MW BJ's Wholesale's earnings show that cheap gas matters for people

By Tomi Kilgore

Comparable sales for the latest quarter rose 6.3%, but were only up 1.5% if gasoline sales are excluded

BJ's Wholesale's stock rallies as earnings got a big boost from gasoline sales.

Shares of BJ's Wholesale Club rallied in early Friday trading after the membership-based warehouse retailer's fiscal first-quarter earnings beat expectations, saying demand for its discount gasoline provided a big boost.

The results came as consumers are increasingly feeling the pressure of stubbornly high inflation, particularly as the continuation of the Iran war has kept oil and gas prices at historically high levels. The national average for a gallon of gas has held above the key $4.50 level, according to AAA, with people paying more than $6 a gallon in some states.

Those high prices benefited BJ's Wholesale $(BJ)$, which has seen income from membership fees grow and gasoline sales jump, as data showed the company was among those offering the lowest gas prices.

"We delivered a strong first quarter as our value proposition continued to resonate with members across our clubs and at our gas stations," said CEO Bob Eddy.

The stock climbed 1.3% in premarket trading.

For the quarter to May 2, comparable sales - or sales in stores open at least 13 months - jumped 6.3% from a year ago. But if gasoline sales were excluded, comparable sales rose just 1.5%, just below the average analyst estimate compiled by FactSet of 1.6% growth.

Total revenue for the quarter increased 9.9% to $5.66 billion, above the FactSet consensus of $5.44 billion, with membership fee income also up 9.9% to $132.4 million to beat expectations of $131.6 million.

Net income fell 4.7% to $142.7 million, while adjusted earnings per share of $1.10 beat the FactSet consensus of $1.03.

The results followed those of discount-retail giant Walmart $(WMT)$ on Thursday, in which CEO John Furner said, according to a FactSet transcript, that "members are tapping into their fuel savings benefits even more" during the current period of elevated prices. Rival Costco Wholesale $(COST)$ is slated to report earnings next week, on May 28.

Read: People are putting less gas in their tanks as high prices crimp budgets, Walmart says.

Looking ahead, BJ's Wholesale said it was keeping its full-year outlook for comparable sales, excluding gasoline, unchanged at 2% to 3% growth, and its guidance range for adjusted EPS at $4.40 to $4.60.

BJ's stock has gained 4.9% in 2026 through Thursday, while Costco shares have rallied 21.8% and the S&P 500 index SPX has advanced 8.8%.

-Tomi Kilgore

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May 22, 2026 07:48 ET (11:48 GMT)

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