Target Shows Strengths, But Analysts Want to See More BJ’s Wholesale Club (NYSE:BJ) reported a solid start to fiscal 2026, with management pointing to membership gains, higher fuel volumes, digital adoption and new club openings as key drivers of first-quarter performance.
Chairman and Chief Executive Officer Bob Eddy said the retailer’s results were “enabled by doing what we do best, serving our members with value.” He said membership remained a key strength, supported by acquisition, retention and growth in higher-tier memberships, while the gas business reinforced the company’s value proposition during a period of sharply higher fuel prices. – Surprising Beneficiaries of High Gas Prices: BJs and Costco Net sales rose nearly 10% year-over-year to $5.5 billion, according to Chief Financial Officer Laura Felice
Total comparable club sales increased 6.3%, while comparable sales excluding gasoline rose 1.5%. Eddy said the company’s two-year stacked merchandise comps remained healthy despite a “dynamic environment.” Membership Fee Income Hits Record Level Membership fee income increased approximately 10% from the prior year to about $132 million, reaching an all-time high. Eddy said the increase reflected strength in new member acquisition, retention and higher-tier penetration across both new and existing clubs. – BJ’s Wholesale Is Growing, Buying Back Stock, and Still Dirt Cheap “What matters most to us is not just growing the number of members, but continuing to improve the quality of the membership base over time,” Eddy said.
He added that higher-tier members shop more frequently, are more engaged and generate greater lifetime value. Management said membership fee income growth is expected to moderate as the year progresses because the company will begin lapping a prior-year fee increase. However, Felice said the underlying health of the membership base remains strong.