BJ's Wholesale Club Holdings, Inc.

Thank you all for your patience. The conference call titled EJ's Fourth Quarter Fiscal 2025 Earnings Call will begin shortly. During the presentation, you will have the opportunity to ask a question by pressing star, followed by the number one on your telephone keypads. Again, please stand by and we will begin in a few minutes. Bye. Thank you. Thank you. Hello everyone and welcome to the BJ's fourth quarter fiscal 2025 earnings call. My name is James and I'll be your operator for today. If you would like to ask a question during the presentation, you may do so by pressing star followed by the number one on your telephone keypads. The conference call will now start and I'll hand it over to Diana Rashkow. Please go ahead.

Good morning and welcome to BJ's fourth quarter fiscal 2025 earnings call. Joining me today are Bob Eddy, Chairman and Chief Executive Officer, Laura Felice, Chief Financial Officer, and Bill Werner, Executive Vice President, Strategy and Development. Please remember that we may make forward-looking statements on this call that are based on our current expectations. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from what we say on this call. please see the risk factors section of our most recent SEC filings for a description of these risks and uncertainties. Please also refer to today's press release and latest investor presentation posted on our investor website for our cautionary statement regarding forward-looking statements and non-GAAP reconciliations. And now I'll turn the call over to Bob.

Good morning and thank you all for joining us. We're pleased to share that we closed out fiscal 2025 of strong momentum, delivering solid comparable club sales growth and strong profitability. Throughout the year, we navigated a dynamic environment marked by a more cautious value-seeking consumer, tariff-related and geopolitical uncertainties, and broader macroeconomic volatility. Even with these challenges, our team remained focused and resilient, consistently delivering value, convenience, and quality for our members. We also achieved several meaningful milestones in 2025 that strengthened our business and reinforced the momentum we are carrying into the year ahead. We grew our membership base by more than 500,000 members, the largest annual increase in recent years, underscoring the relevance of our value proposition and the loyalty of the families who rely on us. We successfully opened 14 new clubs, the most we've ever opened in a single year, expanding our reach into new markets with sales, membership, and profit performance all well above expectations. We also advanced our digital capabilities with digitally enabled sales penetration reaching 16% as more members embraced the convenience of omnichannel services. All of these are material accomplishments that create a structurally higher lifetime value for both members and shareholders. And ultimately, these achievements helped drive record full-year earnings per share, reflecting the strength of our model and disciplined execution across the business. As always, our team demonstrated an incredible commitment to our purpose, to take care of the families that depend on us. This purpose guided our decision-making and enabled us to deliver the dependable experience our members count on, no matter the conditions. That was especially evident late in the quarter when winter storm Fern, one of the largest storms in recent years, brought significant snow and ice across much of the US, impacting nearly our entire club footprint. We pride ourselves on being open and in stock for our members when they need us most. In the days leading up to the storm, we set a daily record for gas volume that was 20% higher than our previous daily record. reinforcing that we are a destination in times like these. Our team works tirelessly to keep our clubs open and ensure that our members had access to the essential supplies they needed from groceries and household goods to ice melt and emergency items. Their remarkable efforts really showed our purpose of taking care of the families that depend on us. And I'm incredibly proud of the way that they showed up for our members and communities. Turning to our fourth quarter sales performance, We delivered merchandise comparable club sales growth of 2.6%, reflecting our 13th consecutive quarter of market share gains and 16th consecutive quarter of traffic growth. Our perishables, grocery, and sundries division grew comps by 2.3%, driven by solid unit growth supported by improvements in assortment and merchandising. Even after lapping the chain-wide rollout of Fresh 2.0, we're still seeing strong, steady comp performance in perishables, clear proof that this isn't a one-time lift, but a real lasting shift in how our members shop with us. These results reinforce the importance of our core consumables franchise, which continues to demonstrate consistency, even in a volatile operating environment. In general merchandise and services, comps increased by 4.3%, which outperformed our expectations for the quarter, driven by changes in merchandise mix. While we are pleased with our progress, it's important to note that general merchandise can be variable quarter to quarter, given the discretionary nature of many of these categories. As such, we would not expect performance at this level every quarter, but we are encouraged by the traction we're seeing as our broader transformation efforts take hold. Turning to membership, the foundation of our business and one of our greatest strengths. We ended the year with over 8 million members, a new high for our company. In comp clubs, this growth reflects strong acquisition, continued loyalty from our long-tenured members, and the ongoing relevance of our value proposition. Our growth was also the result of opening our 14 new clubs this year, growing both the comp and total member bases is incredibly important to our future success. For the fourth consecutive year, we achieved a 90% tenured renewal rate. This level of