BJ’s Wholesale Club releases Q4, full fiscal 2023 results
BJ's Wholesale Club ended fiscal 2023 on a strong note, said Bob Eddy, chairman and CEO of BJ's Wholesale Club as the company released its fourth quarter and full fiscal 2023 results.
"Our membership grew in robust fashion and we continue to retain members at all-time high rates," Eddy said, "We delivered impressive market share gains in our clubs and at our gas pumps, driven by acceleration in traffic and growth in units sold. We improved our merchandising and value proposition meaningfully during the year and increasingly delivered both with greater convenience through our digital offerings. We also continued to grow our chain with six new clubs since the third quarter. I’m proud of our team and our progress and look forward to more growth in the future.”
B.J.'s net sales and net income for the 53rd week were approximately $353.4 million and $13.4 million, respectively.
The retailer's total comparable club sales decreased by .4% in the fourth quarter of fiscal 2023 compared to the fourth quarter of fiscal 2022. Excluding the impact of gasoline sales, comparable club sales increased by .5% in the fourth quarter of fiscal 2023 compared to the fourth quarter of fiscal 2022. Comparable club sales decreased by 1% in fiscal 2023 compared to fiscal 2022. Excluding the impact of gasoline sales, comparable club sales increased by 1.7% in fiscal 2023 compared to fiscal 2022.
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B.J.s gross profit increased to $963.3 million in the fourth quarter of fiscal 2023 from $903.2 million in the prior year period. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, decreased by 40 basis points over the fourth quarter of fiscal 2022 as the company continues to invest in the business. The decrease also was driven by lower ancillary income, B.J.’s said.
B.J.'s gross profit increased to $3.64 billion in fiscal 2023 from $3.43 billion in fiscal 2022. Merchandise gross margin rate increased by approximately 50 basis points over fiscal 2022. Merchandise margins were positively impacted by moderated supply chain costs and improved inventory management, the company said.
The big box retailer's net income increased to $145.9 million in the fourth quarter of fiscal 2023 compared to $129.8 million in the prior year period. Net income increased to $523.7 million in fiscal 2023 compared to $513.2 million in fiscal 2022.
Adjusted EBITDA increased by 8.9% to $290.7 million in the fourth quarter of fiscal 2023 compared to $267 million in the prior year period. Adjusted EBITDA increased by 7.2% to $1.08 billion in fiscal 2023 compared to $1.01 billion in fiscal 2022. Fiscal year and fourth quarter 2022 adjusted EBITDA has been recast to exclude pre-opening expenses and non-cash rent expense to conform to the current period definition.
“As we look to fiscal 2024, we continue to navigate macro-driven uncertainty in the operating environment,” said Laura Felice, executive vice president, chief financial officer at BJ’s Wholesale Club. “We remain confident that our structural operating advantages, continued focus on executing our strategic priorities, and commitment to delivering great value to our members will drive strong results for our business.”
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B.J.’s provided the following guidance for fiscal 2024:
- B.J.'s expects comparable club sales, excluding the impact of gasoline sales, to increase 1% to 2% year-over-year;
- The company expects merchandise gross margins to improve approximately 20 basis points year-over-year; and
- B.J.'s expects Adjusted EPS to range from $3.75 to $4.00.