The EPS and revenue beats are positive, but the net income decline and negative adjusted FCF are concerning. The maintained guidance suggests management sees Q1 as in line with their plan. Watch for commentary on the conference call regarding the sustainability of the merchandise margin (down ~10bps) and the trajectory of operating cash flow in coming quarters.
Price Chart
Executive Summary
BJ's Wholesale Club reported Q1 FY2026 GAAP diluted EPS of $1.10 on total revenues of $5.66B, beating consensus estimates of $1.04 and $5.43B. Comparable club sales rose 6.3% (1.5% ex-gas), membership fee income grew 9.9% to $132.4M, and FY2026 guidance was maintained. However, GAAP net income declined 4.7% YoY to $142.7M due to higher SG&A and pre-opening costs, and adjusted free cash flow turned negative at -$42M.
Key Financial Metrics
Key Facts
- GAAP diluted EPS of $1.10 vs consensus $1.04 (beat by 5.8%)
- Total revenues of $5.66B vs consensus $5.43B (beat by 4.2%)
- Comparable club sales +6.3% YoY; ex-gas +1.5% YoY
- Membership fee income +9.9% YoY to $132.4M
- Net income declined 4.7% YoY to $142.7M
- Adjusted EBITDA +4.3% to $298.1M
- FY2026 guidance unchanged: adj. EPS $4.40-$4.60, comp sales ex-gas +2.0%-3.0%
- Repurchased 2.1M shares for $206.6M in Q1; $545M remaining on authorization
- Adjusted free cash flow turned negative to -$42M vs +$67.6M last year
- Net debt to LTM adjusted EBITDA increased to 0.6x from 0.4x at year-end
Financial Impact
EPS beat of $0.06 (+5.8%) and revenue beat of ~$230M (+4.2%) are notable, but net income decline and negative FCF temper enthusiasm
Risk Factors
- Net income declined 4.7% YoY despite revenue growth of 9.9%
- Adjusted free cash flow turned negative to -$42M from +$67.6M last year
- Merchandise gross margin rate decreased ~10bps due to pricing investments
- SG&A grew 5.9% driven by new club openings and higher labor costs
- Net debt to LTM adjusted EBITDA rose to 0.6x from 0.4x
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001531152-26-000026 |
| Document: bj-20260522.htm | 0001531152-26-000026 |
| Document: 0001531152-26-000026-index-headers.html | 0001531152-26-000026 |
| Document: 0001531152-26-000026-index.html | 0001531152-26-000026 |
| Document: 0001531152-26-000026.txt | 0001531152-26-000026 |
| 8-K Data (Synthetic) | 0001531152-26-000026 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 26, 2026 5w ago | Insider Cluster | $93.33 $91.84 | ▼ −1.60% | ▼ −1.74% | $94.96 (+1.75%) |
Aug 21, 2026 6w ago | 8-K | $96.42 $92.31 | ▼ −4.26% | ▼ −5.28% | $94.96 (−1.51%) |
Jul 15, 2026 11w ago | 144 | $93.07 $93.53 | ▲ +0.49% | ▼ −3.12% | $94.96 (+2.03%) |
Jun 17, 2026 15w ago | Insider Cluster | $85.22 $93.07 | ▲ +9.21% | ▲ +8.68% | $94.96 (+11.43%) |
May 22, 2026 19w ago | 8-K | $86.64 $85.31 | ▼ −1.54% | ▼ −0.12% | $94.96 (+9.60%) |
May 6, 2026 21w ago | DEFA14A | $94.33 $89.18 | ▼ −5.46% | ▼ −8.60% | $94.96 (+0.67%) |
Apr 15, 2026 24w ago | 144 | $92.24 $95.00 | ▲ +2.99% | ▼ −2.82% | $94.96 (+2.95%) |
Apr 13, 2026 24w ago | Insider Cluster | $93.17 $91.11 | ▲ +2.21% | ▲ +9.94% | $94.96 (−1.92%) |
Apr 13, 2026 24w ago | Court Ruling | $93.17 $91.11 | ▼ −2.21% | ▼ −9.94% | $94.96 (+1.92%) |
Mar 5, 2026 30w ago | 8-K | $98.47 $98.06 | ▼ −0.42% | ▲ +3.37% | $94.96 (−3.56%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access