BJ's Q3 Net Income Dips Amid Strong Revenue Growth

TL;DR

**BJ's Q3 net income dip is a yellow flag, but membership growth and revenue gains show underlying strength; I'm cautiously bullish on BJ for the long haul.**

AI Summary

BJ's Wholesale Club Holdings, Inc. reported a mixed financial performance for the thirteen weeks ended November 1, 2025, with net income slightly decreasing to $152.05 million from $155.75 million in the prior year, a 2.37% decline. However, total revenues increased by 4.88% to $5.35 billion, up from $5.10 billion, driven by a 4.77% rise in net sales to $5.22 billion and a significant 9.84% increase in membership fee income to $126.30 million. For the thirty-nine weeks ended November 1, 2025, net income grew by 9.89% to $452.52 million from $411.76 million, and total revenues increased by 4.33% to $15.88 billion. Operating income for the quarter decreased by 4.81% to $218.35 million, while for the thirty-nine-week period, it increased by 7.53% to $638.53 million. The company's cash and cash equivalents rose to $45.12 million from $28.27 million at the beginning of the period. Key risks include seasonality, with sales typically highest in the fourth quarter, and ongoing evaluation of new accounting pronouncements like ASU 2023-09 and ASU 2025-06.

Why It Matters

BJ's mixed Q3 results, with declining net income but robust revenue and membership growth, signal a competitive landscape where top-line expansion is easier than bottom-line protection. For investors, the 9.84% jump in membership fee income to $126.30 million is a strong indicator of customer loyalty and recurring revenue, crucial in the cutthroat warehouse club sector dominated by Costco and Sam's Club. Employees might see continued investment in store expansion, as evidenced by the increase in property and equipment to $2.23 billion. Customers benefit from enhanced digital capabilities and rewards programs, but the slight dip in quarterly net income suggests potential margin pressures that could impact future pricing or service offerings. The broader market will watch how BJ's balances growth initiatives with profitability in a high-inflation environment.

Risk Assessment

Risk Level: medium — The risk level is medium due to a quarterly net income decline of 2.37% to $152.05 million, indicating potential margin pressures despite strong revenue growth. Additionally, the company's business is subject to seasonality, with sales and operating income typically highest in the fourth quarter, as stated in Note 2(a), which could lead to variability in financial performance.

Analyst Insight

Investors should monitor BJ's Q4 performance closely for signs of improved profitability and margin management, especially given the stated seasonality. The strong membership fee income growth of 9.84% suggests a solid customer base, so investors should consider this a long-term hold, focusing on sustained revenue growth and effective cost control in future filings.

Financial Highlights

revenue

$5.35B

operating Margin

4.08%

total Assets

$7.55B

total Debt

$599.03M

net Income

$152.05M

cash Position

$45.12M

revenue Growth

+4.88%

Revenue Breakdown

Key Numbers

• $152.05M — Net income for Q3 2025 (Decreased by 2.37% from $155.75 million in Q3 2024)
• $5.35B — Total revenues for Q3 2025 (Increased by 4.88% from $5.10 billion in Q3 2024)
• $126.30M — Membership fee income for Q3 2025 (Increased by 9.84% from $114.98 million in Q3 2024)
• $452.52M — Net income for 39 weeks ended Nov 1, 2025 (Increased by 9.89% from $411.76 million in the prior year period)
• $15.88B — Total revenues for 39 weeks ended Nov 1, 2025 (Increased by 4.33% from $15.22 billion in the prior year period)
• $45.12M — Cash and cash equivalents as of Nov 1, 2025 (Increased from $28.27 million at Feb 1, 2025)
• 256 — Number of warehouse clubs (Operated as of November 1, 2025)
• 192 — Number of gas stations (Operated as of November 1, 2025)
• $2.23B — Property and equipment, net as of Nov 1, 2025 (Increased from $1.90 billion at Feb 1, 2025)
• 130,847,715 — Shares of common stock outstanding (As of November 20, 2025)

Key Players & Entities

• BJ's Wholesale Club Holdings, Inc. (company) — registrant
• Bloomberg (company) — publisher
• Securities and Exchange Commission (regulator) — filing oversight
• FASB (regulator) — accounting standards setter
• New York Stock Exchange (regulator) — exchange where common stock is registered
• Costco (company) — competitor
• Sam's Club (company) — competitor
• ASU 2023-09 (other) — accounting pronouncement
• ASU 2024-03 (other) — accounting pronouncement
• ASU 2025-06 (other) — accounting pronouncement

