By Katherine Hamilton

BJ's shares climbed after the company said it is well-positioned to keep members coming back through low consumer confidence and tariffs.

The stock increased 13% to $113.69 on Thursday, hitting a 52-week high. Shares are up 44% over the past 12 months.

BJ's ability to keep members spending at the wholesale club through high inflation over the past few years, as well as its relatively low exposure to tariff-effected imports, makes the company "cautiously optimistic" it can withstand the uncertainty ahead, Chief Financial Officer Laura Felice said.

"Members remain highly value-conscious," Chief Executive Robert Eddy said on a call with analysts Thursday. "Members are relying on BJ's as their one-stop shopping destination, as exhibited by the growth in spend and trips across all income levels in the fourth quarter."

Same-store sales grew 4% in the fourth quarter, ahead of the 3.1% growth analysts polled by FactSet expected. That brought its full-year growth to 2.5%, beating its own guidance, as well as Wall Street's.

Traffic, which grew for a seventh consecutive year, was a major contributing factor to sales growth, Eddy said. The membership renewal rate was 90% as cost-wary customers kept coming back to the store for low prices.

Those dynamics are expected to continue into 2025, Eddy said. Periods of rising prices and supply chain disruption have historically been good for BJ's because customers turn to the warehouse when wallets are stretched, he said.

BJ's outlook was mixed, similarly to many other big-box retailers this earnings season, D.A. Davidson analyst Michael Baker said in a note. It expects to make $4.10 a share to $4.30 a share in annual adjusted earnings this year, compared with the $4.28 expected by analysts.

Tariffs were not included in the outlook, executives said. The duties could shape inflation and consumer demand, but BJ's sees itself as relatively sheltered from direct effects compared with other retailers.

A few percentage points of its business come from China, Eddy said. BJ's does get more imports from Mexico and Canada, especially for its grocery business. Sales in the first half of the year are expected to be stronger than the second half, CFO Felice said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

March 06, 2025 12:10 ET (17:10 GMT)

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