year over year in absolute terms because of new clubs, buybacks totaled approximately $207 million, and about $545 million remained under the authorization. On guidance, she said the company is maintaining full-year outlook and expects more tariff dollars in Q2, while watching fuel costs and freight.

Analysts focused on tariff refunds, merchandise margin cadence, Texas opening traction, gas-driven traffic, and whether BJ's would continue investing in price. Management said the tariff refunds were used to return value to members and that the company will continue to invest in price gaps, with more tariff dollars likely in Q2. On Texas, management said membership is running 33% ahead of plan and ExpressPay penetration is the highest in the chain there. They also said Q1 was more ticket-driven than traffic-driven, and confirmed that Q2 through Q4 core comps are still expected to run 2% to 3%.