Reasons for the Decline of BJ’s Wholesale Club Holdings (BJ) in Q2

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter investor letter. A copy of the same can be downloaded here. In the second quarter, the strategy underperformed the Russell 2000 Growth Index and returned 2.50% (net), and the index return was 7.05%. Consumer Staples, Health Care, Industrials, and Information Technology showed relative weakness. However, Communication Services and Materials showed strength, partially offsetting the weakness. In addition, please check the fund’s top five holdings to know its best picks in 2023.

TimesSquare U.S. Small Cap Growth Strategy highlighted stocks like BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) in the second quarter 2023 investor letter. Headquartered in Westborough, Massachusetts, BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) operates warehouse clubs. On September 21, 2023, BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) stock closed at $72.22 per share. One-month return of BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) was 11.52%, and its shares lost 1.22% of their value over the last 52 weeks. BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) has a market capitalization of $9.658 billion.

TimesSquare U.S. Small Cap Growth Strategy made the following comment about BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) in its Q2 2023 investor letter:

“Within Consumer Staples, BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) operates warehouse clubs focused on smaller package sizes for customers that tend to live in cities or smaller homes. Profits and earnings surpassed estimates for the first quarter. Grocery and consumables remained strong, however, general merchandise sales declined. While management reiterated full year guidance, the second quarter is thus far looking weaker than expected. The combination of these factors caused a -17% markdown in its shares.”

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BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) at the end of second quarter which was 35 in the previous quarter.

We discussed BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) in another article and shared Artisan Global Discovery Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.