BJ’s Wholesale Club (NYSE:BJ) reported stronger-than-expected first-quarter earnings on Thursday, but a revenue miss and unchanged full-year outlook led shares to dip 2% intra-day today.

The company posted adjusted EPS of $1.14 for the quarter, well ahead of the $0.91 analyst consensus. However, revenue came in at $5.03 billion, falling short of expectations of $5.19 billion.

Comparable club sales rose 1.6% year-over-year, and 3.9% excluding fuel—a sign of continued strength in core merchandise performance. Membership fee income also grew a healthy 8.1% to $120.4 million, reflecting ongoing loyalty and expansion of the customer base.

BJ’s reaffirmed its fiscal 2025 guidance for adjusted EPS of $4.10 to $4.30, in line with the $4.24 consensus, signaling confidence in its operating strategy despite soft top-line performance this quarter.

While the earnings beat highlights strong margin and membership trends, the revenue shortfall and lack of upward revisions to guidance left investors on the sidelines.