© Reuters.
By Sam Boughedda
Investing.com — BJ’s Wholesale Club (NYSE:) reported better than expected earnings on Thursday, causing its shares to rally.
BJ’s and competitors Walmart (NYSE:) and Costco (NASDAQ:) had fallen in recent days due to the impact of inflation, especially shipping costs, and margin pressures. Walmart missed earnings expectations and cut its forecast on Tuesday.
However, before the open, revenue of $4.39 billion, above forecasts of $4.2 billion. In addition, revenue grew 16.3% compared to the prior-year quarter.
Earnings per share also beat forecasts, coming in 17 cents above analysts’ predictions at $0.87 per share. Meanwhile, total comparable sales increased by 14.4% compared to the prior-year quarter, boosted by gasoline sales.
Membership fee income rose by 11.9% to $96.6 million year-over-year.
“Our performance in the first quarter was strong, as gains in member traffic underscored the value we provide. Our business model remains more relevant than ever in the current inflationary environment,” said President and CEO Bob Eddy.
Eddy commented that its memberships had “never been stronger” as the company surpassed 6.5 million members in the quarter.
The company said it remains optimistic that the strength of its core business will continue to drive long-term growth, while its “fiscal year 2022 EPS outlook of flat year-over-year remains unchanged.”
BJ’s stock is up 7.6% at the time of writing.
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