BJ's Wholesale Club Holdings, Inc 10-Q for FY2022 Q2

BJ's Wholesale Club Holdings, Inc. (BJ)

10-Q 2021-08-26 For: 2021-07-31

Added on April 12, 2026

About this 10-Q

BJ's Wholesale Club Holdings, Inc filed this 10-Q on August 26, 2021, covering the quarter ended July 31, 2021 (FY2022 Q2).

Headline figures

Quarter ended July 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $4.18B; up 5.6% from $3.95B a year earlier
Net income: $110.99M; up 4.1% from net income of $106.62M a year earlier
Diluted EPS: $0.80; up 5.3% from $0.76 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Delaware			45-2936287
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

25 Research Drive
Westborough, Massachusetts			01581
(Address of principal executive offices)			(Zip Code)


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01	BJ	New York Stock Exchange


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth Company	☐


		Page
PART I.	FINANCIAL INFORMATION	5
Item 1.	Financial Statements (Unaudited)	5
	Consolidated Balance Sheets	5
	Consolidated Statements of Operations and Comprehensive Income	6
	Consolidated Statements of Stockholders’ Equity (Deficit)	8
	Consolidated Statements of Cash Flows	10
	Notes to Unaudited Consolidated Financial Statements	11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	30
PART II.	OTHER INFORMATION	31
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults Upon Senior Securities	31
Item 4.	Mine Safety Disclosures	31
Item 5.	Other Information	31
Item 6.	Exhibits	32
	Signature	33


	July 31, 2021		January 30, 2021		August 1, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	42,414	$	43,518	$	168,811
Accounts receivable, net	169,135		172,719		170,595
Merchandise inventories	1,033,555		1,205,695		1,005,274
Prepaid expenses and other current assets	46,446		48,649		64,074
Total current assets	1,291,550		1,470,581		1,408,754
Operating lease right-of-use assets, net	2,138,690		2,058,763		2,043,713
Property and equipment:
Land and buildings	401,589		385,572		395,706
Leasehold costs and improvements	253,042		249,073		217,528
Furniture, fixtures and equipment	1,382,391		1,298,440		1,208,151
Construction in progress	47,034		23,633		26,604
	2,084,056		1,956,718		1,847,989
Less: accumulated depreciation and amortization	(1,242,535)		(1,158,929)		(1,092,311)
Total property and equipment, net	841,521		797,789		755,678
Goodwill	924,134		924,134		924,134
Intangibles, net	129,881		135,123		141,054
Deferred income taxes	2,973		5,737		—
Other assets	18,850		19,403		20,687
Total assets	$	5,347,599	$	5,411,530	$	5,294,020
LIABILITIES
Current liabilities:
Current portion of long-term debt	$	—	$	260,000	$	—
Current portion of operating lease liabilities	134,421		131,513		128,010
Accounts payable	1,029,726		988,074		1,004,725
Accrued expenses and other current liabilities	675,049		651,625		631,500
Total current liabilities	1,839,196		2,031,212		1,764,235
Long-term operating lease liabilities	2,069,148		1,988,840		1,971,634
Long-term debt	747,730		846,175		1,202,209
Deferred income taxes	41,635		45,096		43,111
Other non-current liabilities	161,538		180,880		193,730
Commitments and contingencies (see Note 6)
STOCKHOLDERS’ EQUITY
Preferred stock; par value $0.01; 5,000 shares authorized, and no shares issued or outstanding	—		—		—
Common stock, par value $0.01; 300,000 shares authorized, 144,300 shares issued and 136,347 outstanding at July 31, 2021; 143,428 shares issued and 137,192 outstanding at January 30, 2021; and 142,653 shares issued and 137,923 outstanding at August 1, 2020	1,443		1,434		1,427
Additional paid-in capital	867,792		826,377		798,288
Accumulated deficit	(102,772)		(295,339)		(514,017)
Accumulated other comprehensive loss	(6,225)		(20,528)		(35,650)
Treasury stock, at cost, 7,953 shares at July 31, 2021; 6,236 shares at January 30, 2021; and 4,730 shares at August 1, 2020	(271,886)		(192,617)		(130,947)
Total stockholders’ equity	488,352		319,327		119,101
Total liabilities and stockholders’ equity	$	5,347,599	$	5,411,530	$	5,294,020


