Q1 Earnings Highs And Lows: BJ's (NYSE:BJ) Vs The Rest Of The Large-format Grocery & General Merchandise Retailer Stocks

As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at large-format grocery & general merchandise retailer stocks, starting with BJ's (NYSE:BJ).

Big-box retailers operate large stores that sell groceries and general merchandise at highly competitive prices. Because of their scale and resulting purchasing power, these big-box retailers–with annual sales in the tens to hundreds of billions of dollars–are able to get attractive volume discounts and sell at often the lowest prices. While e-commerce is a threat, these retailers have been able to weather the storm by either providing a unique in-store shopping experience or by reinvesting their hefty profits into omnichannel investments.

The 4 large-format grocery & general merchandise retailer stocks we track reported a decent Q1; on average, revenues were in line with analyst consensus estimates. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and large-format grocery & general merchandise retailer stocks have held roughly steady amidst all this, with share prices up 3.9% on average since the previous earnings results.

BJ's (NYSE:BJ)

Appealing to the budget-conscious individual shopping for a household, BJ’s Wholesale Club (NYSE:BJ) is a membership-only retail chain that sells groceries, appliances, electronics, and household items, often in bulk quantities.

BJ's reported revenues of $4.92 billion, up 4.1% year on year, in line with analysts' expectations. It was a slower quarter for the company, with a miss of analysts' gross margin estimates. Adjusted EBITDA also missed by a slight margin.

“During the first quarter, we delivered strong increases in membership, traffic and unit volumes. This resulted in revenue growth and market share gains in our clubs and at our gas stations. Our merchandising improvements and digital conveniences, grounded in delivering compelling value, are resonating with our members. We are also growing our footprint and remain on track for 12 new club openings this year,” said Bob Eddy, Chairman and Chief Executive Officer, BJ’s Wholesale Club.

The stock is up 10.1% since the results and currently trades at $88.65.

Read our full report on BJ's here, it's free.

Best Q1: Walmart (NYSE:WMT)

Known for its large-format Supercenters, Walmart (NYSE:WMT) is a retail pioneer that serves a budget-conscious consumer who is looking for a wide range of products under one roof.

Walmart reported revenues of $161.5 billion, up 6% year on year, outperforming analysts' expectations by 2.1%. It was a very strong quarter for the company: Walmart's revenue outperformed Wall Street's estimates on slightly higher-than-expected same-store sales growth. Gross margin also came in better, leading to an EPS beat. The company effectively raised its full year guidance, saying that it now expects to come in at the high end of the previously-provided sales and EPS guidance ranges.

Walmart pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 9.2% since the results and currently trades at $65.33.

Is now the time to buy Walmart? Access our full analysis of the earnings results here, it's free.

Target (NYSE:TGT)

With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE:TGT) serves the suburban consumer who is looking for a wide range of products under one roof.

Target reported revenues of $24.53 billion, down 3.1% year on year, inline with analysts' expectations. It was a mixed quarter for the company, with an impressive beat of analysts' gross margin estimates but underwhelming earnings guidance for the full year.

Target had the slowest revenue growth in the group. The stock is down 6.8% since the results and currently trades at $145.2.

Read our full analysis of Target's results here.

Costco (NASDAQ:COST)

Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ:COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.

Costco reported revenues of $58.44 billion, up 5.7% year on year, falling short of analysts' expectations by 1.2%. It was a solid quarter for the company, with an impressive beat of analysts' gross margin estimates and a narrow beat of analysts' earnings estimates .

Costco had the weakest performance against analyst estimates among its peers. The stock is up 3.2% since the results and currently trades at $810.5.

Read our full, actionable report on Costco here, it's free.

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