Bj's Wholesale Club Holdings, Inc. · NYSE:BJ
Bj's Wholesale Club — Q4 2024 Earnings Presentation
21 slides from Bj's Wholesale Club's earnings presentation, Mar 6, 2025
Slide 1: BJ's Wholesale Club Investor Presentation
BJ’s Wholesale Club Investor Presentation March 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements: This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward- looking statement
Slide 3: Q4 FY24: Stronger-than-expected quarter caps a record year
Q4 FY24: Stronger-than-expected quarter caps a record year Our strategic priorities power a stronger future Q4 FY24 results5 Unbeatable Deliver Improve Grow our $5.2B member value member loyalty footprint Net sales -1.7% vs. Q4 FY23, or experience conveniently +5.4% ex. the extra week in Q4 FY23 7.5
Slide 4: Key investment highlights
Key investment highlights Advantaged Loyal membership Differentiated Accelerated Prudent capital business model in base that is shopping expansion of allocation strategy a favorable market growing in size and experience focused highly profitable maximizes backdrop quality on fresh, value club base s
Slide 5: The warehouse club model offers significant structural advantages
The warehouse club model offers significant structural advantages Operate efficiently • Limited SKUs support pallet presentation, driving scale and inventory turns • Requires less labor in club • Efficient distribution • Lower per square foot build-out costs Constantly reinvest into value • ~25% bet
Slide 6: BJ's and the broader warehouse club channel is growing and taking share
BJ’s and the broader warehouse club channel is growing and taking share Total addressable market in U.S. U.S. warehouse club market size BJ’s has outperformed, driving share gains ($ in B) $298 ‘07-24 CAGR 3.7% U.S. sales growth by channel U.S. total retail (2019 – 2024 CAGR) $278 (ex. auto) 1 $269
Slide 7: MFI has grown every year for over 25 years
MFI has grown every year for over 25 years ($ in M) $457 $421 $397 $361 $333 $302 $283 $255 $259 $242 $243 $247 $229 $210 $191 $173 $175 $180 $159 $139 $150 $118 $124 $106 $79 $90 $56 $66 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY
Slide 8: BJ's go-to-market strategy is differentiated
BJ’s go-to-market strategy is differentiated vs. Club vs. Grocery vs. Mass channel Broader assortment ~25% lower prices1 Price below mass channel break-even Smaller pack sizes Treasure hunt Larger pack sizes Smaller club format Services & fuel Convenient locations Full-service deli 1 25% savings bas
Slide 9: We strive to deliver a great member experience grounded in value
We strive to deliver a great member experience grounded in value How members save at BJ’s Illustrative member savings1 Lower prices EDLP savings Fresh food and deli assortment can fulfill weekly grocery shopping needs Coupons Quality own brand products ~10x Gas savings Return on Digital app allows f
Slide 10: Our goal is to deliver convenience to our members
Our goal is to deliver convenience to our members 1 2 3 Digitally-enabled sales In-club conveniences Targeted messaging and Price scan retail media program BOPIC1 / Curbside pickup Same-day delivery In-club coupons Ship-to-home, Deli pre-ordering Express Pay, other2 Product location 1 Buy online, pi
Slide 11: Our digital offerings have contributed meaningfully to our growth
Our digital offerings have contributed meaningfully to our growth 1 Digitally engaged members are ~2x more valuable 2 driven by greater trips, spend and renewal FY24 digitally-enabled comp sales grew 53% on a 2-yr stack 13% 2% FY18 FY24 Digital penetration %3 1 Members shopping online or in-club usi
Slide 12: We have an advantaged real estate position built over 40+ years
We have an advantaged real estate position built over 40+ years… Uxbridge, MA Ambient DC We have an industry leading footprint on Rocky Hill, CT the east coast and are expanding Perishable DC Burlington, NJ Ambient DC 253 189 21 Elkton, MD Clubs1 Gas stations1 States1 Perishable DC Commercial Point,
Slide 13: ...and have accelerated our growth in recent years
…and have accelerated our growth in recent years Club count growth Expect 10 to 12 new clubs per year 10+ 9 Recent openings prove our model works 8 7 5 4 New ambient DC in Commercial Point, OH to support growth (estimated 2027 opening) 1 1 1 1 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 and St
Slide 14: We have delivered significant growth since 2018
We have delivered significant growth since 2018 FY24 vs. FY18 +58% +61% 90% +92% Net sales MFI Tenured Adjusted renewal rate EBITDA1 +205% $2.7B 0.5x $816M Adjusted EPS 1 Cumulative adjusted Net debt to adjusted Cumulative share free cash flow 1 EBITDA1 repurchases 1 Refer to Appendix section for a
Slide 15: Our long-term financial targets reflect continued momentum
Our long-term financial targets reflect continued momentum Comparable Total revenues EPS club sales 1 LSD% – MSD% MSD% HSD% – LDD% growth growth growth 1 Excluding the impact of gasoline sales 15
Slide 16: We are maximizing shareholder value through disciplined capital allocation
We are maximizing shareholder value through disciplined capital allocation Reinvest for long-term growth Maintain strong balance sheet Return cash to shareholders Highest capital return priority remains De-levered balance sheet since 2018 initial Share repurchase remains the preferred investing in t
Slide 17: Appendix
Appendix
Slide 18: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations Adjusted EBITDA (in M) FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Income from continuing operations $ 52 $ 127 $ 188 $ 421 $ 427 $ 514 $ 524 $ 534 Interest expense, net 197 165 108 84 59 47 65 51 Provision (benefit) for income taxes (28) 12 56 137 131 176 212 186 Deprec
Slide 19: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations Net debt to LTM adjusted EBITDA (in M) FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Total debt $ 2,712 $ 1,801 $ 1,681 $ 1,106 $ 749 $ 853 $ 717 $ 574 Less: Cash and cash equivalents 35 27 30 44 45 34 36 28 Net debt $ 2,677 $ 1,774 $ 1,650 $ 1,063 $ 703 $ 819 $ 681 $ 546
Slide 20: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations Adjusted EPS (in M, except per share data) FY18 FY19 FY20 FY21 FY22 FY23 FY24 Net income as reported $ 127 $ 187 $ 421 $ 427 $ 513 $ 524 $ 534 Adjustments: Offering costs 4 2 - - - - - Stock-based compensation related IPO 49 - - - - - - Management fees 3 - - - - - -
Slide 21: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations Adjusted free cash flow (in M) FY18 FY19 FY20 FY21 FY22 FY23 FY24 Net cash provided by operating activities $ 427 $ 355 $ 869 $ 832 $ 788 $ 719 $ 901 Less: Additions to property & equipment, net of disposals 146 197 218 324 398 467 588 Plus: Proceeds from sale leaseb
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