BJ’s Wholesale Stock Rises on Strong Q3 Profits, Membership Fee Hike

BJ’s Wholesale Club (BJ) shares rose Thursday morning after the warehouse retailer reported better third-quarter earnings than expected despite sales falling just short of estimates.

The retailer reported $5.1 billion in revenue for the quarter, up about 3% year-over-year but just a few million dollars below the $5.11 billion analysts had projected, according to estimates compiled by Visible Alpha. Net income also rose by nearly 20% from last year to $155.75 million, better than the $124.09 million analysts had estimated.

Comparable store sales rose by 1.5% in the quarter, just under the 1.6% bump analysts had expected, as BJ’s said it believes the threat of the port strike that started over the summer and was suspended in October increased sales as shoppers prepared for potential supply disruptions.

Membership Fee Set to Rise, Guidance Lifted

BJ’s also announced that as of January 1, its membership fees will increase to $60 and $120, up from $55 and $110 previously for the Club and Club+ memberships, respectively. The more expensive tier gives BJ’s members access to a wider range of discounts and rewards.

The move follows a similar price increase from warehouse retail rival Costco (COST) that went into effect in September, also its first in seven years.

The company’s board also approved a new $1 billion stock buyback program. The previous program is set to expire in January, and the new program will run through January 2029.

For the full fiscal year, the company also lifted its expected comparable sales growth, excluding the impact of sales at its gas stations, to 2.3% to 2.4%, up from a previous range of 1% to 2%. BJ’s also said its full-year adjusted earnings per share (EPS) should come in between $3.90 and $4.00 per share, up from $3.75 to $4.00 previously.

Shares of BJ’s were up more than 6% to $91.42 in early trading Thursday.