On this page of StockholderLetter.com we present the latest annual shareholder letter from BJ's Wholesale Club Holdings, Inc. — ticker symbol BJ. Reading current and past BJ letters to shareholders can bring important insights into the investment thesis.
2024 Annual Report
Dear fellow shareholders, Fiscal 2024 marked another milestone year for BJ s Wholesale Club, showcasing exceptional progress across our strategic priorities and delivering strong financial performance. Amid a dynamic operating environment, we again demonstrated strength, achieving record net sales, membership fee income and adjusted earnings per share. This success underscores our ongoing commitment to our four strategic pillars: improving member loyalty, delivering an unbeatable shopping experience, conveniently delivering value and growing our footprint. Through our consistent execution and focus on value, we deepened our relevance with our members and grew our market share position. Improving member loyalty Membership is the cornerstone of our business. We continue to improve membership in both size and quality. In fiscal 2024, we surpassed 7.5 million members with growth in both new and existing clubs. We also proudly achieved a 90% renewal rate for the third consecutive year. Over the past couple of years, we strengthened our value proposition and enhanced our credit card program to drive lifetime value, resulting in strong renewals, member count growth, and upgrades into our higher tiers. In fiscal 2024, our higher-tier members comprised 39% of our membership base, an increase of 14 percentage points since fiscal 2018. Our efforts led to membership fee income growth of 8.5% compared to fiscal 2023 resulting in a record $456.5 million in fiscal 2024. Merchandising improvements driving unbeatable member shopping experiences Our merchandising strategies are elevating our shopping experience and contributed to our comparable club sales growth of 2.8% in fiscal 2024 (excluding gas sales). We are making progress on our general merchandise transformation to strengthen the treasure hunt at BJ s. Our category management process ingrained a more rigorous member-centric mindset into assortment planning. As part of this process, we reset many categories to drive better member engagement and more profitable sales. We also continued to innovate our own brands, offering high-quality products at significant savings to help members stretch their budgets. Our own brands comprised approximately 26% of our merchandise sales in fiscal 2024 and we remain on track to reach our goal of 30% over time. Finally, our fresh initiatives have sparked meaningful produce demand since the full rollout in the second quarter. We launched Fresh 2.0 based on a simple yet powerful observation: Members who rely on BJ s as their primary fresh destination are among our most loyal members. As a result, we believed that winning more members fresh produce shop would lead to greater trip frequency and larger baskets. Our efforts have boosted our credibility in fresh, exhibited by our double-digit produce comps in fiscal 2024. While our performance in produce alone validates our work, we are especially encouraged by the positive effect on overall member behavior. Early indications since launching Fresh 2.0 show that tenured members new to buying fresh produce at BJ s are making more trips and, on average, shopping across more categories than they have in the past. We re thrilled with the progress we are making in delivering unbeatable member experiences to deepen member loyalty, which will power our growth longer term. Delivering convenience through digital Our digital business has grown in leaps and bounds as members increasingly shop us to save time in addition to money. Our digital conveniences such as buy-online-pickup-in-club, curbside pickup and same-day delivery have fueled double-digit digitally enabled comparable sales growth each year for the past four years. Digitally enabled comparable sales grew 25% in fiscal 2024. Our mobile app also supplements the shopping experience when members are in our clubs, allowing them to clip and use coupons digitally and skip the lines with ExpressPay checkout. Our autonomous inventory robots, which we launched across our clubs in fiscal 2023, have enabled product location capabilities for our members in
addition to driving team member efficiencies. We augmented the app experience to engage with members between trips as well, incorporating personalized messaging, product returns functionality, an AI-powered search engine to facilitate shopping list creation and other touchpoints to prompt the next BJ s visit. Today, about 60% of members engage with us digitally in some form. As members increasingly embrace our digital conveniences and reward us with their spending and loyalty, we will continue investing to drive lifetime value. Prudently accelerating our footprint expansion In fiscal 2024, we opened seven new clubs and 12 gas stations, including our 250th club, marking our entry into Kentucky, our 21st state. Our new clubs continue to outperform expectations, driving our confidence in our longterm growth plans. Consequently, we have built a strong pipeline to accommodate 25 to 30 additional clubs over the next two fiscal years, including our plans to enter the Dallas-Fort Worth market in fiscal 2026. We also recently announced a new highly automated ambient distribution center in Ohio, which we expect to open in 2027. This facility is geographically positioned to support our growing footprint and demonstrates our commitment to operational efficiency and future growth. Commitment to shareholder value We continue to maintain a disciplined approach to capital allocation, leveraging our strong balance sheet now at its lowest leverage since our initial public offering to invest strategically in our growth while returning excess cash to shareholders. We have returned over $815 million to our shareholders through share repurchases since fiscal 2018. We believe our capital allocation strategy positions us to deliver long-term shareholder value. Taking care of the families who depend on us Our long-term priorities are grounded in our purpose of taking care of the families who depend on us and our team members are committed to bringing our purpose to life every day. BJ s has a longstanding commitment to nourishing the communities in which we live and work. For over 15 years, we have worked with Feeding America and its network of food banks, providing more than 155 million meals for those in need. Our team members are active members of our communities, volunteering their time to make a positive difference. In closing, I want to thank our dedicated team members and our members for their continued loyalty, and to you, our shareholders, for your ongoing confidence in BJ s Wholesale Club. We are excited about the opportunities ahead and look forward to delivering continued success (and great value) in the future. Sincerely, Bob Eddy Chairman and Chief Executive Officer
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 • shareholder letter icon 5/9/2025 Letter Continued (Full PDF)
 • stockholder letter icon 5/4/2023 BJ Stockholder Letter
 • stockholder letter icon 5/9/2024 BJ Stockholder Letter
 • stockholder letter icon More "Department Stores" Category Stockholder Letters
 • Benford's Law Stocks icon BJ Benford's Law Stock Score = 76


