# EDGAR Filing Document

**Accession Number:** 0001531152
**File Stem:** 0001531152-26-000030
**Filing Date:** 2026-5
**Character Count:** 230558
**Document Hash:** 76e2ab2a9b9373084c73903ff9b6f791
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001531152-26-000030.hdr.sgml**: 20260528

**ACCESSION NUMBER**: 0001531152-26-000030

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 61

**CONFORMED PERIOD OF REPORT**: 20260502

**FILED AS OF DATE**: 20260528

**DATE AS OF CHANGE**: 20260528

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BJ's Wholesale Club Holdings, Inc.
- **CENTRAL INDEX KEY:** 0001531152
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-VARIETY STORES [5331]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 452936287
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0130

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38559
- **FILM NUMBER:** 261035673

**BUSINESS ADDRESS:**
- **STREET 1:** 350 CAMPUS DRIVE
- **CITY:** MARLBOROUGH
- **STATE:** MA
- **ZIP:** 01752
- **BUSINESS PHONE:** 774-512-7400

**MAIL ADDRESS:**
- **STREET 1:** 350 CAMPUS DRIVE
- **CITY:** MARLBOROUGH
- **STATE:** MA
- **ZIP:** 01752

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Beacon Holding Inc.
- **DATE OF NAME CHANGE:** 20110927

?xml version='1.0' encoding='ASCII'? bj-20260502

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

_______________________________

**FORM 10-Q**

_______________________________

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended May 2, 2026** 

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> to** <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

**Commission File Number: 001-38559**

_______________________________

![unitedstatesimage1.jpg](bj-20260502_g1.jpg)

**BJ'S WHOLESALE CLUB HOLDINGS, INC.**

**(Exact name of registrant as specified in its charter)**

_______________________________

---

| | |
|:---|:---|
| **Delaware** | **45-2936287** |
| (State or other jurisdiction of <br>incorporation or organization) | (I.R.S. Employer <br>Identification No.) |
| **350 Campus Drive** | |
| **Marlborough, Massachusetts** | **01752** |
| (Address of principal executive offices) | (Zip Code) |

---

**(774) 512-7400**

**(Registrant's telephone number, including area code)**

**N/A**

**(Former name, former address and former fiscal year, if changed since last report)**

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
| Common Stock, par value $0.01 | BJ | New York Stock Exchange |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | | Emerging growth Company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 21, 2026, the registrant had 127,693,987 shares of common stock, $0.01 par value per share, outstanding.

------

**Table of Contents**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| **[PART I.](#i41e3704435554e12b2c6d315d0504aef_13)** | **<u>[FINANCIAL INFORMATION](#i41e3704435554e12b2c6d315d0504aef_13)</u>** | <u>[4](#i41e3704435554e12b2c6d315d0504aef_13)</u> |
| [Item 1.](#i41e3704435554e12b2c6d315d0504aef_16) | <u>[Financial Statements (Unaudited)](#i41e3704435554e12b2c6d315d0504aef_16)</u> | <u>[4](#i41e3704435554e12b2c6d315d0504aef_19)</u> |
|  | <u>[Condensed Consolidated Balance Sheets](#i41e3704435554e12b2c6d315d0504aef_19)</u> | <u>[4](#i41e3704435554e12b2c6d315d0504aef_19)</u> |
|  | <u>[Condensed Consolidated Statements of Operations and Comprehensive Income](#i41e3704435554e12b2c6d315d0504aef_22)</u> | <u>[5](#i41e3704435554e12b2c6d315d0504aef_22)</u> |
|  | <u>[Condensed Consolidated Statements of Stockholders' Equity](#i41e3704435554e12b2c6d315d0504aef_28)</u> | <u>[6](#i41e3704435554e12b2c6d315d0504aef_28)</u> |
|  | <u>[Condensed Consolidated Statements of Cash Flows](#i41e3704435554e12b2c6d315d0504aef_31)</u> | <u>[7](#i41e3704435554e12b2c6d315d0504aef_31)</u> |
|  | <u>[Notes to Unaudited Condensed Consolidated Financial Statements](#i41e3704435554e12b2c6d315d0504aef_34)</u> | <u>[8](#i41e3704435554e12b2c6d315d0504aef_34)</u> |
| [Item 2.](#i41e3704435554e12b2c6d315d0504aef_94) | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i41e3704435554e12b2c6d315d0504aef_94)</u> | <u>[18](#i41e3704435554e12b2c6d315d0504aef_94)</u> |
| [Item 3.](#i41e3704435554e12b2c6d315d0504aef_133) | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i41e3704435554e12b2c6d315d0504aef_133)</u> | <u>[26](#i41e3704435554e12b2c6d315d0504aef_133)</u> |
| [Item 4.](#i41e3704435554e12b2c6d315d0504aef_136) | <u>[Controls and Procedures](#i41e3704435554e12b2c6d315d0504aef_136)</u> | <u>[27](#i41e3704435554e12b2c6d315d0504aef_136)</u> |
| **[PART II.](#i41e3704435554e12b2c6d315d0504aef_139)** | **<u>[OTHER INFORMATION](#i41e3704435554e12b2c6d315d0504aef_139)</u>** | <u>[27](#i41e3704435554e12b2c6d315d0504aef_139)</u> |
| [Item 1.](#i41e3704435554e12b2c6d315d0504aef_142) | <u>[Legal Proceedings](#i41e3704435554e12b2c6d315d0504aef_142)</u> | <u>[28](#i41e3704435554e12b2c6d315d0504aef_142)</u> |
| [Item 1A.](#i41e3704435554e12b2c6d315d0504aef_145) | <u>[Risk Factors](#i41e3704435554e12b2c6d315d0504aef_145)</u> | <u>[28](#i41e3704435554e12b2c6d315d0504aef_145)</u> |
| [Item 2.](#i41e3704435554e12b2c6d315d0504aef_148) | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i41e3704435554e12b2c6d315d0504aef_148)</u> | <u>[28](#i41e3704435554e12b2c6d315d0504aef_148)</u> |
| [Item 3.](#i41e3704435554e12b2c6d315d0504aef_151) | <u>[Defaults Upon Senior Securities](#i41e3704435554e12b2c6d315d0504aef_151)</u> | <u>[28](#i41e3704435554e12b2c6d315d0504aef_151)</u> |
| [Item 4.](#i41e3704435554e12b2c6d315d0504aef_154) | <u>[Mine Safety Disclosures](#i41e3704435554e12b2c6d315d0504aef_154)</u> | <u>[28](#i41e3704435554e12b2c6d315d0504aef_154)</u> |
| [Item 5.](#i41e3704435554e12b2c6d315d0504aef_157) | <u>[Other Information](#i41e3704435554e12b2c6d315d0504aef_157)</u> | <u>[28](#i41e3704435554e12b2c6d315d0504aef_157)</u> |
| [Item 6.](#i41e3704435554e12b2c6d315d0504aef_163) | <u>[Exhibits](#i41e3704435554e12b2c6d315d0504aef_163)</u> | <u>[29](#i41e3704435554e12b2c6d315d0504aef_163)</u> |
|  | <u>[Signature](#i41e3704435554e12b2c6d315d0504aef_166)</u> | <u>[30](#i41e3704435554e12b2c6d315d0504aef_166)</u> |

---

------

**TRADEMARKS** 

BJ's Wholesale Club<sup>®</sup>, BJ's<sup>®</sup>, Wellsley Farms<sup>®</sup>, Berkley Jensen<sup>®</sup>, My BJ's Perks<sup>®</sup>, BJ's Easy Renewal<sup>®</sup>, BJ's Gas<sup>®</sup>, BJ's One<sup>®</sup>, BJ's One+<sup>®</sup>, BJ's Perks Elite<sup>®</sup>, BJ's Perks Plus<sup>®</sup>, Inner Circle<sup>®</sup>, Same-Day-Select<sup>®</sup>, ExpressPay<sup>®</sup> and BJ's Perks Rewards<sup>®</sup> are all registered trademarks of BJ's Wholesale Club, Inc. Other trademarks, trade names and service marks appearing in this Quarterly Report on Form 10-Q are the property of their respective owners. We do not intend our use or display of those other parties' trademarks, trade names or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement or sponsorship of us by, these other parties. Solely for convenience, trademarks, trade names and service marks referred to in this Quarterly Report on Form 10-Q may appear without the <sup>®</sup>, <sup>™</sup> or <sup>SM</sup> symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks, trade names and service marks.

**DEFINED TERMS** 

As used in this Quarterly Report on Form 10-Q, unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "The Company", "BJ's", "we", "us" and "our" mean BJ's Wholesale Club Holdings, Inc. and, unless the context otherwise requires, its consolidated subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "ABL Revolving Facility" means the Company's revolving credit facility entered into on July 28, 2022;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "ABL Revolving Commitment" means the aggregate committed amount of $1.20 billion under the ABL Revolving Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "First Lien Term Loan" means the Company's senior secured first lien term loan facility that was amended on November 4, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Fifth Amendment" means the Company's fifth amendment to the First Lien Term Loan that was entered into on November 4, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "fiscal year 2025" means the 52 weeks ended January 31, 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "fiscal year 2026" means the 52 weeks ending January 30, 2027;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "GAAP" means generally accepted accounting principles in the United States of America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "ESPP" means the Company's Employee Stock Purchase Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "SOFR" means the Secured Overnight Financing Rate.

------

**PART I—FINANCIAL INFORMATION**

**Item 1. Financial Statements.**

**BJ'S WHOLESALE CLUB HOLDINGS, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(Amounts in thousands, except par value)**

**(Unaudited)**

---

| | | | |
|:---|:---|:---|:---|
| | **May 2, 2026** | **January 31, 2026** | **May 3, 2025** |
| **ASSETS** | | | |
| Current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $27826 | $46245 | $39484 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 319936 | 252789 | 240419 |
| &nbsp;&nbsp;&nbsp;&nbsp;Merchandise inventories | 1668263 | 1555471 | 1567032 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 198876 | 135584 | 81833 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 2214901 | 1990089 | 1928768 |
| Operating lease right-of-use assets, net | 2004451 | 1976013 | 2065890 |
| Property and equipment, net | 2534420 | 2364552 | 1988290 |
| Goodwill | 1008816 | 1008816 | 1008816 |
| Intangibles, net | 94239 | 95462 | 99697 |
| Deferred income taxes | 4593 | 4427 | 7615 |
| Other assets | 67578 | 71116 | 58596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $7928998 | $7510475 | $7157672 |
| **LIABILITIES** |  |  |  |
| Current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term debt | $375000 | $120000 | $150000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 181994 | 209249 | 169568 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 1438931 | 1307405 | 1255867 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 1048934 | 1033579 | 934974 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 3044859 | 2670233 | 2510409 |
| Long-term operating lease liabilities | 1905325 | 1880383 | 1977180 |
| Long-term debt | 399172 | 399099 | 398880 |
| Deferred income taxes | 68228 | 64889 | 55386 |
| Other non-current liabilities | 385155 | 298212 | 244232 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 5802739 | 5312816 | 5186087 |
| Commitments and contingencies (see [Note 5](#i41e3704435554e12b2c6d315d0504aef_52)) |  |  |  |
| **STOCKHOLDERS' EQUITY** |  |  |  |
| Preferred stock; par value $0.01; 5,000 shares authorized, and no shares issued |  |  |  |
| Common stock, par value $0.01; 300,000 shares authorized, 127,693 shares issued and outstanding at May 2, 2026; 129,638 shares issued and outstanding at January 31, 2026; and 149,743 shares issued and 132,051 outstanding at May 3, 2025 | 1277 | 1296 | 1497 |
| Additional paid-in capital | 780976 | 995083 | 1095105 |
| Retained earnings | 1343933 | 1201207 | 1852416 |
| Accumulated other comprehensive income | 73 | 73 | 231 |
| Treasury stock, at cost, no shares at May 2, 2026 and January 31, 2026; and 17,692 shares at May 3, 2025 |  |  | (977664) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 2126259 | 2197659 | 1971585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $7928998 | $7510475 | $7157672 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

**BJ'S WHOLESALE CLUB HOLDINGS, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**

**(Amounts in thousands, except per share amounts)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2, 2026** | **May 3, 2025** |
| Net sales | $5529145 | $5033094 |
| Membership fee income | 132355 | 120389 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 5661500 | 5153483 |
| Cost of sales | 4633599 | 4183984 |
| Selling, general and administrative expenses | 806010 | 760880 |
| Pre-opening expenses | 13978 | 4974 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating income | 207913 | 203645 |
| Interest expense, net | 12367 | 11099 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes | 195546 | 192546 |
| Provision for income taxes | 52820 | 42778 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $142726 | $149768 |
| Income per share attributable to common stockholders—basic: | $1.11 | $1.14 |
| Income per share attributable to common stockholders—diluted: | $1.10 | $1.13 |
| Weighted-average shares of common stock outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 128650 | 131569 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 129383 | 132749 |
| Other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income |  |  |
| Total comprehensive income | $142726 | $149768 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

**BJ'S WHOLESALE CLUB HOLDINGS, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

**(Amounts in thousands)**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Additional<br>Paid-in<br>Capital** | **Retained Earnings** | **Accumulated<br>Other<br>Comprehensive<br>Income** | **Treasury Stock** | **Treasury Stock** | **Total<br>Stockholders'<br>Equity** |
| | **Shares** | **Amount** | **Additional<br>Paid-in<br>Capital** | **Retained Earnings** | **Accumulated<br>Other<br>Comprehensive<br>Income** | **Shares** | **Amount** | **Total<br>Stockholders'<br>Equity** |
| **Balance, January 31, 2026** | 129638 | $1296 | $995083 | $1201207 | $73 |  | $— | $2197659 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | *—* |  |  | 142726 |  | *—* |  | 142726 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock issued under stock incentive plans | 390 | 4 | (4) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | *—* |  | 13280 |  |  | *—* |  | 13280 |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercise of stock options | *—* |  | 125 |  |  | *—* |  | 125 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of treasury stock |  |  |  |  |  | (2335) | (227531) | (227531) |
| &nbsp;&nbsp;&nbsp;&nbsp;Retirement of treasury stock | (2335) | (23) | (227508) |  |  | 2335 | 227531 |  |
| **Balance, May 2, 2026** | 127693 | $1277 | $780976 | $1343933 | $73 |  | $— | $2126259 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Additional<br>Paid-in<br>Capital** | **Retained<br>Earnings** | **Accumulated<br>Other<br>Comprehensive<br>Income** | **Treasury Stock** | **Treasury Stock** | **Total<br>Stockholders'<br>Equity** |
| | **Shares** | **Amount** | **Additional<br>Paid-in<br>Capital** | **Retained<br>Earnings** | **Accumulated<br>Other<br>Comprehensive<br>Income** | **Shares** | **Amount** | **Total<br>Stockholders'<br>Equity** |
| **Balance, February 1, 2025** | 148965 | $1489 | $1079445 | $1702648 | $231 | (17327) | $(936359) | $1847454 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | *—* |  |  | 149768 |  | *—* |  | 149768 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock issued under stock incentive plans | 778 | 8 | (8) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | *—* |  | 10654 |  |  | *—* |  | 10654 |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercise of stock options | *—* |  | 5014 |  |  | *—* |  | 5014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of treasury stock |  |  |  |  |  | (365) | (41305) | (41305) |
| **Balance, May 3, 2025** | 149743 | $1497 | $1095105 | $1852416 | $231 | (17692) | $(977664) | $1971585 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

**BJ'S WHOLESALE CLUB HOLDINGS, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Amounts in thousands)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2, 2026** | **May 3, 2025** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** | | |
| &nbsp;&nbsp;Net income | $142726 | $149768 |
| &nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 76452 | 69665 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs and accretion of original issue discount | 273 | 273 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 13280 | 10654 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax provision (benefit) | 3173 | (4913) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating leases and other non-cash items | (30631) | (24397) |
| &nbsp;&nbsp;Increase (decrease) in cash due to changes in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | (51300) | 39735 |
| &nbsp;&nbsp;&nbsp;&nbsp;Merchandise inventories | (112792) | (58044) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (61537) | (15283) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | (5) | (1476) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 131526 | 2355 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 24446 | 24783 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-current liabilities | 4347 | 14973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 139958 | 208093 |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions to property and equipment, net of disposals | (182004) | (140497) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investing activities | (2630) | (1794) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (184634) | (142291) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from revolving lines of credit | 320000 | 66000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on revolving lines of credit | (65000) | (91000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash received from stock option exercises | 125 | 5014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of treasury stock | (225717) | (41305) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (payments on) proceeds from financing obligations | (73) | 8721 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financing activities | (3078) | (2020) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 26257 | (54590) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (decrease) increase in cash and cash equivalents | (18419) | 11212 |
| &nbsp;&nbsp;Cash and cash equivalents at beginning of period | 46245 | 28272 |
| &nbsp;&nbsp;Cash and cash equivalents at end of period | $27826 | $39484 |
| Supplemental cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid | $4207 | $8966 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid | 103250 | 12738 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities arising from obtaining right-of-use assets and other non-cash lease-related operating items | 80020 | 14583 |
| Non-cash financing and investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance lease liabilities arising from obtaining right-of-use assets | 67969 | 525 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables arising from failed sale-leaseback financing obligations | 15847 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property additions included in accrued expenses | 50164 | 40404 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock acquisitions included in accrued expenses | 3886 | 1561 |

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The accompanying notes are an integral part of the condensed consolidated financial statements.

