BJ’s Wholesale Club (BJ) Beats Q3 2025 Earnings, Raises Profit Outlook as Digital and Membership Growth Accelerate

BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) reported fiscal third‑quarter 2025 results today that topped Wall Street profit expectations, nudged revenue higher, and prompted management to raise full‑year guidance as digital sales and membership income continued to climb. ^[1]

Shares of BJ’s Wholesale Club traded around $90.6 early Friday afternoon, roughly flat to slightly lower on the day after opening higher in pre‑market trading, when the stock climbed about 2% to $92.40 on the earnings news. ^[2]

Q3 2025 at a glance: earnings beat, modest sales growth

BJ’s fiscal third quarter covered the 13 weeks ended November 1, 2025. Management emphasized “continued strength in membership” and solid traffic, even as profit came in slightly below last year’s level on a GAAP basis. ^[3]

Key Q3 fiscal 2025 numbers

Total revenue: ~$5.35 billion, up roughly 4.9% year over year, in line with analyst expectations. ^[4]
Net sales: about $5.22 billion, up 4.8% from the same quarter a year ago. ^[5]
GAAP EPS:$1.15, down from $1.17 last year.
Adjusted EPS:$1.16, down slightly from $1.18 in Q3 2024 but ahead of consensus estimates around $1.09–$1.13. ^[6]
Net income: about $152.1 million, versus $155.7 million a year earlier. ^[7]
Adjusted EBITDA: approximately $301 million, down a little over 2% year over year. ^[8]

Comparable club sales — a critical retail metric — were solid but not spectacular:

Total comparable club sales:+1.1% year over year.
Comps excluding gasoline:+1.8%, with a two‑year “stack” of +5.5%, showing cumulative growth despite a tougher consumer backdrop. ^[9]

The modest profit decline largely reflects higher labor, occupancy, advertising and depreciation expenses tied to new club and gas station openings, as well as a roughly $20 million benefit from legal settlements in the prior‑year quarter that did not repeat. ^[10]

Membership and digital channels remain the growth engine

If sales growth was steady rather than spectacular, the story was more impressive in BJ’s membership and digital businesses — areas that management repeatedly highlights as long‑term differentiators.

Membership fee income: nearly double‑digit growth

Membership fee revenue rose 9.8% year over year to about $126.3 million in Q3. ^[11]
Year‑to‑date membership fee income is up about 9%, supported by:
- Strong new member acquisition,
- High renewal rates,
- Increased penetration of higher‑tier memberships,
- A membership fee increase that took effect in January 2025. ^[12]

Healthy membership growth is crucial for BJ’s economics: fees are high‑margin, recurring revenue that help offset thin merchandising margins typical in the warehouse‑club model.

Digital momentum: 30% growth in digitally enabled comps

BJ’s also underscored the ongoing shift toward digitally enabled shopping — including buy‑online‑pick‑up‑in‑club, same‑day delivery and curbside services.

Digitally enabled comparable sales increased about 30% in the quarter, with a 61% two‑year stacked comp, reflecting rapid adoption of these services. ^[13]

Seeking Alpha noted that the stock’s initial move higher Friday morning was driven in part by this digital strength, alongside the earnings beat and raised outlook. ^[14]

For investors, this digital growth is important: it positions BJ’s more competitively against warehouse‑club rivals and big‑box retailers that have poured money into omnichannel fulfillment.

BJ’s raises full‑year 2025 outlook

On the back of the stronger‑than‑expected quarter, management raised FY 2025 adjusted EPS guidance and reiterated its investment in growth.

For the fiscal year ending January 31, 2026, BJ’s now expects: ^[15]

Comparable club sales (ex‑gas):+2.0% to +3.0% year over year.
Adjusted EPS:$4.30 to $4.40, up from prior guidance of $4.20 to $4.35.
Capital expenditures: around $800 million, funding new clubs, gas stations and ongoing remodels.

RTTNews and Nasdaq highlighted that the new EPS range sits slightly above the $4.33 full‑year earnings that analysts on average had been expecting, signaling management’s increased confidence even as they modestly trimmed the high end of their comp‑sales outlook. ^[16]

CFO Laura Felice described the year‑to‑date performance as “solid results in a volatile backdrop,” stressing that the company is focused on profitable growth and disciplined capital deployment. ^[17]

Expansion, cash flow and share repurchases

BJ’s continues to balance growth investments with shareholder returns.

The company is on track to add seven new clubs in the fourth quarter of fiscal 2025, supporting its expansion footprint beyond its historical Northeastern core. ^[18]
During Q3, BJ’s repurchased about 905,000 shares for approximately $87 million; year‑to‑date, it has bought back roughly 1.3 million shares for around $135 million, with $866 million still remaining on its authorization. ^[19]
ChartMill notes that BJ’s maintains a healthy balance sheet, with cash and cash equivalents of roughly $45 million and strong operating cash flow of about $639 million over the first nine months of the fiscal year. ^[20]

Those numbers suggest BJ’s has room to continue investing in new clubs and digital capabilities while also buying back shares, as long as cash generation stays robust.

