How did BJ’s Wholesale Club (NYSE:BJ) perform in Q1 2026?

BJ’s reported net income of $142.7 million for Q1 2026, down from $149.8 million in the same period last year, despite a 4.3% increase in adjusted EBITDA to $298.1 million.

What drove the decline in net income?

The drop was mainly due to rising overhead from new club and gas station openings, higher labor and occupancy costs, targeted competitive pricing, and an increased tax burden.

How did comparable sales perform?

Total comparable club sales grew 6.3%, led by strong fuel demand, while core merchandise comparable sales rose more modestly by 1.5%, indicating cautious consumer spending.

How did gross profit and margins change?

Gross profit increased to $1.03 billion from $969.5 million, but the core merchandise gross margin rate dipped about 10 basis points due to investments in competitive pricing and inflationary pressures.

How did membership fee revenue trend?

Membership income rose to $132.4 million from $120.4 million, reflecting strong acquisition, high renewal rates, and deeper penetration into premium reward tiers.

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BJ’s Wholesale net income dips to $142.7M as expansion costs offset membership Gains

Written by Heidi Cuthbert Published May. 22 2026Last Updated May. 22 2026

BJ’s Wholesale Club Holdings (NYSE:BJ) reported a slight decline in first-quarter net income, as aggressive pricing strategies and rising overhead from footprint expansion offset resilient gains in membership fee revenue.

For the thirteen weeks ended May 2, 2026, net income fell to $142.7 million, down from $149.8 million in the first quarter of fiscal 2025.

The contraction came despite a 4.3% increase in adjusted EBITDA, which rose to $298.1 million from $285.8 million in the prior-year period.

Total comparable club sales climbed 6.3%, significantly bolstered by robust consumer fuel demand.

Stripping out the volatile impact of gasoline sales, core merchandise comparable sales grew by a more modest 1.5%, underscoring a cautious spending environment among warehouse club shoppers.

Total gross profit advanced to $1.03 billion from $969.5 million a year earlier.

However, the core merchandise gross margin rate slipped by approximately 10 basis points.

Management attributed the compression to targeted investments in competitive pricing to retain value-conscious shoppers, a headwind that was only partially mitigated by retroactively recognized tariff refund benefits.

A primary pillar of strength for the retailer remained its subscription base.

Membership fee income jumped to $132.4 million, up from $120.4 million in the first quarter of fiscal 2025.

The double-digit expansion was fueled by a combination of elevated membership acquisition, strong renewal rates, and deeper penetration into higher-tier reward tiers across both established and newly opened locations.

The financial results were also heavily impacted by structural growth initiatives.

Selling, general, and administrative (SG&A) expenses escalated to $806 million, compared to $760.9 million in the prior year's first quarter.

The elevated spending was driven by higher labor, occupancy, and operational costs tied to launching new clubs and gas stations.

A strategic push toward expanding the company’s portfolio of owned locations also led to a significant year-over-year increase in depreciation expenses.

Elsewhere, the company's bottom line faced further pressure from an increased tax burden.

Income tax expenses climbed to $52.8 million from $42.8 million in the prior-year period, driven by higher pre-tax income and a reduction in tax benefits derived from stock-based compensation programs.