New York, May 22, 2026, 13:06 (EDT)
BJ’s Wholesale Club Holdings shares dropped hard Friday as the market shrugged off the company’s earnings beat. Investors instead zeroed in on slow sales growth outside gasoline for the membership retailer.
BJ’s is getting weighed on more than just member traffic these days. While gas deals can help bring people to the parking lot, the stock reaction showed investors are looking for stronger proof those shoppers are spending more inside the stores.
BJ’s shares hovered near $86 in early afternoon trade, off more than 8% from where they finished Tuesday at $94.43. The stock stuck close to session lows. The S&P 500 gained 0.6% in early afternoon moves.
BJ’s Wholesale Club reported a 9.9% increase in total revenue to $5.66 billion for the fiscal first quarter ended May 2. Net income dropped 4.7% to $142.7 million, or $1.10 per diluted share. Membership-fee income was up 9.9% to $132.4 million. Comparable-club sales were up 6.3%, but just 1.5% when excluding gasoline sales.
Profit wasn’t the issue. Analysts were looking for $1.03 per share, and revenue actually topped the $5.44 billion estimate mentioned by the Wall Street Journal.
BJ’s Wholesale Club CEO Bob Eddy said the chain’s value message “continued to resonate.” CFO Laura Felice said guidance for fiscal 2026 was still “unchanged.” The company stuck with its forecast for adjusted EPS of $4.40 to $4.60 and comparable sales ex-gasoline up 2% to 3%. BJ’s Wholesale Club Newsroom
Sales mix was the issue. MarketWatch said core comparable sales excluding gas missed the 1.6% estimate. Gasoline brought in traffic but did not increase wider in-club spending, which investors had hoped for. MarketWatch also compared this to Walmart, which saw fuel-linked members spend more throughout its business.
BJ’s operates in a small, competitive retail segment. In its latest annual filing, BJ’s called out Costco Wholesale and Walmart’s Sam’s Club as main warehouse club rivals. The company said price is a key issue and its bigger competitors have more money and marketing power.
BJ’s is still seeing some demand. Digitally enabled comparable sales were up 28%. The retailer opened one new club and six gas stations this quarter. It also bought back 2.1 million shares for about $206.6 million, with around $545 million left on its buyback program.
The risk is pretty straightforward. If gas keeps driving the top line but merchandise sales don’t pick up, BJ’s may get stuck with a weaker sales mix just as its costs for new clubs, labor, occupancy and distribution rise. That could make it tougher to compete with Costco and Sam’s Club.
The change happened during normal NYSE hours before the Memorial Day break. The exchange’s calendar shows Monday, May 25, as a market holiday in 2026.
