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BJ’s Wholesale Club (NYSE:BJ) fell 1.6% after the company revised guidance and signaled caution on the U.S. consumer.
For the fiscal year ending February 3, sales will increase by 2% from the previous year, the company forecast. Previously, comparable club sales were expected to increase 4% to 5%. That compares to the average analyst estimate of 5.96% growth.
For the second fiscal quarter, the company reported non-GAAP EPS of $0.97, which beat the average analyst estimate by $0.06. Revenue of $4.96B missed by $210M.
“As we look ahead, we remain confident in our ability to maintain the momentum in our traffic and market share gains due to our unrelenting focus on value. However, we also continue to navigate shifts in consumer behavior driven by the broader macroeconomic environment,” Chief Financial Officer Laura Felice said in a statement.
Last week, Evercore ISI initiated a Negative Tactical Trading Call on the retailer.
“BJ’s is navigating a rocky road with a disinflationary backdrop and lackluster discretionary demand that is forecast to decelerate into 2H23 as per our Retail Sales Lead Indicator,” analyst Greg Melich and team wrote in a note.
Evercore’s concerns are primarily associated with the second half outlook and a more conservative EPS guide than the flat year-over-year expectation from a few months ago.
Shares of BJ are down 3.4% over the past 12 months.