BJ's Wholesale Club (NYSE:BJ) shares were up 2.4% ahead of the bell on Friday, as investors looked past a modest sales miss and focused instead on yet another earnings beat and a second straight upgrade to full-year profit guidance.
Comparable-club sales rose 1.8% in the latest quarter, shy of the 2.4% analysts expected and well behind the momentum rival Costco has shown in recent months.
Even so, revenue nudged past forecasts and BJ’s extended its spotless five-year streak of topping bottom-line estimates, delivering adjusted earnings of $1.16 per share versus the $1.09 consensus.
Membership-fee income, a key profit driver for warehouse clubs, jumped nearly 10%, helping offset slimmer merchandise gains. Management trimmed its full-year sales outlook but lifted its earnings range again, now guiding for $4.30 to $4.40 per share.
After six months of declines, the stock is on track for a rare monthly gain.
Investors seem comforted that BJ’s can still defend margins and grow profits even as discretionary spending remains uneven across the sector.