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BJ’s Wholesale Club Investor Presentation May 2025
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2 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 statements, including, without limitation, statements regarding our future results of operations and financial position; our anticipated fiscal 2025 outlook; our membership fee increases; the timing and amounts of any share repurchases under our current authorized share repurchase program; and our strategic priorities and future progress, as well as statements that include the words “expect,” “intend,” “plan,” “confident,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: uncertainties in the financial markets, including, without limitation, as a result of disruptions and instability in the banking and financial services industries or as a result of wars and global political conflicts, consumer and small business spending patterns and debt levels; our dependence on having a large and loyal membership; domestic and international economic conditions, including volatility in inflation or interest rates, supply chain disruptions, construction delays and exchange rates; our ability to procure the merchandise we sell at the best possible prices; the effects of competition and regulation; our dependence on vendors to supply us with quality merchandise at the right time and at the right price; breaches of security or privacy of member or business information; conditions affecting the acquisition, development, ownership or use of real estate; our capital spending; actions of vendors; our ability to attract and retain a qualified management team and other team members; costs associated with employees (generally including health care costs), energy and certain commodities, geopolitical conditions (including tariffs); changes in our product mix or in our revenues from gasoline sales; our failure to successfully maintain a relevant digital experience for our members; risks related to our growth strategy to open new clubs; risks related to our e-commerce business; our ability to grow our BJ’s One Mastercard® program; and other important factors discussed under the caption “Risk Factors” in our Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 14, 2025, and subsequent filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this presentation. Any such forward-looking statements represent management’s estimates as of the date of this presentation. While we may elect to update such forward-looking statements at some point in the future, unless required by law, we disclaim any obligation to do so, even if subsequent events cause our views to change. Thus, one should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this presentation. Industry Information: Market data and industry information used throughout this presentation are based on management’s knowledge of the industry and the good faith estimates of management. We also relied, to the extent available, upon management’s review of independent industry surveys and publications and other publicly available information prepared by a number of third-party sources. Although we believe that these sources are reliable, we cannot guarantee the accuracy or completeness of this information, and we have not independently verified this information. All of the market data and industry information used in this presentation involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. While we believe the estimated market position, market opportunity and market size information included in this presentation are generally reliable, such information, which is derived in part from management’s estimates and beliefs, is inherently uncertain and imprecise. Projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described above. These and other factors could cause results to differ materially from those expressed in our estimates and beliefs and in the estimates prepared by independent parties. Non-GAAP Financial Measures: We present adjusted EBITDA, adjusted EPS, adjusted free cash flow, and net debt to LTM adjusted EBITDA to help us describe our operating performance. Our presentation of these measures is intended as a supplemental measure of our performance that is not required by, or presented in accordance with, U.S. generally accepted accounting principles (“GAAP”). Adjusted EBITDA, adjusted free cash flow, and adjusted EBITDA margin should not be considered as an alternative to operating income (loss), net income (loss), earnings per share or any other performance measures derived in accordance with U.S. GAAP as measures of operating performance or operating cash flows or as measures of liquidity. Our presentation of adjusted EBITDA, adjusted free cash flow, and adjusted EBITDA margin should not be construed to imply that our future results will be unaffected by these items. A reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures are included in the Appendix to this presentation.
