BJ's Wholesale Club to Raise Membership Fees for First Time in Seven Years, Raises FY Guidance

Dow Jones11-21 20:17

By Sabela Ojea

BJ's Wholesale Club said it is raising its membership fees for the first time in seven years, four months after Costco's increase, and raised its outlook for the fiscal year.

The Marlborough, Mass.-based retailer on Thursday said its membership will cost $60 per year starting Jan. 1, up from the current annual fee of $55.

BJ's Club+ membership fee will also be more expensive next year with an annual cost of $120 a year, representing a $10 increase.

"Today's announcement allows the company to invest in an even stronger value proposition for its 7.5 million member base, which continues to grow," the company said. "Since the last membership fee increase, the company has transformed its business with a relentless focus on delivering value to members."

BJ's Wholesale Club's announcement regarding its membership fee comes about four months after competitor Costco Wholesale raised its membership, also for the first time since 2017, but effective Sept. 1.

It also follows the company's earnings for its fiscal third quarter, which saw profit and revenue growth.

BJ's posted a net profit for the three months ended Nov. 2 of $155.7 million, or $1.17 a share, compared with $130.5 million, or 97 cents a share, for the same period a year earlier.

Stripping out one-time items, the company's earnings per share came in at $1.18. Analysts polled by FactSet had forecast adjusted earnings of 93 cents per share.

Sales rose to $4.98 billion from $4.82 billion a year earlier, missing the $5.12 billion expected by Wall Street, according to FactSet. At the same time, same-store sales increased 1.5%, while FactSet was expecting a 1.9% rise. Excluding gasoline, same-store sales rose 3.8%.

Overall during the period, the company opened three new clubs and four new gas stations, BJ's said.

For the fourth quarter, BJ's expects adjusted earnings in the range of 78 cents to 88 cents, bringing the fiscal 2024 outlook to $3.90 to $4.00, up from a prior range of $3.75 to $4.

The company also forecasts same-store-sales, excluding sales, to increase 2.5% to 3%, taking fiscal 2024's growth guidance to 2.3% to 2.4%. BJ's had most previously guided growth in same-store sales excluding gasoline of 1% to 2%

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

November 21, 2024 07:17 ET (12:17 GMT)

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BJ's Wholesale Club to Raise Membership Fees for First Time in Seven Years, Raises FY Guidance

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