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**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**1. Description of Business**

BJ's Wholesale Club Holdings, Inc. and its wholly-owned subsidiaries (the "Company" or "BJ's") is a leading operator of membership warehouse clubs concentrated primarily in the eastern half of the United States. The Company provides a curated assortment focused on groceries, fresh foods, general merchandise, gasoline, and other ancillary services to deliver a differentiated shopping experience that is further enhanced by the Company's digital capabilities. As of May 2, 2026, BJ's operated 264 warehouse clubs and 205 gas stations in 22 states.

**2. Summary of Significant Accounting Policies**

***(a) Basis of Presentation***

The accompanying interim financial statements of BJ's Wholesale Club Holdings, Inc. are unaudited and, in the opinion of management, reflect all normal recurring adjustments considered necessary for a fair statement of the Company's financial statements in accordance with GAAP.

The condensed consolidated balance sheet as of January 31, 2026 is derived from the audited consolidated balance sheet as of that date. The Company's business, as is common with the business of retailers generally, is subject to some seasonality. The Company's net sales and cash flows have typically been highest in the fourth quarter holiday season and lowest in the first quarter of each fiscal year.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for fiscal year 2025, as filed with the Securities and Exchange Commission on March 12, 2026.

***(b) Fiscal Year***

The Company follows the National Retail Federation's fiscal calendar and reports financial information on a 52- or 53-week year ending on the Saturday closest to January 31. The thirteen-week periods ended May 2, 2026 and May 3, 2025 are referred to herein as the "first quarter of fiscal year 2026" and the "first quarter of fiscal year 2025," respectively. Operating results for the thirteen week period ended May 2, 2026 are not necessarily indicative of the results that may be expected for the 52-week fiscal year ending January 30, 2027.

***(c) Recently Issued Accounting Pronouncements and Policies***

The Company's accounting policies are set forth in the audited financial statements included in the Company's Annual Report on Form 10-K for fiscal year 2025. There have been no material changes to these accounting policies and no accounting pronouncements adopted that had a material impact on the Company's financial statements aside from those identified herein.

In November 2024, the Financial Accounting Standards Board ("FASB") issued *Accounting Standards Update* ("*ASU") 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*. ASU 2024-03 requires disclosure of certain costs and expenses on an interim and annual basis in the notes to the financial statements. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The disclosures required under the guidance can be applied either prospectively to financial statements issued for reporting periods after the effective date or retrospectively to any or all periods presented in the financial statements. The Company is currently evaluating the impact of this guidance on the notes to its financial statements, and does not expect ASU 2024-03 to affect its condensed consolidated financial statements.

In September 2025, the FASB issued *ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.* ASU 2025-06 modernizes the accounting for internal-use software costs by increasing the operability of the recognition guidance considering different methods of software development, and removing the previous "development stage" model to determine when costs are able to be capitalized. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027 and interim periods within those annual reporting periods. Early adoption is permitted. The Company may apply the guidance prospectively, retrospectively, or via a modified

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prospective transition method. The Company is currently evaluating the impact that this guidance will have on its condensed consolidated financial statements and disclosures.

***(d) Recently Adopted Accounting Pronouncements and Policies***

In December 2025, the FASB issued *ASU No. 2025-12, Codification Improvements* which serves to clarify, correct errors, or make minor improvements to various topics within the Codification. Generally, the amendments in this ASU are not intended to result in significant changes to current accounting principles. ASU 2025-12 is effective for fiscal years beginning after December 15, 2026 and interim periods within those annual reporting periods. Early adoption is permitted, and entities may elect to adopt the amendments on an issue-by-issue basis.

The Company adopted ASU 2025-12 during the first quarter of fiscal year 2026, which changes the accounting for treasury share retirements. Under the new guidance, the Company elected to recognize the excess of the repurchase price over par value entirely as a reduction from additional paid-in-capital ("APIC"), provided that APIC remains positive. This policy change is reflected within the condensed consolidated balance sheets, statements of stockholders' equity, and "<u>[Note 7](#i41e3704435554e12b2c6d315d0504aef_61)</u>. Treasury Shares and Share Repurchase Program." The adoption did not impact the condensed consolidated statements of operations and comprehensive income or the statements of cash flows.

**3. Revenue Recognition**

*Net sales*

The Company recognizes net sales at clubs and gas stations when the customer takes possession of the goods and tenders payment. Revenue is recorded at the point-of-sale based on the transaction price, net of any applicable discounts, sales tax, and expected refunds. For digitally-enabled sales, including buy-online-pickup-in-club ("BOPIC"), curbside delivery, and same-day delivery, the Company generally recognizes revenue when the customer takes possession of the merchandise. For ship-to-home sales, the Company recognizes revenue when control of the merchandise is transferred to the customer, which is typically at the time of shipment.

In the ordinary course of business, sales tax is collected at the time of purchase on items that are taxable in the respective jurisdiction. Sales tax is not included within net sales in the consolidated statements of operations and comprehensive income. Sales tax is recorded as a liability at the point-of-sale and subsequently remitted to the appropriate taxing authority.

*Rewards programs*

The Company's Club+ program allows participating members to earn 2% cash back, up to a maximum of $500 per year, on qualified purchases made in BJ's clubs, on bjs.com, or in the BJ's mobile app, a 5-cent per gallon discount at BJ's gas locations, and two free same-day deliveries. Cash back is in the form of electronic rewards issued to each member once $10 in rewards have been earned.

The Company's co-branded credit card program, known as the BJ's One and BJ's One+ program, allows cardholders the opportunity to earn up to 5% cash back on purchases made in BJ's clubs, on bjs.com, or in the BJ's mobile app, and up to a 15-cent per gallon discount on gasoline when paying with a BJ's One or BJ's One+ Mastercard at BJ's gas locations. BJ's One+ Mastercard cardholders also receive two free same-day deliveries if such benefit has not already been received under the Club+ program. Cash back is in the form of electronic rewards issued to each member monthly on the credit card statement date. Earned rewards on each of the Club+ and co-branded credit card programs do not expire.

The Company accounts for these transactions as multiple-element arrangements and allocates the transaction price to separate performance obligations using their relative fair values. The Company includes the fair value of rewards in deferred revenue at the time the rewards are earned. Earned rewards may be redeemed on future purchases made at BJ's. The Company recognizes revenue related to earned rewards when customers redeem such rewards as part of a purchase at one of the Company's clubs, on bjs.com, or in the BJ's mobile app. While the Company continues to honor all rewards presented for redemption, the likelihood of redemption is deemed to be remote for certain rewards due to historical experience, including after long periods of inactivity, and rewards being linked to expired or canceled memberships. In these circumstances, the Company recognizes revenue, or breakage, from unredeemed rewards. The Company earns monthly royalties under the BJ's One and BJ's One+ credit card programs related to the use of the BJ's trade name and the issuance of rewards and gasoline discounts to cardholders. Royalty revenue is recognized based upon actual customer activities, such as reward redemptions, in the period in which the underlying activity occurs.

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*Membership*

The Company charges a membership fee to its customers, which allows customers to shop in the Company's clubs, on bjs.com, or in the BJ's mobile app, and purchase gasoline at the Company's gas stations for the duration of the membership, which is generally twelve months. In addition, members have access to other ancillary services, coupons, and promotions. As the Company has the obligation to provide access to its clubs, website, mobile app, and gas stations for the duration of the membership term, the Company recognizes membership fees on a straight-line basis over the life of the membership. All membership fees and related membership revenues are recorded as membership fee income in the condensed consolidated statements of operations and comprehensive income.

*Gift Card Program*

The Company sells BJ's gift cards that allow customers to redeem the cards for future purchases equal to the loaded value of the gift card. Revenue from gift card sales is recognized upon redemption of the gift cards and control of the purchased goods or services is transferred to the customer.

*Contract Balances*

Current and long-term deferred revenue balances are included within accrued expenses and other current liabilities and other non-current liabilities, respectively, in the condensed consolidated balance sheets.

The following table summarizes the Company's deferred revenue balance related to outstanding performance obligations for contracts with customers, excluding earned rewards which are noted below (in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **May 2, 2026** | **January 31, 2026** | **May 3, 2025** |
| Current: |  |  |  |
| &nbsp;&nbsp; Rewards programs: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty revenue | $6679 | $10572 | $6913 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Co-brand initiatives | 2580 | 2910 | 3945 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total rewards programs | 9259 | 13482 | 10858 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Membership | 285237 | 240643 | 260578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gift card program | 17083 | 18252 | 15875 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E-commerce sales | 7928 | 9059 | 6866 |
| Long-term: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rewards programs: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Co-brand initiatives | 2221 | 2324 | 2317 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deferred revenue | $321728 | $283760 | $296494 |

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The following table presents deferred revenue activity related to earned rewards (in thousands):

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| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2, 2026** | **May 3, 2025** |
| Earned rewards balance, beginning of period | $71427 | $57474 |
| &nbsp;&nbsp;Rewards earned | 97116 | 88197 |
| &nbsp;&nbsp;Revenue recognized on rewards | (95924) | (84383) |
| Earned rewards balance, end of period | $72619 | $61288 |

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Earned rewards are combined in one homogeneous pool and are not separately identifiable. Revenue recognized on rewards consists of rewards that were included in the deferred revenue balance at the beginning of the period as well as rewards that were earned during the period.

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The following table summarizes the Company's revenue recognized during the period that was included in the opening deferred balance, excluding earned rewards, as of January 31, 2026 and February 1, 2025 (in thousands):

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| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2, 2026** | **May 3, 2025** |
| Rewards programs: |  |  |
| &nbsp;&nbsp;Royalty revenue | $10572 | $9972 |
| &nbsp;&nbsp;Co-brand initiatives | 1111 | 960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total rewards programs | 11683 | 10932 |
| Membership | 107743 | 106337 |
| Gift card program | 2787 | 2707 |
| E-commerce sales | 9059 | 7839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | $131272 | $127815 |

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Performance obligations related to royalty revenue, membership fees, and e-commerce sales are typically satisfied over a period of twelve months or less. Funds received related to marketing and other integration costs in connection with our co-brand credit card program are recognized as performance obligations are satisfied. The timing and recognition of earned rewards and gift card redemptions varies depending on consumer behavior and spending patterns.

*Disaggregation of Revenue*

The following table summarizes the Company's percentage of net sales disaggregated by category:

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| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2, 2026** | **May 3, 2025** |
| Perishables, Grocery, and Sundries | 69% | 73% |
| General Merchandise and Services | 10% | 9% |
| Gasoline and Other | 21% | 18% |

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**4. Debt and Credit Arrangements**

The following table summarizes the Company's debt (in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **May 2, 2026** | **January 31, 2026** | **May 3, 2025** |
| ABL Revolving Facility | $375000 | $120000 | $150000 |
| First Lien Term Loan | 400000 | 400000 | 400000 |
| Unamortized original issue discount and debt issuance costs | (828) | (901) | (1120) |
| Less: Short-term debt | (375000) | (120000) | (150000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | $399172 | $399099 | $398880 |

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*ABL Revolving Facility*

On July 28, 2022, the Company entered into the ABL Revolving Facility with an ABL Revolving Commitment of $1.20 billion pursuant to that certain credit agreement (the "Credit Agreement") with Bank of America, N.A., as administrative agent and collateral agent, and the other lenders party thereto. The maturity date of the ABL Revolving Facility is July 28, 2027.

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Revolving loans under the ABL Revolving Facility are available in an aggregate amount equal to the lesser of the aggregate ABL Revolving Commitment or a borrowing base based on the value of certain inventory and accounts and credit card receivables, subject to specified advance rebates and reserves as set forth in the Credit Agreement. Indebtedness under the ABL Revolving Facility is secured by substantially all of the assets (other than real estate) of the Company and its subsidiaries, subject to customary exceptions. As amended, interest on the ABL Revolving Facility is calculated either at SOFR plus a range of 100 to 125 basis points or a base rate plus 0 to 25 basis points, based on excess availability. The Company will also pay an unused commitment fee of 20 basis points per annum on the unused ABL Revolving Commitment. Each borrowing is for a period of one, three, or six months, as selected by the Company, or for such other period that is twelve months or less requested by the Company and consented to by the lenders and administrative agent.

The ABL Revolving Facility places certain restrictions (i.e., covenants) upon the Borrower's, and its subsidiaries', ability to, among other things, incur additional indebtedness, pay dividends, and make certain loans, investments, and divestitures. The ABL Revolving Facility contains customary events of default (including payment defaults, cross-defaults to certain of our other indebtedness, breach of representations and covenants and change of control). The occurrence of an event of default under the ABL Revolving Facility would permit the lenders to accelerate the indebtedness and terminate the ABL Revolving Facility.

As of May 2, 2026, there was $375.0 million outstanding in loans under the ABL Revolving Facility and $8.8 million in outstanding letters of credit. The interest rate on the ABL Revolving Facility was 4.75% and unused capacity was $816.2 million. As of January 31, 2026 and May 3, 2025, the interest rate on the ABL Revolving Facility was 4.77% and 5.42%, respectively.

*First Lien Term Loan*

On November 4, 2024, the Company entered into an amendment (the "Fifth Amendment") to the First Lien Term Loan Credit Agreement, with Nomura Corporate Funding Americas, LLC, as administrative agent and collateral agent, and the lenders party thereto.

The Fifth Amendment, among other things, provided for a new tranche of term loans in an aggregate principal amount of $400.0 million, which refinanced and replaced in full the existing Tranche B term loans outstanding under the First Lien Term Loan Credit Agreement immediately prior to the effectiveness of the Fifth Amendment. In addition, the Fifth Amendment reduced applicable margin in respect of the interest rate from SOFR plus 200 basis points per annum to SOFR plus 175 basis points per annum. The maturity date of the First Lien Term Loan is February 3, 2029.

Voluntary prepayments are permitted. Principal payments must be made on the First Lien Term Loan pursuant to an annual excess cash flow calculation when the net leverage ratio exceeds 3.50 to 1.00. As of May 2, 2026, the Company's net leverage ratio did not exceed 3.50 to 1.00, and therefore, no incremental principal payments were required. The First Lien Term Loan is subject to certain affirmative and negative covenants but no financial covenants. It is secured on a senior basis by certain "fixed assets" of the Company and on a junior basis by certain "liquid" assets of the Company.

There was $400.0 million outstanding under the First Lien Term Loan as of each of May 2, 2026, January 31, 2026, and May 3, 2025. The interest rate on the First Lien Term Loan was 5.41%, 5.43%, and 6.07% at May 2, 2026, January 31, 2026, and May 3, 2025, respectively.

**5. Commitments and Contingencies**

The Company is involved in various legal proceedings that are typical of a retail business. In accordance with applicable accounting guidance, an accrual will be established for legal proceedings if and when those matters present loss contingencies that are both probable and estimable. The Company does not believe the resolution of any current proceedings will result in a material impact to the condensed consolidated financial statements. Gain contingencies are recognized when they are realized or realizable.

