:max_bytes(150000):strip_icc()/GettyImages-2166983410-9ddc998a0c5e46ca94e0d3990db520c7.jpg "BJ’s Wholesale shares plunge on disappointing forecast")
Key findings
- BJ’s Wholesale Holdings said full-year adjusted earnings per share could be at the lower end of its guidance due to long-term investments.
- The retailer’s selling and administrative expenses increased 8% year-on-year.
- Adjusted earnings per share, revenue, net sales and membership fees all exceeded analysts’ estimates.
BJ’s Wholesale Club (BJ) shares fell after the retailer issued a cautious forecast and intends to invest more money in the business.
BJ CFO Laura Felice said full-year adjusted earnings per share (EPS) could be at the lower end of the $3.75 to $4 guidance due to long-term investments. According to Visible Alpha estimates, analysts had expected $3.88.
Second quarter results exceed analyst estimates
BJ’s reported adjusted earnings per share of $1.09 in the second quarter, with revenue rising 4.5% year over year to $5.21 billion. Net sales rose 4.4% to $5.09 billion and membership fees rose 8.9% to $113.1 million. All of these numbers were above analyst estimates.
Selling, general and administrative (SG&A) expenses increased 8% to $750.3 million.
CEO Bob Eddy said the company reported its tenth consecutive month of traffic growth and that the quarterly results “demonstrate the significant progress we are making on our long-term strategic initiatives.”
BJ shares fell more than 6 percent in intraday trading on Thursday, closing at $81.63. Despite Thursday’s losses, however, they have gained more than 22 percent since the beginning of the year.
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