BJ’s Wholesale Club Q2 Revenue Jumps 15.7% as Membership Hits Record 8.5 Million

BJ’s Wholesale Club Holdings reported total revenue of $6.23 billion for its fiscal second quarter, up 15.7% from $5.38 billion a year earlier, as the warehouse-club operator’s membership base reached a record 8.5 million. Net sales rose 15.9% to $6.09 billion, while membership fee income increased 9.9% to $135.6 million.

Profitability also improved in the 13 weeks ended August 1, 2026. Net income increased 15.4% to $173.9 million, and diluted earnings per share rose to $1.36 from $1.14. Comparable club sales were up 11.9% from the year-earlier quarter; excluding gasoline, comparable sales increased 3.1%.

BJ’s reported the second-quarter figures on August 21 and said it opened three clubs and one gas station during the period. As of the August 21 release, BJ’s said it operated 267 clubs and 206 BJ’s Gas locations across 22 states. The pace of openings also contributed to higher labor, occupancy and operating expenses later in the income statement.

Record membership adds to recurring fee growth

The record 8.5 million member count was accompanied by another quarter of higher membership fee income. Fees rose to $135.6 million from $123.3 million a year ago, with BJ’s attributing the increase to membership acquisition, retention and greater penetration of higher-tier memberships across both existing and newer clubs. For the first six months of fiscal 2026, membership fee income reached $268.0 million, up from $243.7 million.

Membership growth matters beyond the fee line because it expands the customer base shopping across BJ’s clubs, gas stations and digital channels. The second quarter showed strength in those channels at the same time: digitally enabled comparable sales increased 30%, and the company said the two-year stacked digital comparable-sales increase was 64%. That pace was well above the 3.1% comparable-sales gain excluding gasoline, making digital activity one of the clearest areas of acceleration disclosed in the quarter.

Gasoline also had a large influence on the headline sales comparison. Total comparable club sales climbed 11.9%, versus 3.1% when gasoline was excluded. BJ’s did not provide a separate dollar figure for the entire gasoline contribution in the earnings release, but management specifically cited stronger gas performance when explaining the quarter and the decision to lift full-year earnings guidance.

Profit rises despite pricing investment and higher operating costs

Gross profit increased to $1.11 billion from $1.01 billion in the second quarter of fiscal 2025, but the merchandise gross margin rate, which excludes gasoline sales and membership fee income, fell by about 20 basis points. BJ’s said the decline primarily reflected continued investment in pricing, partly offset by tariff refund benefits recognized during the period. That left gross profit higher in dollars even as the merchandise margin narrowed.

Selling, general and administrative expenses rose to $851.2 million from $786.4 million. BJ’s linked the increase mainly to higher labor, occupancy and operating costs associated with new club and gas-station openings, along with more depreciation from a larger number of owned clubs. Those expenses were partly offset by a gain connected with a sale-leaseback during the quarter.

Operating income increased 16.5% to $252.4 million, while adjusted EBITDA rose 14.3% to $347.2 million. Together with the 15.4% increase in net income, those figures represented a clear improvement from the start of the year. First-quarter net income had fallen 4.7% year over year to $142.7 million even as revenue increased, so the second quarter materially improved the company’s first-half earnings trajectory.

BJ’s also continued buying back stock. It repurchased about 1.38 million shares for $124.1 million during the second quarter and spent $330.7 million on roughly 3.50 million shares over the first six months of the fiscal year. Approximately $422.1 million remained available under the existing repurchase authorization at quarter-end.

Higher EPS outlook leaves comparable-sales forecast unchanged

Following the second-quarter performance, BJ’s raised its fiscal 2026 adjusted earnings-per-share forecast to $4.60 to $4.80. The company had previously guided to $4.40 to $4.60 and reaffirmed that earlier range after its first quarter. The new outlook lifts both ends of the range by 20 cents.

The sales outlook did not change. BJ’s continues to expect comparable club sales excluding gasoline to increase 2.0% to 3.0% for the fiscal year ending January 30, 2027. That guidance is below the second quarter’s 3.1% ex-gas comparable-sales growth rate, indicating that management is not extrapolating the latest quarter’s pace across the remainder of the year.

Capital spending guidance also remains at about $800 million. BJ’s said the budget reflects continued investment in new club openings and improvements to its distribution network, including an ambient distribution center. The company’s cost base is already showing the effect of that expansion through higher labor, occupancy, operating and depreciation expense, making the balance between footprint growth and club-level productivity an important operating measure for the second half.

For the first six months of fiscal 2026, total revenue rose 12.9% to $11.89 billion, while net income increased 5.4% to $316.6 million and adjusted EBITDA gained 9.4% to $645.3 million. The stronger second quarter lifted year-to-date revenue growth to 12.9% and allowed BJ’s to raise its earnings range without changing its comparable-sales or capital-spending assumptions.