BJ's Wholesale Club Holdings, Inc. reported strong financial performance for the second quarter and first half of fiscal year 2024, ending August 3, 2024. The company achieved net sales of $5.1 billion for the thirteen weeks, reflecting a 4.8% increase from $4.9 billion in the same period last year. Total revenues for the quarter rose to $5.2 billion, up from $5.0 billion in the prior year. For the first six months, net sales reached $9.9 billion, a 4.4% increase compared to $9.5 billion in the first half of fiscal year 2023.

The growth in sales was primarily driven by increased traffic and unit growth, particularly in the grocery and perishable divisions, alongside the addition of six new clubs compared to the previous year. Merchandise comparable club sales increased by 2.4% in Q2, with notable growth in groceries, especially fresh produce, dairy, and beverages. However, general merchandise sales faced some pressure, particularly in seasonal categories.

Operating income for the second quarter was $203.7 million, slightly up from $200.3 million in the same quarter last year. Net income for the quarter increased to $145.0 million from $131.3 million, resulting in a basic income per share of $1.09, compared to $0.99 in the prior year. For the first half of fiscal year 2024, net income was $256.0 million, up from $247.4 million in the same period last year.

Membership fee income also saw significant growth, reaching $113.1 million in Q2, a 9.1% increase from $103.7 million in Q2 FY 2023. The total membership fee income for the first six months was $224.5 million, an 8.9% increase year-over-year, reflecting strong member acquisition and retention.

The company reported an increase in cash and cash equivalents to $38.1 million as of August 3, 2024, compared to $26.2 million a year earlier. Net cash provided by operating activities for the first half was $422.2 million, significantly higher than $269.5 million in the same period last year.

BJ's continues to invest in its infrastructure, with capital expenditures increasing to $239.6 million in the first half of fiscal year 2024, up from $208.3 million in the prior year. The company also extended the maturity date of its First Lien Term Loan to February 3, 2029, while maintaining a strong liquidity position with $926.6 million in unused capacity under its ABL Revolving Facility.

Overall, BJ's Wholesale Club demonstrated robust growth in sales and profitability, supported by strategic investments and a strong membership base.