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SEC filingBJ's Wholesale Club Holdings, Inc. reported solid financial performance for fiscal year 2025 (ended January 31, 2026). Total revenues were $21.46 billion, with net income of $578.4 million, representing a year-over-year increase from $534.4 million in fiscal year 2024. Key drivers included a 4.6% increase in net sales to $20.96 billion, driven by traffic and unit growth in perishables, grocery, and sundries, and a 9.5% increase in membership fee income to $499.8 million. Operating income was $816.6 million, and the company generated strong operating cash flow of $1.03 billion. The results reflect successful membership growth, with a 90% tenured renewal rate, and disciplined capital allocation, including share repurchases of $252.4 million. Looking forward, the company continues to invest in club expansion and supply chain capabilities to support growth.
BJ's Wholesale Club reported fiscal year 2025 results with total revenues of $21.46 billion and net income of $578.4 million, up from $534.4 million in the prior year. Net sales increased 4.6% to $20.96 billion, driven by traffic growth and a net increase of thirteen clubs and gas stations. Membership fee income grew 9.5% to $499.8 million, supported by higher-tier penetration and a fee increase effective January 2025. Operating income was $816.6 million. The company delivered strong cash flow from operations of $1.03 billion and repurchased 2.6 million shares for $252.4 million. Adjusted EPS was $4.40, compared to $4.05 in fiscal year 2024.
Revenue growth was driven by a 4.6% increase in net sales to $20.96 billion. Comparable club sales grew 1.0%, with merchandise comparable sales up 2.6% and gasoline comparable sales down 1.6%. The perishables, grocery, and sundries division saw a 2.9% increase, led by fresh meat, produce, dairy, nutrition, candy, and snacks. General merchandise and services grew 1.0%, with strength in consumer electronics and apparel, partially offset by headwinds in home and seasonal categories. Membership fee income rose 9.5% to $499.8 million, reflecting strong acquisition, retention, and higher-tier penetration. Private label brands Wellsley Farms and Berkley Jensen represented approximately 27% of net sales, excluding gasoline.
Gross profit was $4.00 billion (calculated as total revenues of $21.46B minus cost of sales of $17.46B), with a gross margin of 18.6%. The merchandise gross margin rate remained flat compared to fiscal year 2024. Cost of sales was 83.3% of net sales, slightly improved from 83.5% in the prior year. Selling, general, and administrative expenses increased 6.4% to $3.15 billion, driven by labor, occupancy, and operational costs from new club openings and increased depreciation. Operating income was $816.6 million, with an operating margin of 3.8%. The effective tax rate was 25.3%, down from 25.9% in fiscal year 2024, due to benefits from tax credits.
Net cash provided by operating activities was $1.03 billion, up from $900.9 million in fiscal year 2024, driven by higher net income and favorable working capital fluctuations. Adjusted free cash flow was $331.0 million, up from $312.9 million. Net cash used in investing activities was $702.3 million, primarily for property and equipment additions. Net cash used in financing activities was $309.7 million, including share repurchases and net payments on revolving lines of credit. The balance sheet shows total assets of $7.51 billion, with $1.99 billion in current assets and $2.67 billion in current liabilities. Total debt was $519.1 million ($120.0M short-term + $399.1M long-term), and stockholders' equity was $2.20 billion. Liquidity included $46.2 million in cash and $1.04 billion in unused revolving capacity.
The company continues to execute its growth strategy, with investments in new clubs and distribution centers, including a fourth non-perishable distribution center in Ohio expected to open in 2027. Management expects SG&A to increase due to investments in comparable sales growth and footprint expansion. The company prioritizes disciplined capital allocation, balancing reinvestment in growth and share repurchases. Risk factors include economic trends affecting consumer spending, gasoline price volatility, inflation, and supply chain constraints. The company believes current resources, including operating cash flows and borrowing capacity, are sufficient to finance operations for at least the next twelve months.