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**6. Stock Incentive Plans**

On June 13, 2018, the Company's board of directors adopted, and its stockholders approved, the BJ's Wholesale Club Holdings, Inc. 2018 Incentive Award Plan (the "2018 Plan"). The 2018 Plan provides for, among other types of awards, the grant of restricted stock, restricted stock units, and performance shares.

The 2018 Plan authorizes the issuance of 13,148,058 shares and allows for most shares that are forfeited, expire, or are settled in cash to be reissued for new grants that may be awarded. For further details on the 2018 Plan, refer to "Note 11. Stock Incentive Plans" included in our Annual Report on Form 10-K for fiscal year 2025, as filed with the Securities and Exchange Commission on March 12, 2026.

As of May 2, 2026, there were 4,051,667 shares available for future issuance under the 2018 Plan.

The following table summarizes the Company's stock award activity during the thirteen weeks ended May 2, 2026 (shares in thousands):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Stock Options** | **Stock Options** | **Restricted Stock** | **Restricted Stock** | **Restricted Stock Units** | **Restricted Stock Units** | **Performance Stock Units** | **Performance Stock Units** |
| | **Shares** | **Weighted-<br>Average<br>Exercise<br>Price** | **Shares** | **Weighted-<br>Average<br>Grant<br>Date Fair<br>Value** | **Shares** | **Weighted-<br>Average<br>Grant<br>Date Fair<br>Value** | **Shares**<sup>(a)</sup> | **Weighted-<br>Average<br>Grant<br>Date Fair<br>Value** |
| Outstanding, January 31, 2026 | 522 | $20.52 | 93 | $78.15 | 480 | $95.76 | 507 | $84.56 |
| Granted <sup>(b)</sup> |  |  |  |  | 294 | 94.61 | 242 | 94.61 |
| Forfeited/canceled <sup>(c)</sup> |  |  | (1) | 76.07 | (11) | 95.41 | (12) | 76.07 |
| Exercised/vested | (5) | 25.07 | (81) | 76.07 | (174) | 91.29 | (211) | 64.58 |
| Outstanding, May 2, 2026 | 517 | $20.47 | 11 | $92.95 | 589 | $96.51 | 526 | $93.78 |

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(a) Shares outstanding reflect a 100% payout. However, the actual payout for the remaining performance stock unit awards granted in fiscal year 2021 is expected to be 200%, and the actual payout for performance stock unit awards granted in fiscal year 2023, which vested in the first quarter of fiscal year 2026, was 92%. Actual payout for the performance stock unit awards granted in each of fiscal years 2024, 2025, and 2026, which vest in fiscal years 2027, 2028, and 2029, respectively, could be below 100% or up to 300%.

(b) Includes 38 incremental performance stock units granted in fiscal year 2021 with a weighted-average grant date fair value of $44.04, that vested in fiscal year 2026 at greater than 100% of target payout based on performance.

(c) Includes 12 performance stock units granted in fiscal year 2023 with a weighted-average grant date fair value of $76.07, that vested in fiscal year 2026 at less than 100% of target payout based on performance.

Stock-based compensation expense was $13.3 million and $10.7 million for the thirteen weeks ended May 2, 2026 and May 3, 2025, respectively.

On June 14, 2018, the Company's board of directors adopted, and its stockholders approved, the ESPP, which became effective July 1, 2018. The aggregate number of shares of common stock reserved for issuance under the ESPP is equal to the sum of (i) 973,014 shares and (ii) an annual increase on the first day of each calendar year beginning in 2019 and ending in 2028 equal to the lesser of (A) 486,507 shares, (B) 0.5% of the shares outstanding (on an as converted basis) on the last day of the immediately preceding fiscal year and (C) such smaller number of shares as determined by the Company's board of directors. The amount of expense recognized related to the ESPP was $0.6 million and $0.5 million for the thirteen weeks ended May 2, 2026 and May 3, 2025, respectively. As of May 2, 2026, there were 3,644,425 shares available for issuance under the ESPP.

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**7. Treasury Shares and Share Repurchase Program**

*Treasury Shares Acquired on Stock-Based Awards*

The Company acquired 221,072 shares for $21.0 million and 310,102 shares for $35.1 million in the thirteen weeks ended May 2, 2026 and May 3, 2025, respectively, to satisfy employees' tax withholding obligations upon the vesting of restricted stock and performance stock awards, which was recorded as treasury stock.

*Share Repurchase Program*

On November 18, 2024, the Company's board of directors approved a share repurchase program (the "2024 Repurchase Program") that allows the Company to repurchase up to $1.00 billion of its outstanding common stock from time to time as market conditions warrant. The 2024 Repurchase Program was effective on February 1, 2025 and expires in January 2029. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate requirements, market conditions, and other corporate liquidity requirements and priorities. The Company initiated the 2024 Repurchase Program to mitigate potentially dilutive effects of stock awards granted by the Company, in addition to enhancing shareholder value.

The Company repurchased 2,114,000 shares for $206.6 million and 55,000 shares for $6.2 million under the 2024 Repurchase Program during the thirteen weeks ended May 2, 2026 and May 3, 2025, respectively. The Company accounts for treasury stock under the cost method based on the fair market value of the shares on the dates of repurchase plus any direct costs incurred.

As of May 2, 2026, $545.0 million remained available to purchase under the 2024 Repurchase Program.

*Retirement of Treasury Shares*

During the first quarter of fiscal 2026, the Company retired 2,335,072 shares of treasury stock, which represented the cumulative number of shares held in the Company's treasury due to acquisitions during the current period. The retirement of these shares resulted in decreases in each of treasury stock and APIC of $227.5 million. There were no share retirements during the first quarter of fiscal year 2025.

**8. Income Taxes**

The Company projects the estimated annual effective tax rate for fiscal year 2026 to be 27.4%, excluding the tax effect of discrete events, such as excess tax benefits from stock-based compensation, changes in tax legislation, settlements of tax audits and changes in uncertain tax positions, among others.

The Company's effective income tax rate was 27.0% and 22.2% for the thirteen weeks ended May 2, 2026 and May 3, 2025, respectively. The increase in the effective income tax rate was primarily attributable to lower excess tax benefits from stock-based compensation compared to the prior year period.

Cash taxes paid as presented in the supplemental cash flow information section of the condensed consolidated statements of cash flows includes $91.2 million paid for transferable credits during the thirteen weeks ended May 2, 2026.

The Company is subject to taxation in the U.S. federal and various state taxing jurisdictions. The Company's tax years from 2022 forward remain open and subject to examination by the Internal Revenue Service and various state taxing authorities.

On July 4, 2025, new legislation, commonly known as the One Big Beautiful Bill Act (the "Act"), was signed into law. Among other provisions, the Act reestablished and made permanent 100% initial-year bonus depreciation on qualifying property, as well as the immediate deduction for domestic research and development expenses. The Company has quantified the impact of the Act to our financial statements and has reflected the effects within the consolidated financial statements as of and for the thirteen weeks ended May 2, 2026.

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**9. Fair Value Measurements**

Certain assets and liabilities are required to be carried at fair value in accordance with GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The Company uses a three-level hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable inputs other than quoted market prices included in Level 1 such as quoted market prices for markets that are not active or other inputs that are observable or can be corroborated by observable market data.

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

*Financial Assets and Liabilities*

The fair value of the Company's long-term debt is estimated based on current market rates for our specific debt instrument. Judgment is required to develop these estimates. As such, the estimated fair value of long-term debt is classified within Level 2, as defined under GAAP.

The gross carrying amount and fair value of the Company's debt at May 2, 2026 are as follows (in thousands):

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| | | |
|:---|:---|:---|
| | **Carrying Amount** | **Fair Value** |
| ABL Revolving Facility | $375000 | $375000 |
| First Lien Term Loan | 400000 | 402500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Debt | $775000 | $777500 |

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The gross carrying amount and fair value of the Company's debt at January 31, 2026 are as follows (in thousands):

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| | | |
|:---|:---|:---|
| | **Carrying Amount** | **Fair Value** |
| ABL Revolving Facility | $120000 | $120000 |
| First Lien Term Loan | 400000 | 404252 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Debt | $520000 | $524252 |

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The gross carrying amount and fair value of the Company's debt at May 3, 2025 are as follows (in thousands):

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| | | |
|:---|:---|:---|
| | **Carrying Amount** | **Fair Value** |
| ABL Revolving Facility | $150000 | $150000 |
| First Lien Term Loan | 400000 | 400916 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Debt | $550000 | $550916 |

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*Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis*

The Company believes that the carrying amounts of its other financial instruments, including cash, accounts receivable, and accounts payable, approximate their fair values due to the short-term maturities of these instruments.

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**10. Earnings Per Share**

The table below reconciles basic weighted-average shares of common stock outstanding to diluted weighted-average shares of common stock outstanding for the thirteen weeks ended May 2, 2026 and May 3, 2025 (in thousands):

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| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2, 2026** | **May 3, 2025** |
| Weighted-average shares of common stock outstanding, used for basic computation | 128650 | 131569 |
| &nbsp;&nbsp;&nbsp;&nbsp;Plus: Incremental shares of potentially dilutive securities | 733 | 1180 |
| Weighted-average shares of common stock and dilutive potential shares of common stock outstanding | 129383 | 132749 |

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The table below summarizes awards that were excluded from the computation of diluted earnings for the thirteen weeks ended May 2, 2026 and May 3, 2025, as their inclusion would have been anti-dilutive (in thousands):

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| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2, 2026** | **May 3, 2025** |
| Stock-based awards | 246 | 89 |

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**11. Segment Reporting**

The Company's operations are primarily retail club and other sales procured from clubs and distribution centers, representing one operating segment. All of the Company's identifiable assets are located in the United States. The Company does not have significant sales outside the United States, nor does any customer represent more than 10% of total revenues for any period presented.

The chief operating decision maker ("CODM") is the Company's chairman and chief executive officer. The CODM uses net income, as reported in the condensed consolidated statements of operations and comprehensive income, in evaluating performance of the retail operations segment and determining how to allocate resources of the Company as a whole, including investing in clubs, stockholder return programs, and other strategies. The CODM does not review assets when evaluating the results of the segment, and therefore, such information is not presented.

The following table provides the operating financial results of our reportable segment (in thousands):

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| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2, 2026** | **May 3, 2025** |
| Total revenues | $5661500 | $5153483 |
| Less: significant and other segment expenses |  |  |
| &nbsp;&nbsp;&nbsp;Merchandise cost of sales <sup>(a)</sup> | 3520203 | 3363785 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses <sup>(b)</sup> | 819988 | 765854 |
| &nbsp;&nbsp;&nbsp;Other segment expenses <sup>(c)</sup> | 1178583 | 874076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $142726 | $149768 |

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<sup>(a)</sup> Merchandise cost of sales represents those expenses related to the sales of merchandise including inventory costs and distribution costs, and excludes costs related to gasoline and membership fee income.

<sup>(b)</sup> Selling, general and administrative expenses is inclusive of pre-opening expenses, stock-based compensation, and other corporate expenses.

<sup>(c)</sup> Other segment expenses primarily consists of other costs of revenues, including gas, as well as interest expense and income tax expense.

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**FORWARD-LOOKING STATEMENTS** 

This Quarterly Report on Form 10-Q contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q should be considered forward-looking statements, including, without limitation, statements regarding our future results of operations and financial position, business strategy, transformation, strategic priorities and future progress, including expectations regarding deferred revenue, lease commencement dates, impact of infrastructure investments on our operating model and selling, general and administrative expenses, sales of gasoline and gross profit margin rates, share repurchases, and new club and gas station openings, as well as statements that include terms such as "may," "might," "will," "should," "expect," "plan," "anticipate," "can," "could," "intend," "confident," "project," "believe," "estimate," "predict," "continue," "forecast," "would," or the negative of these terms or other similar expressions. The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These statements involve known and unknown risks, uncertainties and other important factors that may cause our 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;uncertainties in the financial markets including, without limitation, as a result of disruptions and instability in the banking and financial services industries, wars and global political conflicts, and the effect of certain economic conditions or events on consumer and small business spending patterns and debt levels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;risks related to our dependence on having a large and loyal membership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;domestic and international economic conditions, including volatility in inflation or interest rates, supply chain disruptions, construction delays, tariffs, and exchange rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;our ability to procure the merchandise we sell at the best possible prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;the effects of competition in, and regulation of, the retail industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;our dependence on vendors to supply us with quality merchandise at the right time and at the right price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;risks related to our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;changes in laws related to, or the government's administration of, the Supplemental Nutrition Assistance Program ("SNAP") or its electronic benefit transfer systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;the risks and uncertainties related to the impact of any pandemic, epidemic or outbreak of any other highly infectious disease on the U.S., regional and global economies and on our business, financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;risks related to climate change and natural disasters, including hurricanes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;our ability to identify and respond effectively to consumer trends, including our ability to successfully maintain a relevant digital experience for our members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;risks related to cybersecurity, which may be heightened due to our e-commerce business, including our ability to protect the privacy of member or business information and the security of payment card information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;risks relating to our ability to attract and retain a qualified management team and other team members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;risks relating to our ability to implement our growth strategy by opening new clubs, and gasoline stations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;the other risk factors identified in our filings with the Securities and Exchange Commission (the "SEC"), including in particular those set forth under "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026 (the "Annual Report on Form 10-K for fiscal year 2025") and our other filings with the SEC.

Given these uncertainties, you should not place undue reliance on any forward-looking statements. Except as required by applicable law, we assume no obligation to update these forward-looking statements, even if new information becomes available in the future, and you should not rely upon these forward-looking statements after the date of this Quarterly Report on Form 10-Q.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

*The following discussion and analysis is intended to promote an understanding of the results of operations and financial condition of the Company and is provided as a supplement to, and should be read in conjunction with, our unaudited condensed consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q, as well as the audited consolidated financial statements and the related notes thereto in our Annual Report on Form 10-K for fiscal year 2025. The following discussion may contain forward-looking statements that reflect our plans, estimates and assumptions. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause such differences are discussed in the sections of this Quarterly Report on Form 10-Q titled "Forward-Looking Statements" and in Part I. "Item 1A. Risk Factors" in our Annual Report on Form 10-K for fiscal year 2025 and subsequent filings with the SEC.*

*We report on the basis of a 52- or 53-week fiscal year, which ends on the Saturday closest to January 31. Accordingly, references herein to "fiscal year 2026" relate to the 52 weeks ending January 30, 2027, and references herein to "fiscal year 2025" relate to the 52 weeks ended January 31, 2026. The first quarter of fiscal year 2026 ended on May 2, 2026, and the first quarter of fiscal year 2025 ended on May 3, 2025, and both included thirteen weeks.*

**Overview**

BJ's Wholesale Club is a leading operator of membership warehouse clubs concentrated primarily in the eastern half of the United States. We deliver significant value to our members, consistently offering up to 25% savings on a representative basket of manufacturer-branded groceries compared to traditional supermarket competitors. We provide a curated assortment focused on groceries, fresh foods, general merchandise, gasoline, and other ancillary services to deliver a differentiated shopping experience that is further enhanced by our digital capabilities. Additionally, we provide access to coupons and promotions to deliver further value to our members.

Since pioneering the warehouse club model in New England in 1984, we have grown our footprint to 267 large-format, high-volume warehouse clubs and 205 gas stations spanning 22 states as of the date of this filing. In our originating New England market, which has high population density and generates a disproportionate part of U.S. gross domestic product ("GDP"), we operate nearly three times the number of clubs compared to the next largest warehouse club competitor. In addition to shopping in our clubs, members are able to shop when and how they want through our website, bjs.com, and our highly rated mobile app, which allows them to use our BOPIC service, curbside delivery, same-day delivery or traditional ship-to-home service, as well as through the DoorDash and Instacart marketplaces. We also offer Same-Day Select, which offers BJ's members the ability to pay a one-time fee for unlimited same-day deliveries over a one-year period. Additionally, members may use ExpressPay<sup>®</sup> to skip checkout lines when they shop in club and pay via their mobile devices.

