BJ's Wholesale Club Holdings, Inc. Q2 FY26 Earnings Analysis

- Comparable club sales, excluding gasoline, are expected to grow in the range of 2% to 3% for the full year. (Page 4) - Q2 through Q4 comps are anticipated to remain in the 2% to 3% growth range; Q1 was expected and delivered outside this range. (Page 12) - Gasoline volumes showed strong growth with comparable gallons up nearly 8% and total gallons up over 20% including new stores, reflecting continued share gains. (Pages 4, 8) - Membership remains a foundation for growth, with total members at an all-time high and strong acquisition, retention, and higher tier penetration supporting durable revenue streams. (Pages 2, 4, 7) - New club openings have exceeded plans, notably the 2025 class considered the best in company history, with Texas expansions off to a strong start following the same playbook. (Pages 7, 12) - Digital sales are growing rapidly, with digitally enabled comps up 28% YoY, enhancing member engagement and convenience. (Page 2)

- BJ’s maintains full-year guidance with comparable club sales (excluding gasoline) expected to grow 2% to 3%. (Page 4) - Adjusted earnings per share (EPS) guidance for the full year remains in the range of $4.40 to $4.60. (Page 4) - Merchandise gross margin investments in price are expected to continue, balancing value for members with tariff refund benefits. (Pages 4, 12) - Tariff refunds and careful monitoring of tariffs provide additional cash flow to invest in value. (Page 12) - Investments in new stores, gas stations, and remodeling are projected to yield high returns, supporting long-term growth. (Page 11) - They expect continued traffic and ticket growth, with core business comps projected in the 2%-3% range from Q2 to Q4. (Page 12) - The company emphasizes long-term franchise building rather than short-term gains, focusing on membership quality and engagement. (Pages 4, 11)

- BJ’s continues significant capital investment in store growth, spending approximately $700–$800 million annually on new stores and gas stations. - The company plans to open 12 new clubs in 2024: 1 in Q1, 3 in Q2, 3 in Q3 (including relocating Rotterdam, NY club), and 5 in Q4, with a focus on Texas market expansion. - Texas investment is a major part of current preopening expenses, with all Texas stores now open or opening this year. - Strategic investments include remodeling existing stores to match new club experiences and expanding gas station network (205 stations currently, up 50% since IPO). - Investment in pricing and value for members funded partly by tariff refunds, aimed at long-term member value and franchise growth. - Digital enhancements continue to improve member experience and convenience. - Capital allocation balances growth investments and shareholder returns through share repurchases.

- The company continues to maintain a strong balance sheet and solid cash flow. - Net leverage remains low, providing flexibility to invest in growth and return capital to shareholders. - During the quarter, the company repurchased approximately $207 million of shares, with $545 million remaining under the current authorization. - Capital allocation prioritizes investing in new stores, gas stations, and remodeling while supporting shareholder returns via buybacks. - There is no explicit mention of any new or planned fundraising through debt or equity in the current disclosures. - Fitch recently initiated coverage with an investment-grade rating, reflecting strong financial discipline. - Overall, the company appears focused on using existing cash flow and leverage capacity for growth and shareholder returns rather than raising new external capital at this time.

The provided pages of the document do not contain specific details about the current or expected orderbook or pending orders. The discussion primarily focuses on: - The progress and investment in Texas club openings, with four stores opened (three in Q2), and additional openings planned for Q3 (three stores) and Q4 (five stores). - Strong performance in membership, sales, and preopening investment returns, particularly in Texas. - Investment themes including tariffs, price investment, and cost factors like freight and fuel. - Strategic growth with plans for 25-30 new stores annually, capital deployment of $700-$800 million per year. - No explicit mention of orderbook volume, current or expected, or pending orders in the excerpts provided. If you have a specific section or page relating to orderbook or pending orders, please share, and I can provide more targeted information.