	Thirteen Weeks Ended
	July 31, 2021		August 1, 2020
Net sales	$	4,088,402	$	3,871,640
Membership fee income	88,753		82,490
Total revenues	4,177,155		3,954,130
Cost of sales	3,413,625		3,197,752
Selling, general and administrative expenses	598,113		590,814
Pre-opening expense	1,633		1,969
Operating income	163,784		163,595
Interest expense, net	16,428		20,741
Income from continuing operations before income taxes	147,356		142,854
Provision for income taxes	36,359		36,186
Income from continuing operations	110,997		106,668
Loss from discontinued operations, net of income taxes	(9)		(50)
Net income	$	110,988	$	106,618
Income per share attributable to common stockholders—basic:
Income from continuing operations	$	0.82	$	0.78
Loss from discontinued operations	—		—
Net income	$	0.82	$	0.78
Income per share attributable to common stockholders—diluted:
Income from continuing operations	$	0.80	$	0.76
Loss from discontinued operations	—		—
Net income	$	0.80	$	0.76
Weighted average number of common shares outstanding:
Basic	135,521		136,706
Diluted	138,197		139,522
Other comprehensive income:
Amounts reclassified from other comprehensive income, net of tax	$	3,511	$	—
Unrealized gain on cash flow hedge, net of income tax provision of $1,143 and $1,897, respectively	2,940		4,878
Total other comprehensive income	6,451		4,878
Total comprehensive income	$	117,439	$	111,496


	Twenty-Six Weeks Ended
	July 31, 2021		August 1, 2020
Net sales	$	7,870,236	$	7,589,680
Membership fee income	175,141		162,055
Total revenues	8,045,377		7,751,735
Cost of sales	6,555,122		6,258,645
Selling, general and administrative expenses	1,198,023		1,181,175
Pre-opening expense	2,194		4,570
Operating income	290,038		307,345
Interest expense, net	35,713		42,585
Income from continuing operations before income taxes	254,325		264,760
Provision for income taxes	61,742		62,350
Income from continuing operations	192,583		202,410
Loss from discontinued operations, net of income taxes	(16)		(58)
Net income	$	192,567	$	202,352
Income per share attributable to common stockholders—basic:
Income from continuing operations	$	1.42	$	1.48
Loss from discontinued operations	—		—
Net income	$	1.42	$	1.48
Income per share attributable to common stockholders—diluted:
Income from continuing operations	$	1.39	$	1.46
Loss from discontinued operations	—		—
Net income	$	1.39	$	1.46
Weighted average number of common shares outstanding:
Basic	135,615		136,398
Diluted	138,430		138,975
Other comprehensive income (loss):
Amounts reclassified from other comprehensive income, net of tax	$	8,176	$	—
Unrealized gain (loss) on cash flow hedge, net of income tax provision of $2,383 and income tax benefit of $3,524, respectively	6,127		(9,064)
Total other comprehensive income (loss)	14,303		(9,064)
Total comprehensive income	$	206,870	$	193,288