Our goal is to offer our members significant value and a meaningful return in savings on their annual membership fee. We have over 8 million members paying annual fees to gain access to savings on groceries, general merchandise, services, and gasoline. The annual membership fee for our Club membership is generally $60, and the annual membership fee for our Club+ membership, which offers additional value-enhancing features, is generally $120. Prior to January 1, 2025, the Club and Club+ membership fees were $55 and $110 per year, respectively. We believe that members can save over ten times their $60 Club membership fee versus what they would otherwise pay at traditional supermarket competitors when they spend $2,500 or more per year at BJ's on manufacturer-branded groceries. In addition to providing significant savings on a representative basket of manufacturer-branded groceries, we accept all manufacturer coupons and also carry our own exclusive brands that enable members to save on price without compromising on quality. Our two private label brands, Wellsley Farms<sup>®</sup> and Berkley Jensen<sup>®</sup>, represented approximately 27% of our total net sales, excluding gasoline, for fiscal year 2025. Our customers recognize the relevance of our value proposition across economic environments, as demonstrated by over 25 consecutive years of membership fee income growth. Our membership fee income was $511.7 million for the trailing twelve-months ended May 2, 2026.

Our business is subject to some seasonality. Historically, our business has generally realized a slightly higher portion of net sales and cash flows from operations in the second and fourth fiscal quarters, attributable primarily to the impact of the summer and year-end holiday season, respectively. Our quarterly results have been, and will continue to be, affected by the timing of new club openings and their associated pre-opening expenses. As a result of these factors, our financial results for any single quarter or for periods of less than a year are not necessarily indicative of the results that may be achieved for a full fiscal year.

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**Factors Affecting Our Business**

*Overall economic trends*

The overall economic environment and related changes in consumer behavior have a significant impact on our business. In general, positive conditions in the broader economy promote customer spending in our clubs, while economic weakness, which generally results in a reduction of customer spending, may have a different or more extreme effect on spending at our clubs. Macroeconomic factors that can affect customer spending patterns, and thereby our results of operations, include, among others, employment rates, changes to the SNAP, government stimulus programs, tax legislation, business conditions, changes in the housing market, the availability of credit, interest rates and inflation, tariffs, tax rates, and fuel and energy costs. In addition, unemployment rates and benefits may cause us to experience higher labor costs.

*Size and loyalty of membership base*

The membership model is a critical element of our business. Members drive our results of operations through their membership fee income and their purchases. The majority of members renew within six months following their renewal date. Therefore, our renewal rate is a trailing calculation that captures renewals during the period seven to eighteen months prior to the reporting date. We have grown our membership fee income each year for over 25 consecutive years and the quality of our membership mix is strong as evidenced by our higher tier penetration growth in the first thirteen weeks of fiscal year 2026. Our tenured membership renewal rate, a key indicator of membership engagement, satisfaction and loyalty, was 90% at the end of fiscal year 2025.

*Effective sourcing and distribution of products and consumer demands*

Our net sales and gross profit are affected by our ability to purchase our products in sufficient quantities at competitive prices. Further, our ability to maintain our appeal to existing customers and attract new customers primarily depends on our ability to originate, develop, and offer a compelling product assortment responsive to customer preferences. As a result, our level of net sales could be adversely affected due to constraints in our supply chain, including our inability to procure and stock sufficient quantities of some merchandise in a manner that is able to match market demand from our customers.

*Infrastructure investment*

Our historical operating results reflect the impact of our ongoing investments to support our growth. We have made significant investments in our business that we believe have laid the foundation for continued profitable growth. We believe that expanding our club footprint, bringing substantially all of our end-to-end perishable supply chain in-house, enhancing our information systems, including our distribution center and transportation management systems, and investing in hardware, software, and digitally enabled shopping capabilities for convenience, such as BOPIC, curbside pickup, same-day delivery, ExpressPay, and a digital coupon gallery will enable us to replicate our profitable club format and provide a differentiated shopping experience. We expect these infrastructure investments to support our successful operating model across our club operations.

*Gasoline prices*

The market price of gasoline impacts our net sales and comparable club sales, and large fluctuations in the price of gasoline have a short-term impact on our sales and margins. Retail gasoline prices are driven by daily crude oil and wholesale commodity market changes and are volatile, as they are influenced by factors that include changes in demand and supply of oil and refined products, global geopolitical events, regional market conditions, and supply interruptions caused by severe weather conditions. The change in crude oil prices impacts the purchase price of wholesale petroleum fuel products, which in turn impacts retail gasoline prices at the pump. During times when prices are particularly volatile, differences in pricing and procurement strategies between the Company and its competitors lead to temporary margin contraction or expansion, depending on whether prices are rising or falling, and this impact affects our overall results for a fiscal quarter.

In addition, the relative level of gasoline prices from period to period leads to differences in our net sales between those periods. Further, because we generally attempt to maintain a fairly stable gross profit per gallon on an absolute dollar basis, this variance in net sales, which may be substantial, may or may not have a significant impact on our operating income.

*Inflation and deflation trends*

Our financial results can be directly impacted by substantial changes in product costs due to commodity cost fluctuations or general inflation, disinflation, or deflation, which could lead to a reduction in our sales, as well as greater margin pressure, as

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costs may not be able to be passed on to consumers. Changes in commodity prices and changes in inflation rates have impacted several categories of our business and may continue to do so. Inflationary volatility can be attributed to macroeconomic factors including supply chain disruptions, government stimulus, interest rates, tariffs, and other factors. In response to general inflationary volatility, we seek to minimize the impact of such events by sourcing our merchandise from different vendors, changing our product mix, or increasing our pricing when necessary.

**Results of Operations** 

The following table summarizes key components of our results of operations for the periods indicated:

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| | | |
|:---|:---|:---|
| ***Statement of Operations Data*** | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| **(dollars in thousands, except per share amounts)** | **May 2, 2026** | **May 3, 2025** |
| &nbsp;&nbsp;&nbsp;Net sales | $5529145 | $5033094 |
| &nbsp;&nbsp;&nbsp;Membership fee income | 132355 | 120389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 5661500 | 5153483 |
| &nbsp;&nbsp;&nbsp;Cost of sales | 4633599 | 4183984 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 806010 | 760880 |
| &nbsp;&nbsp;&nbsp;Pre-opening expenses | 13978 | 4974 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 207913 | 203645 |
| &nbsp;&nbsp;&nbsp;Interest expense, net | 12367 | 11099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes | 195546 | 192546 |
| &nbsp;&nbsp;&nbsp;Provision for income taxes | 52820 | 42778 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $142726 | $149768 |
| Weighted-average shares outstanding—basic | 128650 | 131569 |
| Basic EPS<sup>(a)</sup> | $1.11 | $1.14 |
| Weighted-average shares outstanding—diluted | 129383 | 132749 |
| Diluted EPS<sup>(a)</sup> | $1.10 | $1.13 |
| **Operational Data:** |  |  |
| &nbsp;&nbsp;&nbsp;Total clubs at end of period | 264 | 255 |
| &nbsp;&nbsp;&nbsp;Comparable club sales <sup>(b)</sup> | 6.3% | 1.6% |
| &nbsp;&nbsp;&nbsp;Merchandise comparable club sales <sup>(b)</sup> | 1.5% | 3.9% |
| &nbsp;&nbsp;&nbsp;Adjusted net income <sup>(b)</sup> | $142726 | $150875 |
| &nbsp;&nbsp;&nbsp;Adjusted EPS <sup>(b)</sup> | 1.10 | 1.14 |
| &nbsp;&nbsp;&nbsp;Adjusted EBITDA <sup>(b)</sup> | 298070 | 285836 |
| &nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 139958 | 208093 |
| &nbsp;&nbsp;&nbsp;Adjusted free cash flow <sup>(b)</sup> | (42046) | 67596 |

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(a) Basic and diluted EPS are calculated using net income.

(b) See "Non-GAAP Financial Measures" and "Liquidity and Capital Resources" within Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations for definitions.

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***Net Sales*** 

Net sales are derived from direct retail sales to our customers, net of merchandise returns and discounts. Fluctuations in net sales are impacted by opening new clubs and gas stations and comparable club sales.

Net sales for the first quarter of fiscal year 2026 were $5.53 billion, a 9.9% increase from net sales reported for the first quarter of fiscal year 2025 of $5.03 billion. The increase was due primarily to growth in the general merchandise and services division, as well as a net increase of nine clubs from the prior year period. Additionally, net sales were positively impacted by an increase in average retail price-per-gallon compared to the first quarter of fiscal year 2025, as well as an increase in comparable gallons sold.

***Comparable Club Sales and Merchandise Comparable Club Sales***

We believe net sales are an important driver of our profitability, particularly comparable club sales. Comparable club sales, a key performance indicator, also known as same-store sales in the retail industry, includes all clubs that were open for at least 13 months at the beginning of the period and were in operation during the entirety of both periods being compared, including relocated clubs and expansions. Comparable club sales allow us to evaluate how our club base is performing by measuring the change in period-over-period net sales in clubs that have been open for the applicable period.

Various factors affect comparable club sales, including customer preferences and trends, product sourcing, promotional offerings and pricing, shopping frequency from new and existing members and the amount they spend on each visit, weather, and holiday shopping period timing and length. Sales comparisons can be influenced by certain factors that are beyond our control such as changes in the cost of gasoline and macro-economic factors such as inflation. The higher comparable club sales, the more we can leverage certain of our selling, general and administrative ("SG&A") expenses, reducing them as a percentage of sales and enhancing profitability.

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| | |
|:---|:---|
| | **Thirteen Weeks Ended** |
| | **May 2, 2026** |
| Merchandise comparable club sales | 1.5% |
| Gasoline comparable sales | 4.8% |
| Comparable club sales | 6.3% |

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Merchandise comparable club sales represents comparable club sales from all merchandise other than our gasoline operations for the applicable period. Merchandise comparable club sales increased 1.5% in the first quarter of fiscal year 2026, compared to the first quarter of fiscal year 2025, driven by increased sales in the general merchandise and services division of 7.1% and the perishables, grocery, and sundries division of 0.7%.

General merchandise and services exhibited growth in the first quarter of fiscal year 2026 compared to the first quarter of fiscal year 2025 due to strength in consumer electronics, partially offset by headwinds in home and fashion.

In the perishables, grocery, and sundries division, growth was led by fresh meat and produce, as well as non-alcoholic beverage, nutrition, candy, and snack categories when compared to the first quarter of fiscal year 2025. First quarter growth was partially offset by deflation in perishables, especially eggs, as well as decreases in household cleaning and health and beauty categories.

The impact of gasoline sales is a result of an increase in retail prices year-over-year, as well as an increase in comparable gallons sold.

***Membership fee income*** 

Membership fee income was $132.4 million in the first quarter of fiscal year 2026 compared to $120.4 million in the first quarter of fiscal year 2025, a 9.9% increase. The increase was primarily driven by strength in membership acquisition, retention and higher-tier membership penetration across both new and existing clubs.

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***Cost of sales***

Cost of sales consists primarily of the direct cost of merchandise and gasoline sold at our clubs, including costs associated with operating our distribution centers, including payroll, payroll benefits, occupancy costs, and depreciation; freight expenses associated with moving merchandise from vendors to our distribution centers and from distribution centers to our clubs; and vendor allowances, rebates, and cash discounts.

Cost of sales was $4.63 billion, or 83.8% of net sales, in the first quarter of fiscal year 2026 compared to $4.18 billion, or 83.1% of net sales, in the first quarter of fiscal year 2025. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, decreased by approximately 10 basis points compared to the first quarter of fiscal year 2025, primarily driven by the Company's continued investments in pricing, partially offset by tariff refund benefits recognized in the quarter.

***Selling, general and administrative expenses*** 

SG&A consists of various expenses related to supporting and facilitating the sale of merchandise in our clubs, including the following: payroll and payroll benefits for team members; rent, depreciation, and other occupancy costs for retail and corporate locations; share-based compensation, advertising expenses; tender costs, including credit and debit card fees; amortization of intangible assets; and consulting, legal, insurance, restructuring charges, and other professional services expenses.

SG&A includes both fixed and variable components and, therefore, is not directly correlated with net sales. We expect that our SG&A will increase in future periods due to investments to drive comparable club sales growth and our expanding footprint as we open new clubs and distribution centers. In addition, any future increases in wages or stock-based grants or modifications will increase our SG&A.

SG&A increased by 5.9% to $806.0 million in the first quarter of fiscal year 2026 from $760.9 million in the first quarter of fiscal year 2025. The increase in SG&A was primarily driven by increased labor, occupancy, and operational costs mainly as a result of new club and gas station openings. Additionally, an increase in the number of owned clubs has resulted in increased depreciation expense year-over-year.

***Pre-opening expenses***

Pre-opening expenses include startup costs for new clubs and distribution centers and costs for relocated clubs. Expenses will vary based on the number of club openings, geography of the club, whether the club is owned or leased, and timing of the opening relative to our period end.

Pre-opening expenses were $14.0 million in the first quarter of fiscal year 2026 compared to $5.0 million in the first quarter of fiscal year 2025. Pre-opening expenses fluctuated due to timing of spend and the number of club openings year-over-year.

***Interest expense, net***

Interest expense, net was $12.4 million in the first quarter of fiscal year 2026 compared to $11.1 million in the first quarter of fiscal year 2025. The increase was primarily due to incremental interest expense on finance leases compared to the first quarter of fiscal year 2025, partially offset by a decrease in interest expense related to fluctuations in outstanding borrowings and interest rates year-over-year.

***Provision for income taxes*** 

The effective income tax rate was 27.0% and 22.2% for the first quarter of fiscal years 2026 and 2025, respectively. The increase in the effective income tax rate was primarily attributable to lower tax benefits from stock-based compensation compared to the prior year period.

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**Non-GAAP Financial Measures**

The accompanying condensed consolidated financial statements, including the related notes, are presented in accordance with GAAP. In addition to relevant GAAP measures we also provide non-GAAP measures, including adjusted net income, adjusted net income per diluted share ("adjusted EPS"), adjusted EBITDA, adjusted free cash flow, and other key performance indicators, including comparable club sales, because management believes these metrics are useful to investors and analysts by excluding items that we do not believe are indicative of our core operating performance. These measures are customary for our industry and commonly used by competitors. These non-GAAP financial measures should not be reviewed in isolation or considered as an alternative to any other performance measure derived in accordance with GAAP and should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. In addition, adjusted net income, adjusted EPS, adjusted EBITDA, adjusted free cash flow, and comparable club sales may not be comparable to similarly titled measures used by other companies in our industry or across different industries. See Results of Operations above for our comparable club sales and merchandise comparable club sales results. Adjusted free cash flow is discussed within the Liquidity and Capital Resources section below.

***Adjusted Net Income and Adjusted EPS***

The adjusted net income and adjusted EPS metrics are important measures used by management to compare the performance of core operating results between periods. We define adjusted net income as net income as reported, adjusted for non-recurring, infrequent, or unusual charges, including restructuring charges, and other adjustments that the Company believes appropriate, net of the tax impact of such adjustments. We define adjusted EPS as adjusted net income divided by the weighted-average diluted shares outstanding.

We believe adjusted net income and adjusted EPS are useful metrics to investors and analysts because they present more accurate year-over-year comparisons for our net income and net income per diluted share because adjusted items are not the result of our normal operations. We also use adjusted EPS in connection with establishing long-term incentive compensation.

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| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| **(in thousands, except per share amounts)** | **May 2, 2026** | **May 3, 2025** |
| **Net income as reported** | $142726 | $149768 |
| Adjustments: |  |  |
| Restructuring <sup>(a)</sup> |  | 1537 |
| Tax impact of adjustments to net income <sup>(b)</sup> |  | (430) |
| **Adjusted net income** | $142726 | $150875 |
| Weighted-average diluted shares outstanding | 129383 | 132749 |
| Adjusted EPS <sup>(c)</sup> | $1.10 | $1.14 |

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(a)Represents charges related to the restructuring of certain corporate and club functions, including costs for severance, retention, outplacement, consulting fees, and other third-party fees.

