BJ’s Wholesale Stock Rises on Strong Q3 Profits, Membership Fee Hike | Global News Avenue

BJ’s Wholesale Club (BeijingShares rose Thursday morning after the warehouse retailer reported better-than-expected third-quarter earnings despite sales slightly missing expectations.

The retailer reported sales of $5.1 billion. income The quarter was up about 3% year over year, but was just a few million dollars shy of the $5.11 billion analysts had forecast, according to estimates compiled by Visible Alpha. net income It also increased nearly 20% from last year to $155.75 million, which was better than analysts’ expectations of $124.09 million.

Comparable store sales It rose 1.5% in the quarter, slightly below analysts’ expectations of 1.6%, with BJ’s saying it sees threats to the economy Port strike begins all summer Suspended in October Sales increased as shoppers braced for potential supply disruptions.

Membership fees to rise, guidance to be lifted

BJ’s also announced that starting January 1, its membership fee Club and Club+ memberships will increase to $60 and $120, respectively, from the previous $55 and $110. The more expensive tiers give BJ’s members access to a wider range of discounts and rewards.

This move follows Similar price increases From warehouse retail competitor Costco (cost) That Effective in Septemberalso the first time in seven years.

The company’s board of directors also approved a new $1 billion stock repurchase program. The previous plan expires in January and the new plan will run until January 2029.

For the full fiscal year, the company also raised its forecast for comparable sales growth, excluding the impact of gas station sales, to 2.3% to 2.4%, up from the previous range of 1% to 2%. BJ’s also said its full-year adjusted Earnings per share (EPS) The price per share should be between $3.90 and $4.00, up from the previous range of $3.75 to $4.00.

BJ’s shares rose more than 6% to $91.42 in early trading Thursday.