BJ's Wholesale Club (NYSE:BJ) reported mixed Q1 results, hence shares are trading lower in pre-market Tuesday.
The company reported adjusted EPS of $0.85, in line with the analyst estimate of $0.85. Revenue for the quarter came in at $4.72 billion, missing the consensus estimate of $4.82B.
Comparable sales, excluding gas, were up 5.7% but below the 6% analyst target. The company also said its merchandise inventory levels rose 4.8% to $1.53B.
“We reported a record first quarter in net income and adjusted EBITDA, demonstrating the power of our business model and the warehouse club channel,” said Bob Eddy, president and chief executive officer, BJ’s Wholesale Club.
“We drove topline growth bolstered by robust traffic and share gains. We also made significant improvements on our merchandise margins largely due to waning supply chain pressures and moderating inflation. We remain focused on our strategic priorities and believe that we are well-positioned to maximize long-term shareholder value.”
The retailer maintained its full-year outlook “given the sustained strength in our grocery business and our gains in market share.”
Goldman Sachs analysts said the stock is trading lower due to weakness in comparable sales.
“However, we view the solid 1Q results and reiterated guide favorably given some recent softening in the consumer backdrop,” analysts said in a note.