MW BJ's will 'hold prices as long as we can' says CEO, amid a tough tariff backdrop

By James Rogers and Tomi Kilgore

BJ's saw members across all income levels pull back on spending during the quarter, according to CEO Bob Eddy

BJ's Wholesale Club reported second-quarter results before market open Friday.

Shares of BJ's Wholesale Club Holdings Inc. were falling Friday, after the membership-based warehouse retailer's second-quarter sales came up short of expectations, even as membership saw strong growth.

However, the company said that it will hold prices at current levels for the time being, even amid a "dynamic" tariff-fueled environment.

During a conference call to discuss the results, Chief Executive Bob Eddy said that the company saw members across all income levels "turn a bit more cautious" during the quarter, driven by the uncertain macro environment.

Eddy said that the tariffs situation and its impact on the broader macro environment and consumer mindset "continues to be ever changing in a difficult backdrop for all parties," according to a FactSet transcript.

The stock $(BJ)$ sank 8.3% in morning trading, heading toward its biggest one-day selloff since it dropped 7.3% on May 23, 2023. It was also headed for its lowest close since Jan. 28. The selloff comes after the stock had bounced around in the premarket in the minutes after the results were reported, going from a loss of as much as 7.6% to a gain of as much as 1.8% before turning back down.

BJ's is running a playbook that it has successfully used in the past to navigate inflation, according to the CEO. "And we are dynamically changing our sourcing according to the fluid situation," he said.

The company "took a deep look" at its buys, changing the country of origin where applicable and resizing its orders, Eddy added. "I'd be remiss if I did not call out that these decisions likely limit our upside versus original expectations for the year."

In response to an analyst's question, Eddy said that BJ's will "hold prices as long as we can." The company will also make sure "that our members understand that we're trying to do the right thing for them," he added.

The company is being a bit cautious from an inventory perspective, but only in categories that it thinks are really discretionary and that have higher tariffs associated with them, according to the CEO. "A good category to think about might be seasonal, holiday decor, where the vast majority of that stuff is built in China and obviously comes with a steep tariff on it," he said. "We'll have a great assortment for our members, but we've ordered less units this year than we have in the past."

On Thursday, Walmart Inc. $(WMT)$, the parent of BJ's rival Sam's Club, said that it is working to avoid additional tariff-related pricing pressure on customers.

Earlier this week, Target Corp. (TGT) Chief Executive Brian Cornell said that the company is making progress in limiting the impact of tariffs, adding that the retail giant was focused on "limiting the impact on our pricing."

In a statement, Eddy said that, "even in a dynamic environment," the company is growing membership and gaining market share. BJ's member count hit a record 8 million members during the quarter, while income from membership fees increased 9%.

For the quarter to Aug. 2, BJ's reported adjusted earnings per share, which excludes nonrecurring items, rose to $1.14 from $1.09 in the same period a year ago, to top the average analyst EPS estimate compiled by FactSet of $1.09.

BJ's comparable-club sales, or sales in stores open at least 13 months, increased 2.3% when excluding gasoline sales, but that missed the FactSet consensus for a 3.2% rise. Digitally enabled comparable-club sales grew 34%.

Although BJ's (BJ) results come two weeks before Costco Wholesale Corp. $(COST)$ reports earnings, BJ's sales growth appears to be trailing its larger rival by a wide margin. Costco has already reported a 6.4% jump in comparable sales in July and a 5.8% increase in June.

And rival Sam's Club's comparable sales rose 5.9% in the same period, to beat expectations.

BJ's said total revenue grew 3.4% to $5.38 billion, but that was below the FactSet consensus of $5.49 billion.

For the full fiscal year to Jan. 31, 2026, BJ's lifted its guidance range for adjusted EPS to $4.20 to $4.35 from $4.10 to $4.30, but kept its outlook for comparable-club sales growth unchanged at 2.0% to 3.5%.

BJ's shares have rallied 9% in 2025, while Costco's stock has gained 5.6% and Walmart shares have advanced 8.7%. The S&P 500 index SPX has tacked on 9.7% this year.

-James Rogers -Tomi Kilgore

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August 22, 2025 11:10 ET (15:10 GMT)

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