	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Treasury Stock			Total Stockholders’ Equity
	Shares	Amount								Shares	Amount
Balance, January 30, 2021	143,428	$	1,434	$	826,377	$	(295,339)	$	(20,528)	(6,236)	$	(192,617)	$	319,327
Net income	—	—		—		81,579		—		—	—		81,579
Amount reclassified from other comprehensive income (loss), net of tax	—	—		—		—		4,665		—	—		4,665
Unrealized gain on cash flow hedge, net of tax	—	—		—		—		3,187		—	—		3,187
Common stock issued under stock incentive plans	590	6		(6)		—		—		—	—		—
Stock compensation expense	—	—		27,300		—		—		—	—		27,300
Net cash received on option exercises	—	—		1,497		—		—		—	—		1,497
Treasury stock purchases	—	—		—		—		—		(542)	(24,031)		(24,031)
Balance, May 1, 2021	144,018	$	1,440	$	855,168	$	(213,760)	$	(12,676)	(6,778)	$	(216,648)	$	413,524
Net income	—	—		—		110,988		—		—	—		110,988
Amount reclassified from other comprehensive income (loss), net of tax	—	—		—		—		3,511		—	—		3,511
Unrealized gain on cash flow hedge, net of tax	—	—		—		—		2,940		—	—		2,940
Common stock issued under stock incentive plans	223	2		(2)		—		—		—	—		—
Common stock issued under Employees Stock Purchase Plan (ESPP)	59	1		1,876		—		—		—	—		1,877
Stock compensation expense	—	—		7,334		—		—		—	—		7,334
Net cash received on option exercises	—	—		3,416		—		—		—	—		3,416
Treasury stock purchases	—	—		—		—		—		(1,175)	(55,238)		(55,238)
Balance, July 31, 2021	144,300	$	1,443	$	867,792	$	(102,772)	$	(6,225)	(7,953)	$	(271,886)	$	488,352


	Stock Options			Restricted Stock			Restricted Stock Units			Performance Stock
	Shares	Weighted Average Exercise Price		Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Outstanding, January 30, 2021	3,673	$	17.50	1,575	$	26.29	29	$	34.54	527	$	23.96
Granted	—	—		489	44.45		26	46.82		401	44.28
Forfeited/canceled	—	—		(1)	44.45		—	—		(282)	28.98
Exercised/vested	(297)	16.69		(941)	29.18		(29)	34.60		—	—
Outstanding, July 31, 2021	3,376	$	17.58	1,122	$	34.00	26	$	46.82	646	$	38.97


	Carrying Amount		Fair Value
First Lien Term Loan	$	701,920	$	700,032
ABL Facility	50,000		50,000
Total Debt	$	751,920	$	750,032


						Fair Value at
Accounting for cash flow hedges	Notional Amount		Fixed Rate		Balance Sheet Classification	July 31, 2021		January 30, 2021		August 1, 2020
Interest rate swap	$	600,000	3.00	%	Other current liabilities	$	(10,374)	$	(18,828)	$	(26,777)
Interest rate swap	360,000		3.00	%	Other current liabilities	—		—		(16,049)
Interest rate swap	240,000		3.00	%	Other current liabilities	(4,146)		(7,525)		(10,702)
Net carrying amount	$	1,200,000			Total liabilities	$	(14,520)	$	(26,353)	$	(53,528)


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
(in thousands)	July 31, 2021		August 1, 2020		July 31, 2021		August 1, 2020
Net cash provided by operating activities	$	310,348	$	263,790	$	559,313	$	733,692
Less: Additions to property and equipment, net of disposals	73,118		47,750		147,808		82,962
Plus: Proceeds from sale leaseback transactions	2,450		4,061		19,080		4,061
Free cash flow	$	239,680	$	220,101	$	430,585	$	654,791


Statement of Operations Data	Thirteen Weeks Ended						Twenty-Six Weeks Ended
(dollars in thousands)	July 31, 2021			August 1, 2020			July 31, 2021			August 1, 2020
Net sales	$	4,088,402		$	3,871,640		$	7,870,236		$	7,589,680
Membership fee income	88,753			82,490			175,141			162,055
Total revenues	4,177,155			3,954,130			8,045,377			7,751,735
Cost of sales	3,413,625			3,197,752			6,555,122			6,258,645
Selling, general and administrative expenses	598,113			590,814			1,198,023			1,181,175
Pre-opening expenses	1,633			1,969			2,194			4,570
Operating income	163,784			163,595			290,038			307,345
Interest expense, net	16,428			20,741			35,713			42,585
Income from continuing operations before income taxes	147,356			142,854			254,325			264,760
Provision for income taxes	36,359			36,186			61,742			62,350
Income from continuing operations	110,997			106,668			192,583			202,410
Loss from discontinued operations, net of income taxes	(9)			(50)			(16)			(58)
Net income	$	110,988		$	106,618		$	192,567		$	202,352
Operational Data:
Total clubs at end of period	222			219			222			219
Comparable club sales	4.0		%	17.2		%	2.2		%	18.5		%
Merchandise comparable club sales	(3.4)		%	24.2		%	(4.2)		%	25.6		%
Adjusted EBITDA	$	220,140		$	216,850		$	422,549		$	410,765
Free cash flow	239,680			220,101			430,585			654,791