(b)Represents the tax effect of the above adjustments at a statutory tax rate of approximately 28%.

(c)Adjusted EPS is measured using weighted-average diluted shares outstanding.

***Adjusted EBITDA***

Adjusted EBITDA is defined as net income before interest expense, net, provision for income taxes, and depreciation and amortization, adjusted for the impact of certain other items, including stock-based compensation expense, restructuring, and other adjustments.

We believe that adjusted EBITDA is helpful in highlighting trends in our core operating performance compared to other measures, which can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital investments. We use adjusted EBITDA to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies; to make budgeting decisions; and to compare our performance against that of other peer companies using similar measures. We also use adjusted EBITDA in connection with establishing annual incentive compensation.

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The following is a reconciliation of our net income to adjusted EBITDA for the periods presented:

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| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| **(in thousands)** | **May 2, 2026** | **May 3, 2025** |
| **Net income** | $142726 | $149768 |
| Interest expense, net | 12367 | 11099 |
| Provision for income taxes | 52820 | 42778 |
| Depreciation and amortization | 76452 | 69665 |
| Stock-based compensation expense | 13280 | 10654 |
| Restructuring <sup>(a)</sup> |  | 1537 |
| Other adjustments <sup>(b)</sup> | 425 | 335 |
| **Adjusted EBITDA** | $298070 | $285836 |

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(a)&nbsp;&nbsp;&nbsp;&nbsp;Represents charges related to the restructuring of certain corporate and club functions, including costs for severance, retention, outplacement, consulting fees, and other third-party fees.

(b)&nbsp;&nbsp;&nbsp;&nbsp;Other non-cash items, including non-cash accretion on asset retirement obligations and obligations associated with our post-retirement medical plan.

**Liquidity and Capital Resources** 

Our primary sources of liquidity are cash flows generated from club operations and borrowings from our ABL Revolving Facility. As of May 2, 2026, cash and cash equivalents totaled $27.8 million and we had $816.2 million of unused capacity under our ABL Revolving Facility. Our principal liquidity needs for the next twelve months and beyond are to fund normal recurring operational expenses and anticipated capital expenditures, fund share repurchases, and meet debt service and principal repayment obligations. We believe that our current resources, together with anticipated cash flows from operations and borrowing capacity under our ABL Revolving Facility, will be sufficient to finance our operations for at least the next twelve months.

During the thirteen weeks ended May 2, 2026, we repurchased 2,114,000 shares under the 2024 Repurchase Program for a total purchase price of $206.6 million, inclusive of associated costs. We continue to prioritize disciplined capital allocation, balancing reinvestment in growth, and returns to shareholders through share repurchases.

We do not have any off-balance sheet arrangements that have, or are, in the opinion of management, reasonably likely to have, a current or future material effect on our results of operations or financial position. We do, however, enter into letters of credit and purchase obligations in the normal course of our operations.

***Summary of Cash Flows***

A summary of our cash flows from operating, investing and financing activities is presented in the following table:

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| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| **(in thousands)** | **May 2, 2026** | **May 3, 2025** |
| Net cash provided by operating activities | $139958 | $208093 |
| Net cash used in investing activities | (184634) | (142291) |
| Net cash provided by (used in) financing activities | 26257 | (54590) |
| Net (decrease) increase in cash and cash equivalents | $(18419) | $11212 |

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*Net Operating Cash Flows* 

Net cash provided by operating activities was $140.0 million for the thirteen weeks ended May 2, 2026 compared to $208.1 million for the thirteen weeks ended May 3, 2025. The decrease was primarily due to fluctuations in working capital including $91.0 million related to accounts receivable due to timing of vendor, customer, and other cash receipts, including tariff refunds; $54.7 million related to merchandise inventories, primarily driven by changes in inventory levels in our perishables and grocery divisions and gas inventory due primarily to increased cost per gallon; and $46.3 million related to

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prepaid expenses and other current assets, primarily driven by increases in income taxes receivable as a result of purchased tax credits. These negative working capital fluctuations were partially offset by $129.2 million related to accounts payable as a result of timing and volume of inventory purchases and vendor payments.

Our net cash from operating activities can fluctuate from period to period due to several factors, including: the timing and mix of sales, the timing and volume of inventory purchases as the Company prepares for holiday seasons, lease-related activity, income tax and other payments.

*Net Investing Cash Flows* 

Net cash used in investing activities was $184.6 million for the thirteen weeks ended May 2, 2026 compared to $142.3 million for the thirteen weeks ended May 3, 2025. This fluctuation is primarily driven by an increase in capital spending of $41.5 million as we continue to execute on our growth strategy through investment in new clubs in our pipeline, as well as strategic enhancements across our distribution network.

*Net Financing Cash Flows* 

Net cash provided by financing activities for the thirteen weeks ended May 2, 2026 was $26.3 million compared to $54.6 million used in financing activities for the thirteen weeks ended May 3, 2025. The increase in cash provided is primarily due to $255.0 million of net borrowings on our ABL Revolving Facility for the thirteen weeks ended May 2, 2026 compared to net payments of $25.0 million in the thirteen weeks ended May 3, 2025, partially offset by a $184.4 million increase in the acquisition of treasury stock compared to the prior year period.

***Adjusted Free Cash Flow***

We present adjusted free cash flow, a non-GAAP measure, because we believe it assists investors and analysts in evaluating our liquidity. Adjusted free cash flow should not be considered as an alternative to cash flows from operations as a liquidity measure. We define adjusted free cash flow as net cash provided by operating activities less additions to property and equipment, net of disposals, plus proceeds from sale-leaseback transactions.

The following is a reconciliation of our net cash provided by operating activities to adjusted free cash flow for the periods presented:

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| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| **(in thousands)** | **May 2, 2026** | **May 3, 2025** |
| Net cash provided by operating activities | $139958 | $208093 |
| Less: Additions to property and equipment, net of disposals | (182004) | (140497) |
| Plus: Proceeds from sale-leaseback transactions |  |  |
| Adjusted free cash flow | $(42046) | $67596 |

---

Adjusted free cash flow decreased $109.6 million during the first quarter of fiscal year 2026 compared to the first quarter of fiscal year 2025. The decrease is driven by a decrease in cash provided by operating activities, primarily due to unfavorable fluctuations in working capital, and an increase in capital spending.

***Debt and Borrowing Capacity*** 

Our primary source of borrowing capacity is the ABL Revolving Facility, which is further discussed in "<u>[Note 4](#i41e3704435554e12b2c6d315d0504aef_49)</u>. Debt and Credit Arrangements," included in this Quarterly Report on Form 10-Q.

On July 28, 2022, we entered into the ABL Revolving Facility with an aggregate ABL Revolving Commitment of $1.20 billion pursuant to that certain credit agreement with Bank of America, N.A., as administrative agent and collateral agent, and other lenders party thereto. The maturity date of the ABL Revolving Facility is July 28, 2027.

On November 4, 2024, we entered into the Fifth Amendment of the First Lien Term Loan with Nomura Corporate Funding Americas, LLC, as administrative agent and collateral agent, and the lenders party thereto.

The Fifth Amendment, among other things, provided for a new tranche of term loans in an aggregate principal amount of $400.0 million, which refinanced and replaced in full the existing Tranche B term loans outstanding under the First Lien Term

------

Loan Credit Agreement immediately prior to the effectiveness of the Fifth Amendment. In addition, the Fifth Amendment reduced applicable margin in respect of the interest rate from SOFR plus 200 basis points per annum to SOFR plus 175 basis points per annum. The maturity date of the First Lien Term Loan is February 3, 2029.

At May 2, 2026, there was $375.0 million outstanding in loans under the ABL Revolving Facility and $8.8 million in outstanding letters of credit. The interest rate on the revolving credit facility was 4.75% and unused capacity was $816.2 million.

At May 2, 2026, the interest rate for the First Lien Term Loan was 5.41% and there was $400.0 million outstanding.

***Material Cash Commitments*** 

Our material cash commitments consist primarily of debt obligations, interest payments, leases, and purchase orders for merchandise inventory, agreements for capital items, gasoline, products and services used in our business, information technology, executive employment, transferable tax credits, and other agreements. These material cash commitments impact our short-term and long-term liquidity and capital needs. As of May 2, 2026, other than a cash commitment of approximately $85 million, expected to be paid in the first quarter of fiscal year 2027, related to the purchase of transferable tax credits, and those items related to the ordinary course of operations of our business such as inventory purchases, agreements for capital items, and new leases and lease amendments, there were no material changes to our material cash commitments from those described in our Annual Report on Form 10-K for fiscal year 2025.

**Critical Accounting Policies and Use of Estimates** 

This discussion and analysis of our financial condition and results of operations is based on our condensed consolidated financial statements, which we have prepared in accordance with GAAP. The preparation of our financial statements and related disclosures requires us to make estimates, assumptions and judgments that affect the reported amount of assets, liabilities, revenue, costs and expenses, and related disclosures. There were no material changes in critical accounting policies and estimates during the period covered by this Quarterly Report on Form 10-Q. Refer to "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations— Critical Accounting Policies and Estimates," in our Annual Report on Form 10-K for fiscal year 2025 for a complete list of our Critical Accounting Policies and Estimates.

**Recent Accounting Pronouncements**

Our accounting policies are set forth in the audited financial statements included in the Company's Annual Report on Form 10-K for fiscal year 2025. There have been no material changes to these accounting policies and no accounting pronouncements adopted that had a material impact on the Company's financial statements aside from the adoption of ASU 2025-12, which impacts the accounting for treasury shares upon retirement.

Refer to "<u>[Note 2](#i41e3704435554e12b2c6d315d0504aef_40)</u>. Summary of Significant Accounting Policies" included in this Quarterly Report on Form 10-Q for additional information regarding recently issued and recently adopted accounting pronouncements.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk.** 

The primary market risk we are exposed to is interest rate risk and changes in rates will impact our net interest expense and our cash flow from operations. Substantially all of our borrowings carry variable interest rates, and we expect that some of our future outstanding debt will have variable interest rates. Accordingly, we seek to limit the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs and may use interest rate caps and/or swap agreements in the future to manage our interest rate risks relating to such variable rate debt. Increases in interest rates can result in increased interest expense under our variable rate debt as well as when any of our fixed rate debt matures and needs to be refinanced and an increase in interest rates could have a material impact on our cash flow.

As of May 2, 2026, our total debt outstanding was $775.0 million, which included $375.0 million under our ABL Revolving Facility and $400.0 million under our First Lien Term Loan at interest rates of 4.75% and 5.41%, respectively. See "<u>[Note 4](#i41e3704435554e12b2c6d315d0504aef_49)</u>. Debt and Credit Arrangements" of our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information. A 100 basis point change in prevailing market rates would cause annual interest costs to change by approximately $7.8 million.

------

**Item 4. Controls and Procedures.** 

***Limitations on Effectiveness of Controls and Procedures*** 

In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

***Evaluation of Disclosure Controls and Procedures*** 

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated, as of the end of the period covered by this Quarterly Report on Form 10-Q, the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of May 2, 2026.

***Changes in Internal Control***

There were no changes in our internal control over financial reporting identified in management's evaluation pursuant to Rules 13a-15 or 15d-15 of the Exchange Act during the most recently completed fiscal quarter that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

------

**PART II—OTHER INFORMATION**

**Item 1. Legal Proceedings.**

We are subject to various litigation, claims and other proceedings that arise from time to time in the ordinary course of business. We believe these actions are routine and incidental to the business. While the outcome of these actions cannot be predicted with certainty, we do not believe that any will have a material adverse impact on our business, financial condition or results of operations.

**Item 1A. Risk Factors.**

There have been no material changes to the risk factors relating to the Company set forth under the caption "Item 1A. Risk Factors" in our Annual Report on Form 10-K for fiscal year 2025.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

The following table sets forth information regarding our purchases of shares of our common stock during the first quarter of fiscal year 2026.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total Number of Shares**<br>**Purchased** <sup>(a)</sup> | **Average Price Paid per Share**<sup>(b)</sup> | **Total Number of Shares<br>Purchased as Part of Publicly<br>Announced Plans or<br>Programs** | **Approximate Dollar Value**<br>**of Shares that May Yet Be**<br>**Purchased Under the Plans or**<br>**Programs** <sup>(c)</sup><br>**(in thousands)** |
| February 1, 2026 to February 28, 2026 | 36606 | $95.80 |  | $749699 |
| March 1, 2026 to April 4, 2026 | 2106966 | 96.93 | 1922690 | 562910 |
| April 5, 2026 to May 2, 2026 | 191500 | 93.72 | 191310 | 544980 |
| **Total** | 2335072 |  | 2114000 |  |

---

(a)Includes 36,606 shares of common stock for the period February 1, 2026 to February 28, 2026, 184,276 shares of common stock for the period March 1, 2026 to April 4, 2026, and 190 shares of common stock for the period April 5, 2026 to May 2, 2026 surrendered to the Company by employees to satisfy their tax withholding obligations in connection with the vesting of restricted stock and performance stock awards. See "<u>[Note 7](#i41e3704435554e12b2c6d315d0504aef_61)</u>. Treasury Shares and Share Repurchase Programs" of our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information.

(b)Excludes the impact of excise tax imposed on share repurchases pursuant to the Inflation Reduction Act.

(c)On November 18, 2024, the Company's board of directors approved the 2024 Share Repurchase Program. The authorization allows the Company to repurchase up to $1.00 billion of its outstanding common stock and will expire in January 2029.

**Item 3. Defaults Upon Senior Securities.**

None.

**Item 4. Mine Safety Disclosures.**

Not applicable.

------

**Item 5. Other Information.** 

***10b5-1 Trading Plans*** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

None of our directors or "officers," as defined in Rule 16a-1(f) under the Securities Exchange Act of 1934, adopted or terminated a Rule 10b5-1 trading plan or arrangement or a non-Rule 10b5-1 trading plan or arrangement, as defined in Item 408(c) of Regulation S-K, during the fiscal quarter covered by this report.

