BJ's (BJ) Q2 2025 Earnings Call Transcript

President and Chief Executive Officer — Robert W. Eddy Executive Vice President, Chief Financial Officer — Laura L. Felice Executive Vice President, Chief Operating Officer — William C. Werner Robert W. Eddy: Good morning, everyone. Thanks for joining us today to discuss our second quarter results. Our business delivered solid results in Q2 as we continued to provide our members unbeatable value along with exceptional convenience, in an environment that remains very dynamic. Our commitment to taking care of the families who depend on us is more than just a slogan, and we view the performance this quarter as demonstrable proof of the power and relevance of our business model in a volatile backdrop. Now more than ever, we will maintain an unwavering focus on the priorities that will drive value for our members both now and into the future. Our Q2 results included comparable club sales, excluding gas, of 2.3%, led by our 14th consecutive quarter of traffic growth and our 11th consecutive quarter of market share growth. Our membership base continues to grow, and I m happy to announce that we reached the 8 million member milestone this quarter, representing 55% growth in our membership base since our IPO 7 years ago. Our digital business continues to shine and represents a generational unlock for us as we deliver value to our members how and where they want. This business grew 34% during the quarter. These results were solid in the face of market environment influenced by both macro uncertainty as well as the unseasonably wet and cold weather at the start of the quarter, especially in our core Northeast and Mid-Atlantic markets. We saw our business accelerate as the weather improved. Our Perishables Grocery and Sundries division led our Q2 performance with healthy 3% comp growth and a 2-year stack that held steady with Q1. The investments we ve made in both Fresh 2.0 and our category management process have driven continued share gains across our consumables franchise. We saw the most strength in perishable categories like dairy, meat and fresh produce. The investments we ve made in our Fresh 2.0 capabilities continue to deliver value for the company and our members, and we re building on these gains as we expand our efforts to our meat and seafood franchises. Our GM and services business declined 2.2% on a comp basis in the quarter, with the results being impacted by both the weather and macro factors that I noted earlier. Certain higher-ticket discretionary categories in GM such as recreation and lawn and garden experienced double-digit declines in comp sales. Our team was quick to react to these early quarter trends, and we aggressively managed orders and markdowns to ensure we exited the quarter in a prudent inventory position. I ll share more about our inventory results and strategy later in the call. Our GM business did show bright spots, validating the fruits of our transformation efforts. For example, our apparel business grew comp in the low single digits despite the weather headwinds, and further built on the positive trend in this business with a 2-year comp stack in the high single digits. As we step out of the discrete quarterly results and evaluate the state of our membership base more broadly, we did see members across all income levels turn a bit more cautious during the quarter, driven by the uncertain macro environment. Despite this change in consumer sentiment, our members continue to count on BJ s and total spending increased in total and on a per member basis, with low-income households demonstrating incredible loyalty. This is a clear validation of our value proposition at a time when families are under a seemingly endless cost pressure. In what is an exceptionally dynamic environment, I m proud of how our teams are laser-focused on controlling what we can control and continuing to execute our strategy with discipline. We are improving member loyalty, giving our members an unbeatable shopping experience, delivering value conveniently and growing our footprint. These are the pillars that will drive long-term value creation, and we made further progress this quarter. Let me now take a minute to provide an update on each. We continue to put up robust results in membership growing total member counts, all while maintaining our strong renewal rates. Reaching the 8 million member milestone this quarter is a significant achievement with growth coming not only from the new clubs that we ve added to our chain but also from our legacy comp clubs. Growing the number of members and retaining them at high levels is an impressive feat, but we are also improving the member mix, signing up a greater percentage of higher tier members who qualify for our best-in-class rewards, both in the club and at the pump. In the second quarter, higher tier membership penetration continued to set records, improving 50 basis points sequentially to an all-time high of 41%, and we continue to see more upside going

BJ's (BJ) Q2 2025 Earnings Call Transcript

Key takeaways

Also covered by

BJ's (BJ) Q2 2025 Earnings Call Transcript

Key takeaways

Also covered by

More in business