Meanwhile, CFO Laura Felice said that the uncertainty and volatility in the macro environment remain elevated, and the company expects it to influence costs and consumer spending patterns.
BJ’s Wholesale Club Holdings (BJ) CEO Robert Eddy said on Friday during a post-earnings call that the membership-only retail chain was seeing, overall, a pretty resilient consumer in the face of everything that is happening in the macro environment due to tariffs and the resulting inflation.
“As we go forward through the year, I do think you’ll see more inflation as more suppliers pass on increasing tariff costs and some of that makes its way to the consumer,” Eddy added.
Retail sentiment on BJ’s Wholesale remained unchanged in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.
Shares of BJ’s Wholesale were down 8.4% in early trading. The company’s second-quarter revenue came in at $5.38 billion, compared with estimates of $5.48 billion, according to data from Fiscal AI. “The uncertainty and volatility in the macro environment remain elevated, and we expect it to influence costs and consumer spending patterns,” CFO Laura Felice said.
The company’s adjusted earnings per share (EPS) of $1.14 topped analysts’ expectations of $1.09. BJ’s Wholesale now expects fiscal 2025 adjusted EPS to range from $4.20 to $4.35, up from prior guidance of $4.10 to $4.30.
Eddy added that the company was being cautious from an inventory perspective, but only in the categories that are discretionary and have higher tariffs associated with them. “So a good category to think about might be seasonal, holiday decor, where the vast majority of that stuff is built in China and obviously comes with a steep tariff on it,” he said. “Maybe a little less of a tariff today than we thought a couple of months ago, when really placing those orders. But regardless, I think the prices are going to rise on things like that,” Eddy added.
BJ’s Wholesale stock has gained nearly 9% this year and jumped over 17% in the last 12 months.
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