BJ's Wholesale Club (BJ) -) shares moved lower Friday after the smaller bulk-discount rival to Costco (COST) -) posted weaker-than-expected fiscal-third-quarter sales and forecast muted holiday season traffic.
BJ's said adjusted earnings for the three months ending on October 28 came in at 98 cents per share, down a penny from the same period last year and 3 cents ahead of the Street consensus forecast. Group revenue was essentially flat to last year at $4.82 billion but missed analysts' estimates of a $4.9 billion tally.
Same-store sales, which exclude gasoline receipts, were also flat to last year's levels, BJ's said, compared with forecasts of a 1% gain. Membership fees rose 6.6% to $106.1 million.
Looking into the 2023 financial year, which ends in January, BJ's reiterated its forecast of earnings in the region of $3.80 to $3.92 per share, with holiday-quarter comparable sales likely to range from a decline of 2% to an increase of 1%.
Related: Walmart slumps as cautious consumer spending outlook clouds Q3 earnings beat
BJ's: faster membership growth
“Our advantaged model and strong value proposition continue to resonate with our members. During the third quarter, we posted accelerating membership growth, robust traffic gains and continued increases in market share," said CEO Bob Eddy said in a statement. "These gains continue to reinforce the underlying strength of our business and we remain confident in the long-term growth prospects of our company.”
BJ's Wholesale Club shares were marked 3.1% lower in early Friday trading to change hands at $65.56 each, a move that leaves the stock down around 3.4% for the year.
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