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3 7.5M+ Members $120.4 M MFI1 +8.1% vs. Q1 FY24 90% Tenured renewal rate2 41% Higher-tier penetration Growing the size and quality of membership to record levels +35% Digitally-enabled comparable sales growth 90%+ Digital sales fulfilled in-club 26% Own brand penetration2 Focus on value resonating with members, demonstrated by growth in traffic, units sold and market share Our strategic priorities power a stronger future 1 Membership fee income 2 As of FY24. Stats reported annually 3 Refer to Appendix section for a reconciliation of non-GAAP financial measures 4 As of May 3, 2025 Opened 5 new clubs and 4 new gas stations in Q1 FY25 Q1 FY25 results $5.0B Net sales +4.7% vs. Q1 FY24 +3.9% Comparable club sales ex. the impact of gasoline vs. Q1 FY24 $1.14 Adjusted EPS3 +34.1% vs. Q1 FY24 $285.8M Adjusted EBITDA3 +20.9% vs. Q1 FY24 $67.6M Adjusted free cash flow3 •Capital allocation priority remains investing in the business •Net debt to LTM adjusted EBITDA3 of 0.4x •Returned $166.9M to shareholders via share repurchases (LTM Q1 FY25) Strong balance sheet and free cash flow provide strategic flexibility Improve member loyalty Unbeatable member experience Deliver value conveniently Grow our footprint +30bps Merchandise gross margin rate vs. Q1 FY24 Q1 FY25: Strong execution, membership and traffic Acceleration in new club openings At Q1E FY25, the company operated 255 clubs and 190 gas stations4
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4 Key investment highlights Advantaged business model in a favorable market backdrop Loyal membership base that is growing in size and quality Differentiated shopping experience focused on fresh, value and convenience Accelerated expansion of highly profitable club base Prudent capital allocation strategy maximizes shareholder value
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5 The warehouse club model offers significant structural advantages •90% tenured renewal rate •Membership fee drives spend consolidation and strong annuity •Provides comprehensive data on members Earn member loyalty, stability and data •Limited SKUs support pallet presentation, driving scale and inventory turns •Requires less labor in club •Efficient distribution •Lower per square foot build-out costs Operate efficiently •~25% better prices than grocery1 •~10x return on annual membership fee •Compelling promotions and awards •Fuel and services (tires, optical, etc.) Constantly reinvest into value 1 25% savings based on a representative basket of manufacturer-branded groceries compared to traditional supermarket competitors. For additional information, refer to our Form 10-K filed with the SEC on March 14, 2025
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6 BJ’s and the broader warehouse club channel is growing and taking share Total addressable market in U.S. $298B U.S. warehouse clubs U.S. total retail (ex. auto) ~$5.9T $20B 2 1 $108 $113 $113 $121 $132 $141 $147 $151 $152 $155 $165 $176 $183 $204 $236 $269 $278 $298 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ($ in B) U.S. warehouse club market size ‘07-24 CAGR 3.7% ‘07-24 CAGR 6.2% 9% 7% 5% 4% Total retail (ex. auto) Grocery GAFO BJ’s has outperformed, driving share gains 3 1 U.S. sales growth by channel (2019 – 2024 CAGR) Source: HHC Publishing – 2024 Warehouse Club Focus; U.S. Census Bureau data (seasonally adjusted) 1 Excludes auto and other motor vehicles 2 BJ’s FY24 net sales 3 GAFO represents stores that specialize in merchandise including furniture & home furnishings, electronics & appliances, computers, clothing & accessories, sporting goods, hobby, book, music, general merchandise, and office supplies
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7 MFI has grown every year for over 25 years ($ in M) $56 $66 $79 $90 $106 $118 $124 $139 $150 $159 $173 $175 $180 $191 $210 $229 $242 $243 $247 $255 $259 $283 $302 $333 $361 $397 $421 $457 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Renewal rate1 Club count 81% 81% 83% 84% 82% 83% 84% 83% 83% 82% 82% 83% 83% 83% 82% 84% 83% 83% 84% 85% 86% 87% 87% 88% 89% 90% 90% 90% 84 96 107 118 130 140 150 157 165 172 177 180 187 189 195 198 201 207 213 214 215 216 217 221 226 235 243 250 1 Represents tenured renewal rate which is reported annually Note: Club counts as of fiscal year end MEMBERSHIP FEE INCREASE MEMBERSHIP FEE INCREASE MEMBERSHIP FEE INCREASE MEMBERSHIP FEE INCREASE MEMBERSHIP FEE INCREASE
