BJ's Wholesale Club Holdings, Inc. (NYSE: BJ) reported solid fourth-quarter results for fiscal 2024, with adjusted earnings per share (EPS) of $0.93 surpassing analysts' expectations of $0.87. Despite a 1.5% year-over-year decline in revenue to $5.28 billion, the company's performance was underpinned by strong membership growth and robust digital sales.

The wholesale club operator's total comparable club sales increased by 4% during the quarter, while comparable club sales excluding gasoline rose by an impressive 4.6%, led by higher traffic. Membership fee income, a key driver of BJ's growth, climbed 7.9% to $117 million, fueled by strength in new membership acquisitions, higher tier membership penetration, and a 90% tenured member renewal rate.

BJ's continued to make strides in its digital transformation, with digitally enabled comparable sales surging 26%, reflecting a two-year stacked growth of 53%. This underscores the company's success in enhancing its omnichannel capabilities and meeting evolving customer demands.

Despite the solid performance, BJ's adjusted EBITDA decreased by 9% to $264.6 million, primarily due to increased labor and occupancy costs associated with new club and gas station openings, as well as higher incentive compensation expenses.

Looking ahead to fiscal 2025, BJ's provided guidance for adjusted EPS in the range of $4.10 to $4.30, compared to the analyst consensus estimate of $4.28. The company expects comparable club sales excluding gasoline to increase by 2% to 3.5% year-over-year. Additionally, BJ's plans to invest approximately $800 million in capital expenditures, focusing on expanding its club network and constructing a new ambient distribution center.