	Twenty-Six Weeks
	July 31, 2021		August 1, 2020
(in thousands)
Net cash provided by operating activities	$	559,313	$	733,692
Net cash used in investing activities	(128,728)		(78,901)
Net cash used in financing activities	(431,689)		(516,184)
Net (decrease) increase in cash and cash equivalents	$	(1,104)	$	138,607


Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1)
May 2, 2021 to May 29, 2021	250,000		$	45.67	250,000	$	124,963,483
May 30, 2021 to July 3, 2021	600,421	(2)	46.88		480,000	102,459,857
July 4, 2021 to July 31, 2021	324,116		48.35		324,116	86,788,245
Total	1,174,537		$	47.03	1,054,116	$	86,788,245


	BJ’S WHOLESALE CLUB HOLDINGS, INC.

Date: August 26, 2021	By:	/s/ Laura L. Felice
		Laura L. Felice
		Executive Vice President, Chief Financial Officer (Principal Financial Officer and Authorized Signatory)


Exhibit Number			Exhibit Description
10.1#			Employment Agreement between Robert W. Eddy and BJ’s Wholesale Club, Inc., dated as of May 10, 2021 (previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on May 14, 2021 and incorporated herein by reference).
10.2#			Employment Agreement between Laura Felice and BJ’s Wholesale Club, Inc., dated as of May 10, 2021 (previously filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on May 14, 2021 and incorporated herein by reference).
10.3#			Employment Agreement between William Werner and BJ’s Wholesale Club, Inc., dated as of May 10, 2021 (previously filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on May 14, 2021 and incorporated herein by reference).
10.4#			Employment Agreement between Christopher J. Baldwin, BJ’s Wholesale Club, Inc. and the Company (f/k/a Beacon Holding Inc.), dated as of September 1, 2015 (previously filed as Exhibit 10.4 to the Company’s Registration Statement on Form S-1 (File No. 333-229593) filed on February 11, 2019 and incorporated herein by reference).
10.5#			Amendment No. 1 to Employment Agreement between Christopher J. Baldwin, BJ’s Wholesale Club, Inc. and the Company (f/k/a Beacon Holding Inc.), dated as of February 1, 2016 (previously filed as Exhibit 10.4(a) to the Company’s Registration Statement on Form S-1 (File No. 333-229593) filed on February 11, 2019 and incorporated herein by reference).
10.6#			Amendment No. 2 to Employment Agreement between Christopher J. Baldwin, BJ’s Wholesale Club, Inc. and the Company (f/k/a Beacon Holding Inc.), dated as of January 30, 2020 (previously filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on February 4, 2020 and incorporated herein by reference).
31.1			Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
31.2			Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
32.1			Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
32.2			Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
101.INS			Inline XBRL Instance Document (filed herewith)
101.SCH			Inline XBRL Taxonomy Extension Schema Document (filed herewith)
101.CAL			Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith)
101.DEF			Inline XBRL Taxonomy Extension Definition Linkbase Document (filed herewith)
101.LAB			Inline XBRL Taxonomy Extension Label Linkbase Document (filed herewith)
101.PRE			Inline XBRL Taxonomy Extension Linkbase Document (filed herewith)
104			Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*) (filed herewith)