BJ’s Wholesale Club (US:BJ) ZACKS·2024-08-16 12:21Core Viewpoint - BJ's Wholesale Club Holdings, Inc. is expected to report an increase in revenue and earnings for the second quarter of fiscal 2024, with revenue estimated at $5.16 billion, reflecting a 3.9% growth year-over-year, and earnings per share estimated at 99 cents, indicating a 2.1% increase from the previous year [1][2]. Revenue Expectations - The Zacks Consensus Estimate for BJ's revenue is $5.16 billion, which represents a 3.9% increase from the prior year's figure [1]. - Merchandise comparable club sales are anticipated to rise by 1.5% for the quarter [5]. Earnings Expectations - The earnings per share estimate for the second quarter is stable at 99 cents, suggesting a year-over-year increase of 2.1% [2]. - BJ's has a trailing four-quarter earnings surprise average of 4.5%, with the last quarter's earnings surpassing estimates by 2.4% [3]. Strategic Initiatives - The company is focusing on simplifying assortments, enhancing marketing and merchandising capabilities, expanding into high-demand categories, and building its own-brand portfolio [4]. - BJ's commitment to improving omnichannel capabilities and expediting new club openings is contributing to growth in membership signups and renewals [4]. Cost Considerations - There may be challenges related to potential deleverage in SG&A expenses, which are expected to increase by 4.9% year-over-year, leading to a 20 basis points deleverage as a percentage of total revenues [6]. Earnings Prediction Model - The Zacks model indicates a likely earnings beat for BJ's, supported by a positive Earnings ESP of +1.24% and a Zacks Rank of 2 (Buy) [7].