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8 BJ’s go-to-market strategy is differentiated vs. Mass channel Price below mass channel break-even Larger pack sizes vs. Club Broader assortment Smaller pack sizes Smaller club format Convenient locations Full-service deli vs. Grocery ~25% lower prices Treasure hunt Services & fuel 1 25% savings based on a representative basket of manufacturer-branded groceries compared to traditional supermarket competitors. For additional information, refer to our Form 10-K filed with the SEC on March 14, 2025 1
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91 Estimate of average annual member savings. Assumes Every Day Low Price (“EDLP”) savings versus traditional grocery We strive to deliver a great member experience grounded in value How members save at BJ’s Illustrative member savings1 Lower prices Fresh food and deli assortment can fulfill weekly grocery shopping needs Quality own brand products Digital app allows for convenient shopping and coupon usage Low-priced fuel and services Attractive credit card rewards ~10x Return on membership fee EDLP savings Coupons Gas savings Higher-tier membership rewards
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10 Our goal is to deliver convenience to our members 1 Buy online, pick up in club 2 All other digital offering e.g. services 1 Digitally-enabled sales BOPIC1 / Curbside pickup Same-day delivery Ship-to-home, Express Pay, other2 2 In-club conveniences Price scan In-club coupons Deli pre-ordering 3 Targeted messaging and retail media program Product location
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11 Our digital offerings have contributed meaningfully to our growth 1 Members shopping online or in-club using digital conveniences through web or app properties in FY24 2 Compared to members who only shop in-club 3 As a % of merchandise sales Q1 FY25 digitally-enabled comp sales grew 56% on a 2-yr stack 2% 13% FY18 FY24 Digital penetration %3 Digitally engaged members are ~2x more valuable driven by greater trips, spend and renewal 1 2
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12 1 As of May 3, 2025 2 Refers to core New England markets: CT, MA, ME, NH, RI and VT; Compares to Costco and Sam’s Club count as of latest published annual reports We have an industry leading footprint on the east coast and are expanding 255 Clubs1 190 Gas stations1 21 States1 We have an advantaged real estate position built over 40+ years… Leading positions in core Eastern U.S. markets ~3x clubs vs. next largest competitor in New England2 Entered 21st state (Louisville, KY) in early 2025 BJ’s club location Distribution center Club Support Center Orlando, FL Perishable DC Jacksonville, FL Dry DC Elkton, MD Perishable DC Independence, KY Perishable DC Burlington, NJ Dry DC Uxbridge, MA Dry DC Rocky Hill, CT Perishable DC Commercial Point, OH Dry DC (2027)
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13 Club count growth 1 1 1 1 4 5 9 8 7 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 …and have accelerated our growth in recent years Recent openings prove our model works Strongest pipeline in company’s history New ambient DC in Commercial Point, OH to support growth (estimated 2027 opening) Expect 25–30 clubs over next two fiscal years 25-30 over next two fiscal years
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14 We have delivered significant growth since 2018 1 Refer to Appendix section for a reconciliation of non-GAAP financial measures FY24 vs. FY18 +58% Net sales +61% MFI +92% Adjusted EBITDA $2.7B Cumulative adjusted free cash flow 0.5x Net debt to adjusted EBITDA $816M Cumulative share repurchases +205% Adjusted EPS 90% Tenured renewal rate 1 1 1 1
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15 1 Excluding the impact of gasoline sales 15 Our long-term financial targets reflect continued momentum Comparable club sales LSD% – MSD% growth EPS HSD% – LDD% growth Total revenues MSD% growth 1
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16 We are maximizing shareholder value through disciplined capital allocation 1 Transaction closed on May 2, 2022. Acquisition included related private transportation fleet 2 Includes 2.5 million shares repurchased by the company in connection with the secondary offering of shares of the company’s common stock by certain selling shareholders completed on June 27, 2019 Reduced debt by $2B+ since FY17 $137 $146 $197 $218 $324 $371 $455 $588 $140 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25 Capital expenditures ($ in M) Capex ramping as new club openings accelerate $820M+ of shares buybacks since FY182 ($ in M) $64 $100 $179 $152 $130 $191 $6 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25 $2,753 $1,819 $1,693 $1,112 $752 $855 $719 $575 $550 5.1x 3.1x 3.0x 1.3x 0.8x 0.8x 0.6x 0.5x 0.4x FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 LTM Q1 FY25 Principal debt ($ in M) Net debt / Adj. EBITDA Highest capital return priority remains investing in the business