[Management View]
Net sales reached $5 billion, up 4.7% YoY. Operating income grew by 27% and net income by 35%. Key strategic priorities include improving member loyalty, enhancing the shopping experience, delivering value, and expanding the footprint.

[Outlook]
BJ's maintained its full-year guidance of 2%-3.5% comp sales growth excluding gas and $4.10-$4.30 adjusted EPS. The company plans to open 25-30 new clubs over the next two years and continues to invest in Fresh 2.0 initiatives.

[Financial Performance]
Net sales increased by 4.7% YoY to $5 billion. Comparable club sales excluding gas grew by 3.9%, driven by traffic and unit growth. Digitally enabled comp sales grew 35% YoY. Membership fee income rose 8.1% to $120.4 million.

[Q&A Highlights]
Question 1: Can you update us on the real estate strategy and target markets for new club openings?
Answer: BJ's has been aggressive in expanding its real estate portfolio, opening new clubs in both existing and new markets. The success of recent openings has given confidence to continue this expansion, with a pipeline as large as ever.

Question 2: How should we think about the longer-term algorithm given the strength in membership?
Answer: The company is pleased with membership growth and is focused on engaging and upgrading members. While the economic algorithm remains unchanged, there is potential for adjustments based on future engagement and activation of members.

Question 3: Can you provide more color on margin investments and the expected comp cadence for the year?
Answer: Value remains the North Star, and the company will continue to invest in pricing and Fresh 2.0 initiatives. The first half of the year is expected to be stronger than the second half, with no significant changes in margin investments anticipated.

Question 4: What kind of lift are you seeing in meat and seafood from Fresh 2.0, and how does it compare to produce?
Answer: Produce and meat are comparable in size, and the company expects similar results in meat as seen in produce. The initiative aims to drive member engagement and trip frequency.

Question 5: How did the first quarter performance compare to internal expectations, and what are the current sales trends?
Answer: The first quarter exceeded internal expectations, and the company is pleased with the 3.9% comp growth. Current sales trends are not disclosed, but the momentum from Q1 is expected to continue.

Question 6: How are tariffs impacting the business, and what measures are being taken to mitigate their effects?
Answer: BJ's imports less than competitors, but tariffs are still a concern. The company is employing various tactics, including resourcing items and working with suppliers, to mitigate the impact. The guidance includes a range of scenarios to account for tariff uncertainties.

Question 7: How is the company performing in non-food categories, and what is the outlook for higher-tier membership penetration?
Answer: BJ's is gaining share in both food and non-food categories, with strong performance in electronics and apparel. The goal for higher-tier membership penetration is over 50%, with current penetration at around 41%.

Question 8: What is the impact of digital conveniences on margins, and what is the outlook for general merchandise and private label?
Answer: Digital conveniences increase costs but also drive member engagement and lifetime value. General merchandise is expected to remain soft due to economic uncertainty, while private label penetration continues to reach new records.

Question 9: How should we think about merchandise margins for the rest of the year?
Answer: The company expects margins to perform well, with various initiatives in place to drive growth. However, investments will continue to be made to gain market share and support members.

Question 10: Are there opportunities for store relocations, and how do they fit into the overall real estate strategy?
Answer: BJ's is actively looking for relocation opportunities to better serve members and adapt to changing market conditions. These relocations are part of the broader real estate strategy and will be pursued when they make sense.

[Sentiment Analysis]
Analysts were positive about the company's strategic initiatives and membership growth. Management maintained a confident tone, emphasizing long-term investments and adaptability in a dynamic environment.

[Quarterly Comparison]
| Metric | Q1 FY2025 | Q1 FY2024 |
|-------------------------------|-----------|-----------|
| Net Sales | $5 billion| $4.78 billion|
| Operating Income Growth | 27% | 20% |
| Net Income Growth | 35% | 25% |
| Comparable Club Sales Growth | 3.9% | 3.5% |
| Digitally Enabled Comp Sales | 35% | 30% |
| Membership Fee Income | $120.4 million | $111.4 million |

[Risks and Concerns]
- Tariff uncertainties and their impact on costs and pricing.
- Economic uncertainty affecting consumer spending and discretionary categories.
- Potential challenges in maintaining margin growth while investing in strategic initiatives.

[Final Takeaway]
BJ's Wholesale Club Holdings, Inc. reported strong Q1 FY2025 results, driven by robust membership growth and strategic investments in Fresh 2.0 and digital conveniences. The company remains confident in its long-term growth prospects, despite economic uncertainties and tariff challenges. Management's focus on delivering value and expanding the footprint positions BJ's well for sustainable growth.