BJ Shareholder/Stockholder Letter Transcript:

2024 Annual Report

Dear fellow shareholders,
Fiscal 2024 marked another milestone year for BJ   s Wholesale Club, showcasing exceptional progress across our
strategic priorities and delivering strong financial performance. Amid a dynamic operating environment, we again
demonstrated strength, achieving record net sales, membership fee income and adjusted earnings per share.
This success underscores our ongoing commitment to our four strategic pillars: improving member loyalty,
delivering an unbeatable shopping experience, conveniently delivering value and growing our footprint. Through
our consistent execution and focus on value, we deepened our relevance with our members and grew our market
share position.
Improving member loyalty
Membership is the cornerstone of our business. We continue to improve membership in both size and quality. In
fiscal 2024, we surpassed 7.5 million members with growth in both new and existing clubs. We also proudly
achieved a 90% renewal rate for the third consecutive year. Over the past couple of years, we strengthened our
value proposition and enhanced our credit card program to drive lifetime value, resulting in strong renewals,
member count growth, and upgrades into our higher tiers. In fiscal 2024, our higher-tier members comprised 39%
of our membership base, an increase of 14 percentage points since fiscal 2018. Our efforts led to membership fee
income growth of 8.5% compared to fiscal 2023 resulting in a record $456.5 million in fiscal 2024.
Merchandising improvements driving unbeatable member shopping experiences
Our merchandising strategies are elevating our shopping experience and contributed to our comparable club sales
growth of 2.8% in fiscal 2024 (excluding gas sales). We are making progress on our general merchandise
transformation to strengthen the treasure hunt at BJ   s. Our category management process ingrained a more
rigorous member-centric mindset into assortment planning. As part of this process, we reset many categories to
drive better member engagement and more profitable sales. We also continued to innovate our own brands,
offering high-quality products at significant savings to help members stretch their budgets. Our own brands
comprised approximately 26% of our merchandise sales in fiscal 2024 and we remain on track to reach our goal
of 30% over time.
Finally, our fresh initiatives have sparked meaningful produce demand since the full rollout in the second quarter.
We launched Fresh 2.0 based on a simple yet powerful observation: Members who rely on BJ   s as their primary
fresh destination are among our most loyal members. As a result, we believed that winning more members    fresh
produce shop would lead to greater trip frequency and larger baskets. Our efforts have boosted our credibility in
fresh, exhibited by our double-digit produce comps in fiscal 2024. While our performance in produce alone
validates our work, we are especially encouraged by the positive effect on overall member behavior. Early
indications since launching Fresh 2.0 show that tenured members new to buying fresh produce at BJ   s are making
more trips and, on average, shopping across more categories than they have in the past. We   re thrilled with the
progress we are making in delivering unbeatable member experiences to deepen member loyalty, which will power
our growth longer term.
Delivering convenience through digital
Our digital business has grown in leaps and bounds as members increasingly shop us to save time in addition to
money. Our digital conveniences such as buy-online-pickup-in-club, curbside pickup and same-day delivery have
fueled double-digit digitally enabled comparable sales growth each year for the past four years. Digitally enabled
comparable sales grew 25% in fiscal 2024.
Our mobile app also supplements the shopping experience when members are in our clubs, allowing them to clip
and use coupons digitally and skip the lines with ExpressPay checkout. Our autonomous inventory robots, which
we launched across our clubs in fiscal 2023, have enabled product location capabilities for our members     in

addition to driving team member efficiencies. We augmented the app experience to engage with members between
trips as well, incorporating personalized messaging, product returns functionality, an AI-powered search engine
to facilitate shopping list creation and other touchpoints to prompt the next BJ   s visit. Today, about 60% of
members engage with us digitally in some form. As members increasingly embrace our digital conveniences and
reward us with their spending and loyalty, we will continue investing to drive lifetime value.
Prudently accelerating our footprint expansion
In fiscal 2024, we opened seven new clubs and 12 gas stations, including our 250th club, marking our entry into
Kentucky, our 21st state. Our new clubs continue to outperform expectations, driving our confidence in our longterm growth plans. Consequently, we have built a strong pipeline to accommodate 25 to 30 additional clubs over
the next two fiscal years, including our plans to enter the Dallas-Fort Worth market in fiscal 2026.
We also recently announced a new highly automated ambient distribution center in Ohio, which we expect to open
in 2027. This facility is geographically positioned to support our growing footprint and demonstrates our
commitment to operational efficiency and future growth.
Commitment to shareholder value
We continue to maintain a disciplined approach to capital allocation, leveraging our strong balance sheet     now
at its lowest leverage since our initial public offering     to invest strategically in our growth while returning excess
cash to shareholders. We have returned over $815 million to our shareholders through share repurchases since
fiscal 2018. We believe our capital allocation strategy positions us to deliver long-term shareholder value.
Taking care of the families who depend on us
Our long-term priorities are grounded in our purpose of taking care of the families who depend on us and our team
members are committed to bringing our purpose to life every day. BJ   s has a longstanding commitment to
nourishing the communities in which we live and work. For over 15 years, we have worked with Feeding America
and its network of food banks, providing more than 155 million meals for those in need. Our team members are
active members of our communities, volunteering their time to make a positive difference.
In closing, I want to thank our dedicated team members and our members for their continued loyalty, and to you,
our shareholders, for your ongoing confidence in BJ   s Wholesale Club. We are excited about the opportunities
ahead and look forward to delivering continued success (and great value) in the future.
Sincerely,
Bob Eddy
Chairman and Chief Executive Officer


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shareholder letter icon 5/9/2025 Letter Continued (Full PDF)
 

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