to support strategic growth priorities including footprint expansion FY22: Brought end-to-end perishable distribution network in-house via acquisition of four distribution centers1 January 2025: Announced plans to build fourth ambient distribution center (2027 opening) De-levered balance sheet since 2018 initial public offering The company remains focused on maintaining balance sheet strength to maximize strategic flexibility Share repurchase remains the preferred method of returning cash to shareholders Fully utilized company’s four-year $500M share repurchase program which expired in January 2025 New $1B share repurchase program expiring January 2029 Reinvest for long-term growth Maintain strong balance sheet Return cash to shareholders
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Appendix
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18 GAAP to non-GAAP reconciliations Adjusted EBITDA Numbers may not foot due to rounding Note: As of FY23, the company amended its adjusted EBITDA definition to exclude preopening expense and non-cash rent expense. All prior year periods have been recast to conform to the current period definition (in M) FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 YTD Q1 FY24 YTD Q1 FY25 LTM Q1 FY25 Net income $ 52 $ 127 $ 188 $ 421 $ 427 $ 514 $ 524 $ 534 $ 111 $ 150 $ 573 Interest expense, net 197 165 108 84 59 47 65 51 14 11 49 Provision (benefit) for income taxes (28) 12 56 137 131 176 212 186 36 43 193 Depreciation and amortization 164 162 157 167 181 201 228 262 63 70 268 Compensatory payments related to options 78 - - - - - - - - - - Stock-based compensation expense 9 59 19 32 54 43 39 48 9 11 50 Management fees 8 3 - - - - - - - - - Strategic consulting 30 33 11 - - - - - - - - Restructuring and other 9 1 4 - 2 - 14 8 3 2 7 Offering costs - 4 2 - - - - - - - - Club closing costs and impairment charges - - 15 - - - - - - - - Acquisition and integration costs - - - - 4 12 - - - - - Other adjustments 6 1 (3) 1 1 15 1 - 0.3 0.3 0 Adjusted EBITDA $ 525 $ 567 $ 558 $ 842 $ 859 $ 1,009 $ 1,082 $ 1,091 $ 236 $ 286 $ 1,140
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19 GAAP to non-GAAP reconciliations Net debt to LTM adjusted EBITDA Numbers may not foot due to rounding Note: As of FY23, the company amended its adjusted EBITDA definition to exclude preopening expense and non-cash rent expense. All prior year periods have been recast to conform to the current period definition (in M) FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 5/3/2025 Total debt $ 2,712 $ 1,801 $ 1,681 $ 1,106 $ 749 $ 853 $ 717 $ 574 $ 549 Less: Cash and cash equivalents 35 27 30 44 45 34 36 28 39 Net debt $ 2,677 $ 1,774 $ 1,650 $ 1,063 $ 703 $ 819 $ 681 $ 546 $ 509 LTM adjusted EBITDA $ 525 $ 567 $ 558 $ 842 $ 859 $ 1,009 $ 1,082 $ 1,091 $ 1,140 Net debt to LTM adjusted EBITDA 5.1x 3.1x 3.0x 1.3x 0.8x 0.8x 0.6x 0.5x 0.4x
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20 GAAP to non-GAAP reconciliations Adjusted EPS Numbers may not foot due to rounding (in M, except per share data) FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY24 Q1 FY25 Net income as reported $ 127 $ 187 $ 421 $ 427 $ 513 $ 524 $ 534 $ 111 $ 150 Adjustments: Offering costs 4 2 - - - - - - - Stock-based compensation related IPO 49 - - - - - - - - Management fees 3 - - - - - - - - Stock-based compensation related to acceleration of stock awards - - - 17 - - - - - Acquisition and integration costs - - - 4 12 - - - - Home office transition costs - - - 1 15 - - - - (Gain) loss on termination and impairment on discontinued operations club lease 4 15 - - 1 - - - - (Gain) loss on cash flow hedge - - 7 6 (0) - - - - (Gain) loss on sale leaseback transactions - (3) - - - - - - - Charges and write-offs related to debt 25 4 4 1 3 2 1 - - Restructuring and other 4 4 - 2 - 13 8 3 2 Tax impact of adjustments to net income (31) (6) (3) (9) (9) (4) (3) (1) (0) Adjusted net income $ 186 $ 203 $ 429 $ 449 $ 535 $ 535 $ 541 $ 113 $ 151 Weighted-average diluted shares outstanding 140 139 139 138 136 135 134 134 133 EPS $ 1.05 $ 1.35 $ 3.03 $ 3.09 $ 3.76 $ 3.88 $ 4.00 $ 0.83 $ 1.13 Adjusted EPS $ 1.33 $ 1.46 $ 3.09 $ 3.25 $ 3.92 $ 3.96 $ 4.05 $ 0.85 $ 1.14
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21 GAAP to non-GAAP reconciliations Adjusted free cash flow Numbers may not foot due to rounding (in M) FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25 Net cash provided by operating activities $ 427 $ 355 $ 869 $ 832 $ 788 $ 719 $ 901 $ 208 Less: Additions to property & equipment, net of disposals 146 197 218 324 398 467 588 140 Plus: Proceeds from sale leaseback transactions - 22 26 19 27 12 - - Adjusted free cash flow $ 281 $ 180 $ 676 $ 527 $ 418 $ 264 $ 313 $ 68