**Item 6. Exhibits.**

---

| | |
|:---|:---|
| **Exhibit Number** | **Exhibit Description** |
| 10.1 | <u>[Amended and Restated Non-Employee Director Compensation Policy, effective as of March 3, 2026 (filed herewith).](exhibit101-arnonemployeedi.htm)</u> |
| 10.2 | <u>[Restricted Stock Unit Award Grant Notice and Restricted Stock Unit Award Agreement, effective as of April 1, 2026 (filed herewith).](exhibit102-2026rsuformawar.htm)</u> |
| 10.3 | <u>[Performance-Vesting Restricted Stock Unit Award Grant Notice and Performance-Vesting Restricted Stock Unit Award Agreement, effective as of April 1, 2026 (filed herewith).](exhibit103-2026psuformawar.htm)</u> |
| 31.1 | <u>[Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).](bj-20260502x10qex311.htm)</u> |
| 31.2 | <u>[Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).](bj-20260502x10qex312.htm)</u> |
| 32.1 | <u>[Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).](bj-20260502x10qex321.htm)</u> |
| 32.2 | <u>[Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).](bj-20260502x10qex322.htm)</u> |
| 101.INS | Inline XBRL Instance Document (filed herewith) |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document (filed herewith) |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith) |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document (filed herewith) |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document (filed herewith) |
| 101.PRE | Inline XBRL Taxonomy Extension Linkbase Document (filed herewith) |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.\*) (filed herewith) |

---

------

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **BJ'S WHOLESALE CLUB HOLDINGS, INC.** | **BJ'S WHOLESALE CLUB HOLDINGS, INC.** |
| Date: May 28, 2026 | By: | /s/ Laura L. Felice |
|  |  | Laura L. Felice |
|  |  | Executive Vice President, Chief Financial Officer <br>(Principal Financial Officer and <br>Authorized Signatory) |

---

## Exhibit 10.1

**BJ'S WHOLESALE CLUB HOLDINGS, INC.** 

**AMENDED AND RESTATED<br>NON-EMPLOYEE DIRECTOR COMPENSATION POLICY**

**(Effective: March 3, 2026)**

Non-employee members of the board of directors (the "***Board***") of BJ's Wholesale Club Holdings, Inc. (the "***Company***") shall be eligible to receive cash and equity compensation as set forth in this Non-Employee Director Compensation Policy (this "***Policy***"). The cash and equity compensation described in this Policy shall be paid or be made, as applicable, automatically and without further action of the Board, to each member of the Board who is not an employee of the Company or any parent or subsidiary of the Company (each, a "***Non-Employee Director***"), who may be eligible to receive such cash or equity compensation, unless such Non-Employee Director declines the receipt of such cash or equity compensation by written notice to the Company. This Policy shall become effective after the effectiveness of the Company's initial public offering (the "***IPO***") and shall remain in effect until it is revised or rescinded by further action of the Board. This Policy may be amended, modified or terminated by the Board at any time in its sole discretion. The terms and conditions of this Policy shall supersede any prior cash and/or equity compensation arrangements for service as a member of the Board between the Company and any of its Non-Employee Directors and between any subsidiary of the Company and any of its non-employee directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Cash Compensation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Annual Retainers</u>. Each Non-Employee Director shall receive an annual retainer of $100,000 for service on the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Annual Retainers</u>. In addition, a Non-Employee Director shall receive the following annual retainers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(i)</u><u>Lead Independent Director of the Board</u>. A Non-Employee Director serving as Lead Independent Director of the Board shall receive an additional annual retainer of $60,000 for such service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(ii)</u><u>Audit Committee</u>. A Non-Employee Director serving as Chairperson of the Audit Committee shall receive an additional annual retainer of $40,000 for such service. A Non-Employee Director serving as a member of the Audit Committee (other than the Chairperson) shall receive an additional annual retainer of $17,500 for such service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(iii)</u><u>Compensation Committee</u>. A Non-Employee Director serving as Chairperson of the Compensation Committee shall receive an additional annual retainer of $35,000 for such service. A Non-Employee Director serving as a member of the Compensation Committee (other than the Chairperson) shall receive an additional annual retainer of $15,000 for such service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;<u>Nominating and Corporate Governance Committee</u>. A Non-Employee Director serving as Chairperson of the Nominating and Corporate Governance Committee shall receive an additional annual retainer of $25,000 for such service. A Non-Employee Director serving as a member of the Nominating and Corporate Governance Committee (other than the Chairperson) shall receive an additional annual retainer of $10,000 for such service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Retainers</u>. The annual retainers described in Sections 1(a) and 1(b) shall be earned on a quarterly basis based on a calendar quarter and shall be paid by the Company in arrears not later than the fifteenth day following the end of each calendar quarter. In the event a Non-Employee Director does not serve as a Non-Employee Director, or in the applicable positions described in Section 1(b), for an entire calendar quarter, such Non-Employee Director shall receive a prorated portion

------

of the retainer(s) otherwise payable to such Non-Employee Director for such calendar quarter pursuant to Sections 1(a) and 1(b), with such prorated portion determined by multiplying such otherwise payable retainer(s) by a fraction, the numerator of which is the number of days during which the Non-Employee Director serves as a Non-Employee Director or in the applicable positions described in Section 1(b) during the applicable calendar quarter and the denominator of which is the number of days in the applicable calendar quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Equity Compensation</u>. Non-Employee Directors shall be granted the equity awards described below. The awards described below shall be granted under and shall be subject to the terms and provisions of the Company's 2018 Incentive Award Plan or any other applicable Company equity incentive plan then-maintained by the Company (such plan, as may be amended from time to time the "***Equity Plan***") and shall be granted subject to the execution and delivery of award agreements, including attached exhibits, in substantially the forms previously approved by the Board. All applicable terms of the Equity Plan apply to this Policy as if fully set forth herein, and all equity grants hereunder are subject in all respects to the terms of the Equity Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(a)</u><u>Annual Awards</u>. Each Non-Employee Director who (i) serves on the Board as of the date of any annual meeting of the Company's stockholders (an "***Annual Meeting***") after the Pricing Date and (ii) will continue to serve as a Non-Employee Director immediately following such Annual Meeting shall be automatically granted, on the date of such Annual Meeting, restricted stock units that have an aggregate fair value on the date of grant of $195,000 (as determined in accordance with ASC 718 and subject to adjustment as provided in the Equity Plan). The awards described in this Section 2(a) shall be referred to as the "***Annual Awards***." For the avoidance of doubt, a Non-Employee Director elected for the first time to the Board at an Annual Meeting shall receive only an Annual Award in connection with such election, and shall not receive any Initial Award on the date of such Annual Meeting as well.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b)</u><u>Initial Awards</u>. Except as otherwise determined by the Board, each Non-Employee Director who is initially elected or appointed to the Board after the Pricing Date on any date other than the date of an Annual Meeting shall be automatically granted, on the date of such Non-Employee Director's initial election or appointment (such Non-Employee Director's "Start Date"), restricted stock units that have an aggregate fair value on such Non-Employee Director's Start Date equal to the product of (i) $180,000 (as determined in accordance with ASC 718 and subject to adjustment as provided in the Equity Plan) and (ii) a fraction, the numerator of which is (x) 365 minus (y) the number of days in the period beginning on the date of the Annual Meeting immediately preceding such Non-Employee Director's Start Date (or, if no such Annual Meeting has occurred, the effective date of the Company's IPO) and ending on such Non-Employee Director's Start Date and the denominator of which is 365 (with the number of shares of common stock underlying each such award subject to adjustment as provided in the Equity Plan). The awards described in this Section shall be referred to as "***Initial Awards***." For the avoidance of doubt, no Non-Employee Director shall be granted more than one Initial Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(c)</u><u>Deferral of Awards</u>. Notwithstanding the foregoing, each Non-Employee Director may elect to defer the grant of an Annual Award or Initial Award, subject to compliance with Section 409A of the Internal Revenue Code of 1986, as amended. The Board may also determine, in its sole discretion that an Annual Award for a Non-Employee Director be granted in the form of deferred stock or shares of common stock with equivalent value on the date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(d)</u><u>Termination of Employment of Employee Directors</u>. Members of the Board who are employees of the Company or any parent or subsidiary of the Company who subsequently terminate their employment with the Company and any parent or subsidiary of the Company and remain on the Board will not receive an Initial Award pursuant to Section 2(b) above, but to the extent that they are otherwise eligible, will be eligible to receive, after termination from employment with the Company and any parent or subsidiary of the Company, Annual Awards as described in Section 2(a) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Vesting of Awards Granted to Non-Employee Directors</u>. Each Annual Award and

------

Initial Award shall vest and become exercisable on the earlier of (i) the day immediately preceding the date of the first Annual Meeting following the date of grant and (ii) the first anniversary of the date of grant, subject to the Non-Employee Director continuing in service on the Board through the applicable vesting date. No portion of an Annual Award or Initial Award that is unvested or unexercisable at the time of a Non-Employee Director's termination of service on the Board shall become vested and exercisable thereafter. In the event that a Non-Employee Director incurs a Termination of Service upon or within twelve months following a Change in Control (as such terms are defined in the Equity Plan), each of the Non-Employee Director's outstanding Initial Awards and Annual Awards shall accelerate and vest in full.

\* \* \* \* \*

## Exhibit 10.2

**BJ'S WHOLESALE CLUB HOLDINGS, INC.<br>2018 INCENTIVE AWARD PLAN<br>RESTRICTED STOCK UNIT AWARD GRANT NOTICE AND**

**RESTRICTED STOCK UNIT AWARD AGREEMENT**

**(CEO, EVPs, SVPs, VPs)**

BJ's Wholesale Club Holdings, Inc., a Delaware corporation (the "<u>Company</u>"), pursuant to its 2018 Incentive Award Plan, as amended from time to time (the "<u>Plan</u>"), hereby grants to the holder listed below ("<u>Participant</u>") the number of restricted stock units (the "<u>RSUs</u>") set forth below (the "<u>Award</u>"). The RSUs are subject to the terms and conditions set forth in this Restricted Stock Unit Award Grant Notice (the "<u>Grant Notice</u>"), the Plan and the Restricted Stock Unit Award Agreement attached hereto as <u>Exhibit A</u> (the "<u>Agreement</u>"), each of which is incorporated into this Grant Notice by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the Agreement.

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| | |
|:---|:---|
| **Participant:** | NAME  |
| **Grant Date:** | April ##, [____] |
| **Number of RSUs:** | $[____] |
| **Vesting Criteria:** | Subject to the Participant's continued status as an Employee, the RSUs shall vest with respect to the RSUs shall vest with respect to 1/3<sup>rd</sup> of the Shares subject thereto (rounded down to the next whole number of Shares) on each of the first, second and third anniversaries of the Grant Date such that the RSUs shall be fully vested on the third anniversary of the Grant Date. In the event of the Participant's Termination of Service due to death or Disability, any unvested RSUs shall fully vest as of the Cessation Date. In the event of the Participant's Termination of Service due to Retirement, any unvested RSUs shall vest in accordance with the terms herein. |
| **Issuance Schedule:** | The Shares will be issued (to the extent any portion of the RSUs is earned and becomes vested in accordance with the Vesting Criteria above) in accordance with Section 2.4 of the Agreement. |

---

By Participant's acceptance of award, Participant agrees to be bound by the terms and conditions of the Plan, the Agreement and the Grant Notice. Participant has reviewed the Plan, the Agreement and the Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing the Grant Notice and fully understands all provisions of the Plan, the Agreement and the Grant Notice. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan, the Agreement and the Grant Notice. In accepting the RSUs, the Participant acknowledges, understands and agrees that the RSUs, as well as all other RSUs previously granted to the Participant, whether vested or exercised (as applicable), shall be subject to the terms and conditions of the Company's Policy for Recoupment of Incentive Compensation, to the extent applicable.

------

**<u>EXHIBIT A</u>**

**<u>TO RESTRICTED STOCK UNIT AWARD GRANT NOTICE</u><br>RESTRICTED STOCK UNIT AWARD AGREEMENT**

Pursuant to the Grant Notice to which this Agreement is attached, the Company has granted to Participant the number of RSUs set forth in the Grant Notice.

**ARTICLE I.<br>GENERAL**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1<u>Defined Terms</u>. Capitalized terms not specifically defined herein shall have the meanings specified in the Plan or the Grant Notice. For purposes of this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)"<u>Cause</u>" shall mean a Company Group Member having "Cause" to terminate Participant's employment or services, as such term is defined in any relevant employment agreement between Participant and a Company Group Member; *provided* that, in the absence of such agreement containing such definition, a Company Group Member shall have "Cause" to terminate Participant's employment or services upon: (i) Participant's failure to substantially perform the Participant's duties as reasonably determined by the Board (other than as a result of the Participant's Disability); (ii) materially dishonest statements or acts by the Participant with respect to the Company Group or any of its Affiliates; (iii) Participant's commission of an act constituting a felony under the laws of the United States or any state thereof; (iv) Participant's gross negligence, willful misconduct or insubordination with respect to the Company Group or any of its Affiliates; or (v) any other act or omission by the Participant which is materially injurious to the financial condition or business reputation of the Company Group or any of its Affiliates. Whether or not an event giving rise to "Cause" occurs will be determined by the Board in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)"<u>Cessation Date</u>" shall mean the date of Participant's Termination of Service (regardless of the reason for such termination).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)"<u>Company Group</u>" shall mean the Company and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)"<u>Company Group Member</u>" shall mean each member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)"<u>Disability</u>" shall have the meaning ascribed to such term in any relevant employment agreement between Participant and a Company Group Member; *provided* that, in the absence of such agreement containing such definition, "Disability" shall mean permanent disability or incapacity as determined in accordance with the Company's disability insurance policy, if such a policy is then in effect, or if no such policy is then in effect, such permanent disability or incapacity shall be determined by the Board in its good faith judgment based upon inability to perform the essential functions of his or her position, with reasonable accommodation by the Company, for a period in excess of 180 days during any period of 365 calendar days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)"<u>Retirement</u>" shall mean the Participant has: (i) attained age 55 and completed at least 10 years of continued status as an Employee, based on the Adjusted Service Date as defined in the Company's Adjusted Service Dates Policy; and (ii) provided advance written notice of his or her intention to retire at least 6 months in advance of such intended Retirement. The Committee may, in its sole discretion, waive the requirements of (i) or (ii) of this paragraph, in whole or in part, for hardship and/or grant additional vesting, accelerate vesting, or modify payout timing for any RSU award issued under this Agreement. If a Participant is terminated without Cause after satisfying (i) of this paragraph, the requirements of (i) and (ii) of this paragraph will be deemed automatically satisfied as of the Cessation Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2<u>Incorporation of Terms of Plan</u>. The RSUs are subject to the terms and conditions set forth in this Agreement and the Plan, each of which is incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control.

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**ARTICLE II.<br>AWARD OF RSUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1<u>Award of RSUs</u>. In consideration of Participant's past and/or continued employment with or service to any Company Group Member and for other good and valuable consideration, effective as of the grant date set forth in the Grant Notice (the "<u>Grant Date</u>"), the Company has granted to Participant the number of RSUs set forth in the Grant Notice, upon the terms and conditions set forth in the Grant Notice, the Plan and this Agreement, subject to adjustment as provided each of the foregoing. Each RSU represents the right to receive one Share or, at the option of the Company, an amount of cash as set forth in Section 2.3(c), in either case, at the times and subject to the conditions set forth herein. However, unless and until the RSUs have vested, Participant will have no right to the payment of any Shares subject thereto. Prior to the actual delivery of any Shares, the RSUs will represent an unsecured obligation of the Company, payable only from the general assets of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2<u>Vesting of RSUs</u>. The RSUs shall vest in accordance with terms set forth in the Grant Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3<u>Effect of Retirement</u>. In the event of Retirement, any unvested RSUs shall automatically fully vest as of the Cessation Date. Notwithstanding anything in the Agreement to the contrary, if the Cessation Date is within 6 months of the Grant Date, then any unvested RSUs shall vest on a pro rata basis, calculated as: a \* (b/c), rounded down to the nearest whole Share. Where: a = the total number of unvested RSUs; b = the total number of calendar days from and including the Grant Date through and including the Cessation Date; c = the total number of calendar days from and including the Grant Date through and including the third anniversary of the Grant Date. Such prorated RSUs will be delivered on each of the first, second, and third anniversaries of the Grant Date such that the RSUs shall be fully delivered on the third anniversary of the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4<u>Tax Withholding</u>. Notwithstanding any other provision of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Company Group has the authority to deduct or withhold, or require Participant to remit to the applicable Company Group Member, an amount sufficient to satisfy any applicable federal, state, local and foreign taxes (including the employee portion of any FICA obligation) required by Applicable Law to be withheld with respect to any taxable event arising pursuant to this Agreement. The Company Group may withhold or Participant may make such payment in one or more of the forms specified below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)by cash or check made payable to the Company Group Member with respect to which the withholding obligation arises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)by the deduction of such amount from other compensation payable to Participant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)with the consent of the Administrator, by requesting that the Company withhold a net number of Shares subject to the Award having a then current Fair Market Value not exceeding the amount necessary to satisfy the withholding obligation of the Company Group based on the maximum statutory withholding rates in Participant's applicable jurisdictions for federal, state, local and foreign income tax and payroll tax purposes that are applicable to such taxable income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)with the consent of the Administrator, by tendering to the Company vested Shares held for such period of time as may be required by the Administrator in order to avoid adverse accounting consequences and having a then current Fair Market Value not exceeding the amount necessary to satisfy the withholding obligation of the Company Group based on the maximum statutory withholding rates in Participant's applicable jurisdictions for federal, state, local and foreign income tax and payroll tax purposes that are applicable to such taxable income; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)in any combination of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)With respect to any withholding taxes arising in connection with the Award, in the event Participant fails to provide timely payment of all sums required pursuant to Section 2.3(a), the Company shall have the right and option, but not the obligation, to treat such failure as an election by Participant to satisfy all or any portion of Participant's required payment obligation pursuant to Section 2.3(a)(ii) or Section 2.3(a)(iii) above, or any combination of the foregoing as the Company may determine to be appropriate. The Company shall not be obligated to deliver any Shares to Participant or his or her legal representative unless and until Participant or his or her legal representative shall have paid or otherwise satisfied in full the amount of all federal, state, local and foreign