Stock reaction: pre‑market pop, mixed intraday trading

Market reaction to the report was cautiously positive but somewhat volatile:

Reuters reported that BJ shares jumped about 2% in pre‑market trading to $92.40, after the company beat profit estimates and lifted its full‑year outlook. ^[21]
As of early afternoon, real‑time quote data showed the stock around $90.6, down less than 1% on the day, reflecting broader market weakness in a week where major U.S. indexes have sold off. ^[22]
Year to date, BJ’s stock is up roughly 1–1.5%, slightly lagging the broader market but ahead of many discretionary retail peers, according to Reuters and MarketWatch snapshots. ^[23]

In short: the earnings beat and raised outlook were well‑received, but investors are still weighing slower comparable‑sales growth and macro pressures alongside generally risk‑off sentiment in equities.

What Wall Street is saying: ratings and targets

Analyst sentiment remains broadly constructive:

Data compiled by LSEG/Reuters shows 14 of 23 analysts rating BJ’s stock a “buy” or better, with 9 at “hold” and a median price target around $115. ^[24]
MarketBeat pegs the stock at an overall “Moderate Buy”, with an average target near $111, implying meaningful upside from current levels. ^[25]
Prior to the print, a Benzinga earnings preview highlighted consensus expectations for Q3 EPS of $1.09 and noted that guidance — more than the headline “beat” or “miss” — would likely drive the stock’s move. ^[26]

With BJ’s now guiding full‑year EPS slightly above those prior expectations and reaffirming its investment program, the debate on the Street is likely to focus on whether modest comp growth can sustain high‑teens to low‑20s valuation multiples.

Institutional flows: hedge funds shuffle positions

Beyond the earnings tape, institutional ownership remains very high, with recent filings showing active repositioning:

Dynamic Technology Lab Private Ltd, a quantitative hedge fund, recently initiated a new position in BJ’s worth roughly $5.1 million, according to a MarketBeat‑summarized 13F filing. ^[27]
Rockefeller Capital Management L.P. sharply cut its stake by about 87.6%, selling roughly 695,000 shares, though many other large asset managers — including Kayne Anderson Rudnick, MFS, Bank of New York Mellon and Geode Capital — remain significant long‑term holders. ^[28]
Altogether, hedge funds and other institutions control roughly 98–99% of BJ’s float, underscoring its status as a widely held, institutionally owned mid‑cap. ^[29]

This mix of new quantitative inflows and profit‑taking from some long‑time holders suggests an active but not panicked institutional market in the shares.

Holiday season setup: Black Friday, free turkeys and new clubs

Although today’s headlines center on earnings, BJ’s has also been busy preparing for the critical holiday period:

A November 17 press release kicked off BJ’s Black Friday event, running from November 17 to December 1, with “sleighs full of savings” on TVs, gaming consoles, laptops, toys and home items, both in‑club and online. ^[30]
The company has revived its “Free Turkeys” promotion, offering eligible members a complimentary turkey with qualifying purchases — a tradition that highlights BJ’s focus on value during Thanksgiving. ^[31]
BJ’s recently opened a new club in Sevierville, Tennessee on November 14, expanding its presence in the Southeast and adding another BJ’s Gas® location promising everyday low fuel prices plus extra savings via its Fuel Savers Program. ^[32]

Together, these initiatives are designed to pull more traffic into clubs and onto BJs.com during the peak shopping season — a period that could further validate the company’s raised profit outlook if consumer demand holds up.

What today’s news means for BJ stock investors

For current and prospective investors, several themes emerge from BJ’s November 21, 2025 news flow:

Earnings quality remains solid.
- Adjusted EPS beat expectations despite slightly lower year‑over‑year profit, reinforcing management’s ability to protect margins amid higher costs. ^[33]
Membership and digital are doing the heavy lifting.
- High‑margin membership fees and 30% growth in digitally enabled sales are offsetting slower comparable‑sales growth at the club level. ^[34]
Guidance revision is quietly meaningful.
- Raising full‑year EPS guidance while holding capex around $800 million signals confidence in both near‑term earnings and long‑term growth investments. ^[35]
Valuation depends on your view of comps and the consumer.
- With comps ex‑gas running under 2% in Q3 and macro headwinds still present, bulls will argue that BJ’s value proposition and membership model justify a premium; skeptics may focus on whether such modest growth can sustain that premium if the consumer weakens further. ^[36]
Institutional and analyst support remains strong, but not euphoric.
- The stock carries a “Moderate Buy” consensus with double‑digit upside implied by average price targets, yet some funds have trimmed positions and a meaningful group of analysts sit at “hold,” reflecting a balanced risk‑reward profile. ^[37]

As always, this article is for informational purposes only and is not investment advice. Anyone considering BJ’s Wholesale Club stock should evaluate their own risk tolerance, time horizon and portfolio needs — and, ideally, review the company’s full Q3 2025 earnings release, Form 8‑K filing and replay of today’s earnings call on the investor relations site. ^[38]

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