FAQ

Risk Factors

• Seasonality of Sales [medium — market]: BJ's Wholesale Club experiences significant seasonality, with sales typically peaking in the fourth quarter. This concentration of revenue in a single quarter creates a risk of underperformance if the peak season is weaker than anticipated.
• Accounting Pronouncements [low — regulatory]: The company is actively evaluating new accounting pronouncements, including ASU 2023-09 and ASU 2025-06. Changes in accounting standards can impact financial reporting and require adjustments to systems and processes.
• Inventory Management [medium — operational]: Merchandise inventories were $1.69 billion as of November 1, 2025, up from $1.51 billion at the start of the fiscal year. Effective inventory management is crucial to avoid obsolescence, spoilage, and carrying costs, especially given the scale of operations.
• Debt Obligations [medium — financial]: The company has $200 million in short-term debt and $399 million in long-term debt as of November 1, 2025. Managing these obligations, including interest payments and principal repayments, is essential for financial stability.

Industry Context

BJ's Wholesale Club operates in the highly competitive warehouse club sector, alongside giants like Costco and Sam's Club. The industry is characterized by a membership model, bulk product offerings, and a focus on value for consumers. Recent trends include increased emphasis on digital capabilities, same-day delivery, and private label brands to drive customer loyalty and differentiate from competitors.

Regulatory Implications

The company must adhere to evolving accounting standards, such as ASU 2023-09 and ASU 2025-06, which could necessitate changes in financial reporting and disclosures. Compliance with SEC regulations and other financial reporting requirements remains a constant operational consideration.

What Investors Should Do

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Key Dates

• 2025-11-01: End of thirteen weeks and thirty-nine weeks reporting period — Provides the latest financial performance data for the company, including revenue, net income, and balance sheet figures.
• 2025-02-01: Beginning of fiscal year 2025 — Marks the start of the period for which year-to-date financial comparisons are made, particularly for cash and cash equivalents and inventory.
• 2024-11-04: Fifth Amendment to First Lien Term Loan entered into — Indicates changes or updates to the company's long-term debt structure, which could affect interest expenses and financial flexibility.

Glossary

ASU 2023-09

Accounting Standards Update 2023-09, likely related to disclosure requirements or recognition of specific financial items. (BJ's is evaluating this pronouncement, which could impact its financial reporting and disclosures.)

ASU 2025-06

Accounting Standards Update 2025-06, a forthcoming or recently issued standard that the company is assessing. (The company's proactive evaluation suggests potential changes to its financial statements or accounting policies.)

Operating lease right-of-use assets, net

The value of assets recognized on the balance sheet representing the right to use a leased asset over the lease term, net of accumulated amortization. (A significant asset category ($2.02B as of Nov 1, 2025), reflecting the company's extensive use of leased properties, such as warehouses.)

Treasury stock

Shares of the company's own stock that have been repurchased from the open market. (BJ's holds $1.11B in treasury stock as of Nov 1, 2025, reducing total stockholders' equity and potentially signaling a return of capital to shareholders or a strategy to offset dilution.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, BJ's Wholesale Club Holdings, Inc. demonstrated revenue growth, with total revenues up 4.88% to $5.35 billion for the thirteen weeks ended November 1, 2025. However, net income saw a slight decrease of 2.37% to $152.05 million, indicating potential margin pressures or increased operating expenses. While cash and cash equivalents improved significantly to $45.12 million from $28.27 million at the start of the fiscal year, operating income declined by 4.81%, suggesting a need to scrutinize cost management strategies.

Key Financial Figures

• $0.01 B — ich registered Common Stock, par value $0.01 BJ New York Stock Exchange Indicate by
• $0.01 — had 130,847,715 shares of common stock, $0.01 par value per share, outstanding. Tab
• $1.2 billion — means the aggregate committed amount of $1.2 billion under the ABL Revolving Facility; "Fir

Filing Documents

• bj-20251101.htm (10-Q) — 985KB
• bj-20251101x10qex311.htm (EX-31.1) — 10KB
• bj-20251101x10qex312.htm (EX-31.2) — 10KB
• bj-20251101x10qex321.htm (EX-32.1) — 5KB
• bj-20251101x10qex322.htm (EX-32.2) — 5KB
• bj-20251101_g1.jpg (GRAPHIC) — 5KB
• 0001531152-25-000131.txt ( ) — 4888KB
• bj-20251101.xsd (EX-101.SCH) — 32KB
• bj-20251101_cal.xml (EX-101.CAL) — 46KB
• bj-20251101_def.xml (EX-101.DEF) — 153KB
• bj-20251101_lab.xml (EX-101.LAB) — 481KB
• bj-20251101_pre.xml (EX-101.PRE) — 315KB
• bj-20251101_htm.xml (XML) — 566KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Operations and Comprehensive Income 5 Condensed Consolidated Statements of Stockholders' Equity 7 Condensed Consolidated Statements of Cash Flows 9 Notes to Unaudited Condensed Consolidated Financial Statements 10 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 Item 4.