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taxes applicable with respect to the taxable income of Participant resulting from the vesting of RSUs hereunder or any other taxable event with respect to the RSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)In the event any tax withholding obligation arising in connection with the Award will be satisfied under Section 2.3(a)(iii) above, then the Company may elect to instruct any brokerage firm determined acceptable to the Company for such purpose to sell on Participant's behalf a whole number of Shares from those Shares that are subject to the Award as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy the tax withholding obligation and to remit the proceeds of such sale to the Company Group Member with respect to which the withholding obligation arises. Participant's acceptance of this Award constitutes Participant's instruction and authorization to the Company and such brokerage firm to complete the transactions described in this Section 2.3(c), including the transactions described in the previous sentence, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Participant is ultimately liable and responsible for, and, to the extent permitted by Applicable Law, agrees to indemnify and keep indemnified the Company Group from, all taxes owed in connection with the Award, regardless of any action any Company Group Member takes with respect to any tax withholding obligations that arise in connection with the Award. No Company Group Member makes any representation or undertaking regarding the treatment of any tax withholding in connection with the awarding or vesting of the Award or the subsequent sale of Shares. The Company Group does not commit and is under no obligation to structure the Award to reduce or eliminate Participant's tax liability

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5<u>Distribution or Payment of RSUs; Dividend Equivalents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Participant's RSUs shall be distributed in Shares (either in book-entry form or otherwise) or, at the option of the Company, paid in an amount of cash as set forth in Section 2.3(c), in either case, as soon as administratively practicable following the vesting of the applicable RSU pursuant to Section 2.2, and, in any event, within sixty (60) days following such vesting (for the avoidance of doubt, this deadline is intended to comply with the "short-term deferral" exemption from Section 409A of the Code). Notwithstanding the foregoing, the distribution or payment in settlement of RSUs may be delayed if (i) such payment or distribution is subject to a deferral election made in accordance with Section 409A and applicable Company policy or (ii) such payment or distribution will violate Federal securities laws or any other Applicable Law, provided in such case that such distribution or payment shall be made at the earliest date at which the Company reasonably determines that the making of such distribution or payment will not cause such violation, as required by Treasury Regulation Section 1.409A-2(b)(7)(ii), and provided further that no payment or distribution shall be delayed under this Section 2.3(a) if such delay will result in a violation of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Unless the distribution or payment in settlement of the RSUs is subject to a deferral election made in accordance with Section 409A, reasonably promptly (but, in all events, no later than 30 days) after the applicable vesting date, the Company will pay to the Participant in cash, an amount of dividend equivalents equal to the aggregate dividends that would have been paid with respect to the RSUs on or before the date the Shares had been issued (the "<u>Settlement Date</u>") following the vesting of the RSUs. With respect to dividends with a record date prior to the Settlement Date and a payment date after the Settlement Date, the Company will pay the Participant, in cash, on the respective payment dates for such dividends, an amount of dividend equivalents equal to the amount of such dividends that would have been paid with respect to the vested RSUs if such vested RSUs had been issued as Shares prior to the record date for such dividends. However, if the distribution or payment in settlement of the RSUs is delayed in accordance with Section 409A, the payments contemplated in the two preceding sentences shall instead be paid in accordance with the requirements of Section 409A and applicable Company policy. The issuance of the Shares and payment of dividend equivalents is intended to comply with the requirements for a "short term deferral" under Section 409A of the Code absent a deferral election made in accordance with Section 409A and applicable Company policy and this Agreement and the RSUs will be construed and administered to comply with such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Conditions to Issuance of Certificates</u>. The Company shall not be required to issue or deliver any certificate or certificates for any Shares or to cause any Shares to be held in book-entry form prior to the fulfillment of all of the following conditions: (A) the admission of the Shares to listing on all stock exchanges on which such Shares are then listed, (B) the completion of any registration or other qualification of the Shares under any state or federal law or under rulings or regulations of the Securities and Exchange Commission or other governmental regulatory body, which the Administrator shall, in its absolute discretion, deem necessary or advisable, and (C) the obtaining of any approval or other clearance from any state or federal governmental agency that the Administrator shall, in its absolute discretion, determine to be necessary or advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6<u>Restrictions</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>RSUs Not Transferable</u>. The RSUs may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution, unless and until the Shares underlying the RSUs have been issued, and all restrictions applicable to such Shares have lapsed. No RSUs or any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of Participant or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence. Notwithstanding the foregoing, with the consent of the Administrator, the RSUs may be transferred to certain persons or entities related to the Participant, including but not limited to members of Participant's family, charitable institutions or trusts or other entities whose beneficiaries or beneficial owners are members of Participant's family or to such other persons or entities as may be expressly approved by the Administrator, pursuant to any such conditions and procedures the Administrator may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7<u>No Rights as a Stockholder</u>. The Participant's interest in the RSUs will not entitle the Participant to any rights as a stockholder of the Company. The Participant will not be deemed to be the holder of, or have any of the rights and privileges of a stockholder of the Company in respect of, the Shares unless and until such Shares have been issued to the Participant in accordance with Section 2.4.

**ARTICLE III.<br>RESTRICTIVE COVENANTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1<u>Obligation to Maintain Confidentiality</u>. Participant acknowledges that the confidential or proprietary information and data (including trade secrets) of the Company Group and any of its Affiliates obtained by Participant while employed by or in the service of the Company Group or any of its Affiliates (including, without limitation, prior to the date of this Agreement) ("<u>Confidential Information</u>") are the property of the Company Group and/or its Affiliates, including information concerning acquisition opportunities in or reasonably related to the Company Group's or any of its Affiliates' business or industry of which Participant becomes aware during the period of Participant's employment or service. Therefore, Participant agrees that he or she will not disclose to any unauthorized person, group or entity or use for Participant's own account any Confidential Information without the Company's written consent, unless and to the extent that the Confidential Information, (a) becomes generally known to and available for use by the public other than as a result of Participant's acts or omissions to act, (b) was known to Participant prior to Participant's employment or service with the Company Group or any of its Affiliates, or (c) is required to be disclosed pursuant to any applicable law or court order. Participant shall use reasonable best efforts to deliver to the Company on his or her Cessation Date, or at any other time the Company may request, all memoranda, notes, plans, records, reports, computer tapes, printouts and software and other documents and data (and copies thereof) relating to the Confidential Information, Work Product (as defined below) or the business of the Company Group and any of its Affiliates (including, without limitation, all acquisition prospects, lists and contact information) which Participant may then possess or have under his or her control, but excluding financial information of the Company relating to Participant's ownership of shares of Common Stock, which information will nonetheless continue to constitute Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2<u>Ownership of Property</u>. Participant acknowledges that all discoveries, concepts, ideas, inventions, innovations, improvements, developments, methods, processes, programs, designs, analyses, drawings, reports, patent applications, copyrightable work and mask work (whether or not including any Confidential Information) and all registrations or applications related thereto, all other proprietary information and all similar or related information (whether or not patentable) that relate to the Company Group or any of its Affiliates actual or anticipated business, research and development, or existing or future products or services and that were or are conceived, developed, contributed to, made, or reduced to practice by Participant (either solely or jointly with others) while employed by or in the service of the Company Group or any of its Affiliates (including, without limitation, prior to the date of this Agreement) (including any of the foregoing that constitutes any proprietary information or records) ("<u>Work Product</u>") belong to the Company Group and its Affiliates and Participant hereby assigns, and agrees to assign, all of the above Work Product to the Company Group and its Affiliates. Any copyrightable work prepared in whole or in part by Participant in the course of Participant's work for any of the foregoing entities shall be deemed a "work made for hire" under the copyright laws, and the Company Group and its Affiliates shall own all rights therein. To the extent that any such copyrightable work is not a "work made for hire," Participant hereby assigns and agrees to assign to the Company Group and its Affiliates all right, title, and interest, including without limitation, copyright in and to such copyrightable work. Participant shall as promptly as practicable under the circumstances disclose such Work Product and copyrightable work to the Company and perform all actions reasonably requested by the Company (whether during or after Participant's employment with or service to the Company Group and its

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Affiliates) to establish and confirm the Company Group's or its Affiliates' ownership (including, without limitation, assignments, consents, powers of attorney, and other instruments).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3<u>Third Party Information</u>. Participant understands that the Company Group and its Affiliates will receive from third parties confidential or proprietary information ("<u>Third Party Information</u>") subject to a duty on the Company Group and Affiliates part to maintain the confidentiality of such information and to use it only for certain limited purposes. During the period of Participant's employment with or service to the Company Group or any of its Affiliates and thereafter, and without in any way limiting the provisions of Section 3.1 above, Participant will hold Third Party Information in the strictest confidence and will not disclose to anyone (other than personnel and consultants of the Company Group or its Affiliates who need to know such information in connection with their work for the Company Group or its Affiliates) or use, except in connection with Participant's work for the Company Group or any of its Affiliates, Third Party Information unless expressly authorized by the Company in writing or unless and to the extent that the Third Party Information, (a) becomes generally known to and available for use by the public other than as a result of Participant's acts or omissions to act, (b) was known to Participant prior to Participant's employment with or service to the Company Group and any of its Affiliates, or (c) is required to be disclosed pursuant to any applicable law or court order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4<u>Use of Information of Prior Employers</u>. During Participant's employment with and/or services, Participant will not improperly use or disclose any confidential information or trade secrets, if any, of any former employers or any other person to whom Participant has an obligation of confidentiality, and will not bring onto the premises of the Company Group or any of its Affiliates any unpublished documents or any property belonging to any former employer or any other person to whom Participant has an obligation of confidentiality unless consented to in writing by the former employer or person. Participant will use in the performance of Participant's duties only information which is (a)(i) common knowledge in the industry or (ii) otherwise legally in the public domain, (b) otherwise provided or developed by the Company Group or its Affiliates or (c) in the case of materials, property or information belonging to any former employer or other person to whom Participant has an obligation of confidentiality, approved for such use in writing by such former employer or person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5<u>Nonsolicitation and Non-hire</u>. Participant acknowledges that, in the course of Participant's employment and/or services, Participant will become familiar with the Company Group's and its Affiliates' trade secrets and with other confidential information concerning the Company Group and its Affiliates and that Participant's services will be of special, unique and extraordinary value to the Company Group and its Affiliates. Therefore, Participant agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Restriction</u>. While employed or engaged by the Company Group or any of its Affiliates, and for a period beginning on the Participant's Cessation Date and ending on the second anniversary of such Cessation Date, Participant shall not directly or indirectly through another entity (i) induce or attempt to induce any employee of the Company Group or any of its Affiliates to leave the employ of the Company Group or any of its Affiliates, or in any way interfere with the relationship between the Company Group or any of its Affiliates and any employee thereof, and (ii) hire any person who was an employee of the Company Group or any of its Affiliates within 180 days prior to the time such employee was hired by Participant, (iii) induce or attempt to induce any customer, supplier, licensee or other business relation of the Company Group or any of its Affiliates to cease doing business with the Company Group and its Affiliates or in any way interfere with the relationship between any such customer, supplier, licensee or business relation and the Company Group and its Affiliates or (iv) directly or indirectly acquire or attempt to acquire an interest in any business relating to the business of the Company Group or its Affiliates and with which the Company Group or its Affiliates has entered into substantive negotiations or has requested and received confidential information relating to the acquisition of such business by the Company Group or any of its Affiliates in the two-year period immediately preceding Participant's Termination of Services with the Company Group and its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Enforcement</u>. If, at the time of enforcement of Section 3.5(a), a court holds that the restrictions stated herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum duration, scope or geographical area reasonable under such circumstances shall be substituted for the stated period, scope or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum duration, scope and area permitted by law. Participant agrees that because his or her services are unique and Participant has access to confidential information, money damages would be an inadequate remedy for any breach of this Article 3. Participant agrees that the Company Group or any of its Affiliates in the event of a breach or threatened breach of this Article 3, may seek injunctive or other equitable relief in addition to any other remedy available to them in a court of competent jurisdiction without posting bond or other security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Non-disparagement</u>. Participant agrees that at no time during his employment or engagement by the Company Group and its Affiliates or thereafter, shall he or she make, or cause or assist any other person to make, any statement or other communication to any third party which impugns or attacks, or is otherwise

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critical of, in any material respect, the reputation, business or character of the Company Group or any of its Affiliates or any of their respective directors, officers or employees; *provided* that Participant shall not be required to make any untruthful statement or to violate any law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6<u>Acknowledgments</u>. Participant acknowledges that the provisions of this Article 3 are (a) in addition to, and not in limitation of, any obligation of Participant's under the terms of any employment agreement with the Company Group or any of its Affiliates, (b) in consideration of (i) employment with or engagement by the Company Group or any of its Affiliates, (ii) the issuance of the RSUs by the Company and (iii) additional good and valuable consideration as set forth in this Agreement. In addition, Participant agrees and acknowledges that the restrictions contained in Article 3 do not preclude Participant from earning a livelihood, nor do they unreasonably impose limitations on Participant's ability to earn a living. Participant agrees and acknowledges that the potential harm to the Company Group or any of its Affiliates of the non-enforcement of this Article 3 outweighs any potential harm to Participant of its enforcement by injunction or otherwise. Participant acknowledges that he or she has carefully read this Agreement and has given careful consideration to the restraints imposed upon Participant by this Agreement, and is in full accord as to their necessity for the reasonable and proper protection of confidential and proprietary information of the Company Group and its Affiliates now existing or to be developed in the future. Participant expressly acknowledges and agrees that each and every restraint imposed by this Agreement is reasonable with respect to subject matter, time period and geographical area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7<u>Response to Subpoena; Whistleblower Protection</u>. Participant may respond to a lawful and valid subpoena or other legal process but shall give the Company Group the earliest possible notice thereof, and shall, as much in advance of the return date as possible, make available to the Company Group and its counsel the documents and other information sought, and shall assist such counsel in resisting or otherwise responding to such process. Notwithstanding anything to the contrary contained herein, no provision of this Agreement shall be interpreted so as to impede Participant (or any other individual) from reporting possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General, or making other disclosures under the whistleblower provisions of federal law or regulation. Participant does not need the prior authorization of the Company Group to make any such reports or disclosures and Participant shall not be not required to notify the Company Group that such reports or disclosures have been made.