loyalty is rare in retail and speaks directly to the consistency of the experience we deliver and the relevance of the BJ's membership model. We also saw continued strength in our higher tier memberships. Penetration increased to 42% this year, demonstrating strong adoption of the enhanced benefits in our higher tier offerings. These members are among our most engaged and the highest spending cohorts, and we see meaningful opportunity for continued growth here. What stands out this year is not just the growth of membership, but the quality of that growth. The combination of more members, exceptionally high renewal rates, and deeper engagement among our most loyal tiers reinforces the health of our model. It also gives us tremendous confidence as we look ahead because strong membership is the engine that powers everything else, traffic, share gains, and long-term profitable growth. As our membership base grows in both size and quality, we continue to make it easier for members to shop with us whenever and however they choose. Digital engagement remains a major unlock for convenience, and this quarter, digitally enabled sales grew by 31%, driven by strong adoption of BOPIC, same-day delivery, and express pay. These services have consistently been among the most meaningful drivers of digital growth, with more than 90% of digital orders fulfilled directly from our clubs, an efficient and member-friendly model that has contributed significantly to our momentum. Our digital business also achieved a milestone this quarter, posting its highest sales day ever on Black Friday and then surpassing that record again on Cyber Monday. This performance reflects not only high engagement, but the continued maturation of our digital portfolio. We're increasingly seeing members tap into our digital conveniences for different shopping occasions, underscoring how ingrained these capabilities have become. For example, a member stocking up in club ahead of a winter storm may be more inclined to use Express Pay to make that shopping trip faster and easier. We're also continuing to lean into AI to create even more seamless and intuitive experiences for our members. Our AI shopping assistant, Ask Bev, is designed to enhance the member experience through more personalized, intuitive, and efficient product discovery and support. And behind the scenes, AI is enhancing our merchandising enrichment and platform reliability. Value remains foundational to how we serve our members. And we continue to see that resonate across all income levels, particularly in a period where many consumers are becoming more selective with their spending. A strong pricing position is central to our model. Our advantage structure allows us to consistently deliver meaningful savings up to 25% better than traditional grocery, and we are relentless about maintaining that edge for members. This commitment to value is one of the reasons we continue to see steady renewal rates, strong traffic, and healthy unit growth in our core businesses. Our own brands are another important way we help members manage their budgets without compromising on quality. In fiscal 2025, own brands represented 27% of our merchandise sales, and we remain on track toward our long-term goal of 30%. These products offer significant savings and are an increasingly important part of how families shop our clubs. That loyalty combined with higher margins makes this effort powerful for our company. We also create value through compelling discounts and promotions. A recent example is our big game event where members who spent over $150 got a $15 digital bounce back coupon, providing members with a high impact way to save during a key seasonal moment. At a time when members are making careful decisions with every dollar, our focus on great prices, quality products, and highly curated assortments ensures we remain a trusted destination for families looking to get more value out of every trip. We continue to make meaningful progress on expanding our footprint and bringing the BJ's model to more communities. In the fourth quarter, we opened seven new clubs, a great finish to a year that saw us open 14 new clubs. We are so proud of our 2025 class of club openings, which saw us open clubs in eight different states. These clubs as a whole are delivering sales, membership and profit that are well above expectations. And we're very excited for our continued accelerated club growth. The success in our new clubs and new markets is a testament to the team working on new clubs, whose mission is to make the next opening even better than the last. The team is ready for our first half of the year openings in the Dallas-Fort Worth area, and I have tremendous amount of confidence that we will deliver for these new members and communities as we have proven time and again in our new club programs. We remain on track to deliver our commitment of 25 to 30 new clubs over 2025 and 2026. And as we look out at the new club pipeline, we would expect this pace of openings to continue over coming years. Our sustained expansion reflects our confidence in the relevance of our model, our ability to serve more members across more geographies, and our long-term commitment to profitable growth. Before I hand things over, I want to take a moment to recognize our team members across our clubs, our supply chain, and our club support center. Their commitment to taking care of the families who depend on us is what enables our performance quarter after quarter. Their hard work, especially in dynamic environments like this one, continues to inspire me every day. As we look ahead, we remain confident in the strength of our model and our ability to execute on our long-term priorities. Our business is built to win in both stable and uncertain environments and the investments we're making today put us in a strong position to continue delivering value for our members and sustainable growth for our shareholders. With that, I'll now turn it over to Laura to walk you through the financial results in more detail.