BJ's Q1 sales up 10% on expansion, but comps slow to 1.5% as margins compress and cash flow turns negative

Filed May 28, 2026 · Period ending May 2, 2026 · Compared to 10-Q May 29, 2025 · ~2 min read

Key Changes

• high

  Merchandise comparable club sales decelerated sharply from 3.9% to 1.5%, driven by perishables deflation (especially eggs) and weakness in household cleaning and health/beauty categories, partially offset by consumer electronics strength.

  MD&A: Comparable Sales verify on EDGAR →
• high

  Net income fell 5% to $142.7M despite 10% revenue growth, as effective tax rate jumped 480 basis points to 27.0% due to lower stock-based compensation benefits, and merchandise margins compressed 10 basis points from pricing investments.

  MD&A: Net Income & Tax Rate verify on EDGAR →
• high

  Operating cash flow declined $68M to $140M on unfavorable working capital swings; adjusted free cash flow turned negative $42M vs. positive $68M prior year. Company drew $255M on revolver to fund $207M in accelerated share repurchases.

  MD&A: Cash Flow & Liquidity verify on EDGAR →