Controls and Procedures

Controls and Procedures 30 PART II. OTHER INFORMATION 31 Item 1.

Legal Proceedings

Legal Proceedings 31 Item 1A.

Risk Factors

Risk Factors 31 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31 Item 3. Defaults Upon Senior Securities 32 Item 4. Mine Safety Disclosures 32 Item 5. Other Information 32 Item 6. Exhibits 33 Signature 34 2 TRADEMARKS BJ's Wholesale Club , BJ's , Wellsley Farms , Berkley Jensen , My BJ's Perks , BJ's Easy Renewal , BJ's Gas , BJ's One , BJ's One+ , BJ's Perks Elite , BJ's Perks Plus , Inner Circle , Same-Day-Select , ExpressPay and BJ's Perks Rewards are all registered trademarks of BJ's Wholesale Club, Inc. Other trademarks, trade names and service marks appearing in this Quarterly Report on Form 10-Q are the property of their respective owners. We do not intend our use or display of those other parties' trademarks, trade names or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement or sponsorship of us by, these other parties. Solely for convenience, trademarks, trade names and service marks referred to in this Quarterly Report on Form 10-Q may appear without the , or SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks, trade names and service marks. DEFINED TERMS As used in this Quarterly Report on Form 10-Q, unless the context otherwise requires: "The Company", "BJ's", "we", "us" and "our" mean BJ's Wholesale Club Holdings, Inc. and, unless the context otherwise requires, its consolidated subsidiaries; "ABL Revolving Facility" means the Company's revolving credit facility entered into on July 28, 2022; "ABL Revolving Commitment" means the aggregate committed amount of $1.2 billion under the ABL Revolving Facility; "First Lien Term Loan" means the Company's senior secured first lien term loan facility that was amended on November 4, 2024; "Fourth Amendment" means the Company's fourt

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. BJ'S WHOLESALE CLUB HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except par value) (Unaudited) November 1, 2025 February 1, 2025 November 2, 2024 ASSETS Current assets: Cash and cash equivalents $ 45,119 $ 28,272 $ 33,873 Accounts receivable, net 299,250 277,326 266,718 Merchandise inventories 1,693,805 1,508,988 1,720,011 Prepaid expenses and other current assets 90,472 64,374 76,491 Total current assets 2,128,646 1,878,960 2,097,093 Operating lease right-of-use assets, net 2,015,769 2,100,257 2,114,592 Property and equipment, net 2,227,460 1,897,604 1,832,397 Goodwill 1,008,816 1,008,816 1,008,816 Intangibles, net 96,874 101,109 102,739 Deferred income taxes 5,874 6,975 5,010 Other assets 62,361 71,584 55,575 Total assets $ 7,545,800 $ 7,065,305 $ 7,216,222 LIABILITIES Current liabilities: Short-term debt $ 200,000 $ 175,000 $ 245,000 Current portion of operating lease liabilities 177,928 192,528 163,292 Accounts payable 1,376,057 1,253,512 1,420,425 Accrued expenses and other current liabilities 945,730 913,042 913,307 Total current liabilities 2,699,715 2,534,082 2,742,024 Long-term operating lease liabilities 1,920,153 2,013,962 2,024,689 Long-term debt 399,026 398,807 398,663 Deferred income taxes 69,260 59,659 65,531 Other non-current liabilities 285,736 211,341 223,144 Commitments and contingencies (see Note 5 ) STOCKHOLDERS' EQUITY Preferred stock; par value $ 0.01 ; 5,000 shares authorized, and no shares issued — — — Common stock, par value $ 0.01 ; 300,000 shares authorized, 149,835 shares issued and 130,848 outstanding at November 1, 2025; 148,965 shares issued and 131,638 outstanding at February 1, 2025; and 148,776 shares issued and 132,094 outstanding at November 2, 2024 1,498 1,489 1,488 Additional paid-in capital 1,122,485 1,079,445 1,054,912 Retained earnings 2,155,171 1,702,648 1,579,986 Accumulated other comprehensive income 231 231 501 Treasury