**ARTICLE IV.<br>OTHER PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1<u>Administration</u>. The Administrator shall have the power to interpret the Plan, the Grant Notice and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan, the Grant Notice and this Agreement as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Administrator will be final and binding upon Participant, the Company and all other interested persons. To the extent allowable pursuant to Applicable Law, no member of the Committee or the Board will be personally liable for any action, determination or interpretation made with respect to the Plan, the Grant Notice or this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2<u>Adjustments</u>. The Administrator may accelerate the vesting of all or a portion of the RSUs in such circumstances as it, in its sole discretion, may determine. Participant acknowledges that the RSUs are subject to adjustment, modification and termination in certain events as provided in this Agreement and the Plan, including Section 12.2 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3<u>Notices</u>. Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company at the Company's principal office, and any notice to be given to Participant shall be addressed to Participant at Participant's last address reflected on the Company's records. By a notice given pursuant to this Section 4.3, either party may hereafter designate a different address for notices to be given to that party. Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4<u>Data Privacy Consent</u>. In order to administer the Plan and this Agreement and to implement or structure future equity grants, the Company and its agents may process any and all personal or professional data, including but not limited to Social Security or other identification number, home address and telephone number, date of birth and other information that is necessary or desirable for the administration of the Plan and/or this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5<u>Titles</u>. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6<u>Governing Law</u>. The laws of the State of Delaware shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7<u>Conformity to Securities Laws</u>. Participant acknowledges that the Plan, the Grant Notice and this Agreement are intended to conform to the extent necessary with all Applicable Laws, including, without limitation, the provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated thereunder by the Securities and Exchange Commission and state securities laws and regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Award is granted, only in such a manner as to conform to Applicable Law. To the extent permitted by Applicable Law, the Plan, the Grant Notice and this Agreement shall be deemed amended to the extent necessary to conform to Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8<u>Amendment, Suspension and Termination</u>. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Administrator or the Board, <u>provided</u> that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the Award in any material way without the prior written consent of Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9<u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth in Section 2.5(b) and the Plan, this Agreement shall be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10<u>Limitations Applicable to Section 16 Persons</u>. Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the Award, the Grant Notice and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by Applicable Law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11<u>Not a Contract of Employment</u>. Nothing in this Agreement or in the Plan shall confer upon Participant any right to continue to serve as an employee or other service provider of any Company Group Member or shall interfere with or restrict in any way the rights of the Company Group, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between a Company Group Member and Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12<u>Entire Agreement</u>. The Plan, the Grant Notice and this Agreement (including any exhibit or appendix hereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13<u>Section 409A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Unless the settlement is subject to a deferral election made in accordance with Section 409A and applicable Company policy, the RSUs granted hereunder are not intended to provide for any deferral of compensation subject to Section 409A and, accordingly, the benefits provided pursuant hereto shall be paid on or before the fifteenth day of the third month following the taxable year in which such benefit vests and is no longer subject to a substantial risk of forfeiture, as determined in accordance with Section 409A. With respect to any RSUs the settlement of which is deferred in accordance with Section 409A and applicable Company policy, the parties intend that this Award will be administered in accordance with Section 409A and to the extent that any applicable provision is ambiguous as to its compliance with Section 409A, the provision shall be read in such a manner so that such payments hereunder comply with Section 409A. The Company makes no representation or warranty and shall have no liability to Participant or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A but do not satisfy an exemption or exception from, or the conditions of, Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Each payment under this Agreement shall be considered a separate payment and not one of a series of payments for purposes of Section 409A.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)If as of Cessation Date Participant is determined to be a "specified employee" as defined in Section 409A, and one or more of the payments or benefits received or to be received by Participant pursuant to this Agreement would constitute deferred compensation subject to Section 409A that is payable upon Participant's termination, no such payment or benefit will be provided under this Agreement until the earliest of the first payroll date that is (A) six (6) months and one (1) day after Participant's "separation from service" for any reason, or (B) after Participant's death (the "<u>Six-Month Delay</u>"). The provisions of this section shall only apply to the extent required to avoid Participant's incurrence of any additional tax or interest under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14<u>Agreement Severable</u>. In the event that any provision of the Grant Notice or this Agreement is held invalid or unenforceable, such provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of the Grant Notice or this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15<u>Limitation on Participant's Rights</u>. Participation in the Plan confers no rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and shall not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.16<u>Counterparts</u>. The Grant Notice may be executed in one or more counterparts, including by way of any electronic signature, subject to Applicable Law, each of which shall be deemed an original and all of which together shall constitute one instrument.

## Exhibit 10.3

**BJ'S WHOLESALE CLUB HOLDINGS, INC.<br>2018 INCENTIVE AWARD PLAN<br>PERFORMANCE-VESTING RESTRICTED STOCK UNIT AWARD GRANT NOTICE AND**

**PERFORMANCE-VESTING RESTRICTED STOCK UNIT AWARD AGREEMENT**

**(CEO, EVPs, SVPs, select VPs)**

BJ's Wholesale Club Holdings, Inc., a Delaware corporation (the "<u>Company</u>"), pursuant to its 2018 Incentive Award Plan, as amended from time to time (the "<u>Plan</u>"), hereby grants to the holder listed below ("<u>Participant</u>") the number of performance-vesting restricted stock units (the "<u>PSUs</u>") set forth below (the "<u>Award</u>"). The PSUs are subject to the terms and conditions set forth in this Performance-Vesting Restricted Stock Unit Award Grant Notice (the "<u>Grant Notice</u>"), the Plan and the Performance-Vesting Restricted Stock Unit Award Agreement attached hereto as <u>Exhibit A</u> (the "<u>Agreement</u>"), each of which is incorporated into this Grant Notice by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the Agreement.

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| | |
|:---|:---|
| **Participant:** | <u>[____]</u> |
| **Grant Date:** | April 1, [____] |
| **Target Number of PSUs:** | <u>[_____]</u> |
| **Maximum Number of PSUs:** | <u>[______]</u> |
| **Vesting Criteria:** | The PSUs will be eligible for vesting, contingent upon the attainment of both the Performance Condition and Service Condition specified in Appendix I. |
| **Issuance Schedule:** | The Shares will be issued (to the extent any portion of the PSUs is earned and becomes vested in accordance with the Vesting Criteria in Appendix I) in accordance with Section 2.4 of the Agreement. |

---

By Participant's acceptance of award, Participant agrees to be bound by the terms and conditions of the Plan, the Agreement and the Grant Notice. Participant has reviewed the Plan, the Agreement and the Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing the Grant Notice and fully understands all provisions of the Plan, the Agreement and the Grant Notice. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan, the Agreement and the Grant Notice. In accepting the PSUs, the Participant acknowledges, understands and agrees that the PSUs, as well as all other PSUs previously granted to the Participant, whether vested or exercised (as applicable), shall be subject to the terms and conditions of the Company's Policy for Recoupment of Incentive Compensation, to the extent applicable.

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**<u>EXHIBIT A</u>**

**<u>TO PERFORMANCE -VESTING RESTRICTED STOCK UNIT AWARD GRANT NOTICE</u><br>PERFORMANCE – VESTING RESTRICTED STOCK UNIT AWARD AGREEMENT**

Pursuant to the Grant Notice to which this Agreement is attached, the Company has granted to Participant the number of PSUs set forth in the Grant Notice.

**ARTICLE I.<br>GENERAL**

1.1<u>Defined Terms</u>. Capitalized terms not specifically defined herein shall have the meanings specified in the Plan or the Grant Notice. For purposes of this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)"<u>Cause</u>" shall mean a Company Group Member having "Cause" to terminate Participant's employment or services, as such term is defined in any relevant employment agreement between Participant and a Company Group Member; *provided* that, in the absence of such agreement containing such definition, a Company Group Member shall have "Cause" to terminate Participant's employment or services upon: (i) Participant's failure to substantially perform the Participant's duties as reasonably determined by the Board (other than as a result of the Participant's Disability); (ii) materially dishonest statements or acts by the Participant with respect to the Company Group or any of its Affiliates; (iii) Participant's commission of an act constituting a felony under the laws of the United States or any state thereof; (iv) Participant's gross negligence, willful misconduct or insubordination with respect to the Company Group or any of its Affiliates; or (v) any other act or omission by the Participant which is materially injurious to the financial condition or business reputation of the Company Group or any of its Affiliates. Whether or not an event giving rise to "Cause" occurs will be determined by the Board in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)"<u>Cessation Date</u>" shall mean the date of Participant's Termination of Service (regardless of the reason for such termination).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)"<u>Company Group</u>" shall mean the Company and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)"<u>Company Group Member</u>" shall mean each member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)"<u>Determination Date</u>" shall have the meaning set forth in Appendix I.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)"<u>Disability</u>" shall have the meaning ascribed to such term in any relevant employment agreement between Participant and a Company Group Member; *provided* that, in the absence of such agreement containing such definition, "Disability" shall mean permanent disability or incapacity as determined in accordance with the Company's disability insurance policy, if such a policy is then in effect, or if no such policy is then in effect, such permanent disability or incapacity shall be determined by the Board in its good faith judgment based upon inability to perform the essential functions of his or her position, with reasonable accommodation by the Company, for a period in excess of 180 days during any period of 365 calendar days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)"<u>Retirement</u>" shall mean the Participant has: (i) attained age 55 and completed at least 10 years of continued status as an Employee, based on the Adjusted Service Date as defined in the Company's Adjusted Service Dates Policy; (ii) provided advance written notice of his or her intention to retire at least 6 months in advance of such intended Retirement. The foregoing elements of Retirement may be waived, in whole or in part, for hardship as determined in the sole discretion of the Compensation Committee (the "Committee"). In the event that a Participant is terminated without Cause after satisfying (i) of this paragraph, the requirements of (i) and (ii) of this paragraph will be deemed automatically satisfied as of the Cessation Date.

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1.2<u>Incorporation of Terms of Plan</u>. The PSUs are subject to the terms and conditions set forth in this Agreement and the Plan, each of which is incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control.

**ARTICLE II.<br>AWARD OF PSUS**

2.1<u>Award of PSUs</u>. In consideration of Participant's past and/or continued employment with or service to any Company Group Member and for other good and valuable consideration, effective as of the grant date set forth in the Grant Notice (the "<u>Grant Date</u>"), the Company has granted to Participant the number of PSUs set forth in the Grant Notice, upon the terms and conditions set forth in the Grant Notice, the Plan and this Agreement, subject to adjustments as provided in the each of the foregoing. Each PSU represents the right to receive one Share or, at the option of the Company, an amount of cash as set forth in Section 2.3(c), in either case, at the times and subject to the conditions set forth herein. However, unless and until the PSUs have vested, Participant will have no right to the payment of any Shares subject thereto. Prior to the actual delivery of any Shares, the PSUs will represent an unsecured obligation of the Company, payable only from the general assets of the Company.

2.2<u>Vesting of PSUs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The PSUs shall vest upon the attainment of both the Performance Condition and the Service Condition in accordance with terms set forth in Appendix I.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any PSUs that have not satisfied both the Performance Condition and the Service Condition as of the Determination Date shall thereupon be forfeited immediately and without any further action by the Company.

2.3<u>Tax Withholding</u>. Notwithstanding any other provision of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Company Group has the authority to deduct, withhold or require Participant to remit to the applicable Company Group Member, an amount sufficient to satisfy any applicable federal, state, local and foreign taxes (including the employee portion of any FICA obligation) required by Applicable Law to be withheld with respect to any taxable event arising pursuant to this Agreement. The Company Group may withhold or Participant may make such payment in one or more of the forms specified below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)by cash or check made payable to the Company Group Member with respect to which the withholding obligation arises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)by the deduction of such amount from other compensation payable to Participant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)with the consent of the Administrator, by requesting that the Company withhold a net number of Shares subject to the Award having a then current Fair Market Value not exceeding the amount necessary to satisfy the withholding obligation of the Company Group based on the maximum statutory withholding rates in Participant's applicable jurisdictions for federal, state, local and foreign income tax and payroll tax purposes that are applicable to such taxable income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)with the consent of the Administrator, by tendering to the Company vested Shares held for such period of time as may be required by the Administrator in order to avoid adverse accounting consequences and having a then current Fair Market Value not exceeding the amount necessary to satisfy the withholding obligation of the Company Group based on the maximum statutory withholding rates in Participant's applicable jurisdictions for federal, state, local and foreign income tax and payroll tax purposes that are applicable to such taxable income; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)in any combination of the foregoing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)With respect to any withholding taxes arising in connection with the Award, in the event Participant fails to provide timely payment of all sums required pursuant to Section 2.3(a), the Company shall have the right and option, but not the obligation, to treat such failure as an election by Participant to satisfy all or any portion of Participant's required payment obligation pursuant to Section 2.3(a)(ii) or Section 2.3(a)(iii) above, or any combination of the foregoing as the Company may determine to be appropriate. The Company shall not be obligated to deliver any Shares to Participant or his or her legal representative unless and until Participant or his or her legal representative shall have paid or otherwise satisfied in full the amount of all federal, state, local and foreign taxes applicable with respect to the taxable income of Participant resulting from the vesting of PSUs hereunder or any other taxable event with respect to the PSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)In the event any tax withholding obligation arising in connection with the Award will be satisfied under Section 2.3(a)(iii) above, then the Company may elect to instruct any brokerage firm determined acceptable to the Company for such purpose to sell on Participant's behalf a whole number of Shares from those Shares that are subject to the Award as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy the tax withholding obligation and to remit the proceeds of such sale to the Company Group Member with respect to which the withholding obligation arises. Participant's acceptance of this Award constitutes Participant's instruction and authorization to the Company and such brokerage firm to complete the transactions described in this Section 2.3(c), including the transactions described in the previous sentence, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Participant is ultimately liable and responsible for, and, to the extent permitted by Applicable Law, agrees to indemnify and keep indemnified the Company Group from, all taxes owed in connection with the Award, regardless of any action any Company Group Member takes with respect to any tax withholding obligations that arise in connection with the Award. No Company Group Member makes any representation or undertaking regarding the treatment of any tax withholding in connection with the awarding or vesting of the Award or the subsequent sale of Shares. The Company Group does not commit and is under no obligation to structure the Award to reduce or eliminate Participant's tax liability

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4<u>Distribution or Payment of PSUs; Dividend Equivalents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Participant's PSUs shall be distributed in Shares (either in book-entry form or otherwise) or, at the option of the Company, paid in an amount of cash as set forth in Section 2.3(c), in either case, as soon as administratively practicable following the vesting of the applicable PSU pursuant to Section 2.2, and, in any event, within sixty (60) days following such vesting (for the avoidance of doubt, this deadline is intended to comply with the "short-term deferral" exemption from Section 409A of the Code). Notwithstanding the foregoing, the distribution or payment in settlement of PSUs may be delayed if (i) such payment or distribution is subject to a deferral election made in accordance with Section 409A and applicable Company policy, or (ii) such payment or distribution will violate Federal securities laws or any other Applicable Law, provided, in such case, that such distribution or payment shall be made at the earliest date at which the Company reasonably determines that the making of such distribution or payment will not cause such violation, as required by Treasury Regulation Section 1.409A-2(b)(7)(ii), and provided further that no payment or distribution shall be delayed under this Section 2.3(a) if such delay will result in a violation of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)On the Determination Date, the Company will determine the number of PSUs which satisfy the Performance Condition (the "<u>Earned PSUs</u>"). Unless the distribution or payment in settlement of the PSUs is subject to a deferral election made in accordance with Section 409A and applicable Company policy, reasonably promptly (but, in all events, no later than 30 days) after the Determination Date, the Company will pay to the Participant in cash, an amount of dividend equivalents equal to the aggregate dividends that would have been paid with respect to the Earned PSUs on or before the Determination Date if such Earned PSUs had been issued as Shares on the first day of the Performance Period (other than those with respect to which an adjustment was made pursuant to Section 4.2 hereof). With respect to dividends with a record date prior to the Determination Date and a payment date after the Determination Date, the Company will pay the Participant, in cash, on the respective payment dates for such dividends, an amount of dividend equivalents equal to the amount of such dividends that would have been paid

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with respect to the Earned PSUs if such Earned PSUs had been issued as Shares prior to the record date for such dividends. However, if the distribution or payment in settlement of the PSUs is delayed in accordance with Section 409A, the payments contemplated in the two preceding sentences shall instead be paid in accordance with the requirements of Section 409A and applicable Company policy. The issuance of the Earned PSUs and payment of dividend equivalents is intended to comply with the requirements for a "short term deferral" under Section 409A of the Code absent a deferral election made in accordance with Section 409A and applicable Company policy and this Agreement and the PSUs will be construed and administered to comply with such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Conditions to Issuance of Certificates</u>. The Company shall not be required to issue or deliver any certificate or certificates for any Shares or to cause any Shares to be held in book-entry form prior to the fulfillment of all of the following conditions: (A) the admission of the Shares to listing on all stock exchanges on which such Shares are then listed, (B) the completion of any registration or other qualification of the Shares under any state or federal law or under rulings or regulations of the Securities and Exchange Commission or other governmental regulatory body, which the Administrator shall, in its absolute discretion, deem necessary or advisable, and (C) the obtaining of any approval or other clearance from any state or federal governmental agency that the Administrator shall, in its absolute discretion, determine to be necessary or advisable.

2.5<u>Restrictions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>PSUs Not Transferable</u>. The PSUs may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution, unless and until the Shares underlying the PSUs have been issued, and all restrictions applicable to such Shares have lapsed. No PSUs or any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of Participant or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence. Notwithstanding the foregoing, with the consent of the Administrator, the PSUs may be transferred to certain persons or entities related to the Participant, including but not limited to members of Participant's family, charitable institutions or trusts or other entities whose beneficiaries or beneficial owners are members of Participant's family or to such other persons or entities as may be expressly approved by the Administrator, pursuant to any such conditions and procedures the Administrator may require.

2.6<u>No Rights as a Stockholder</u>. The Participant's interest in the PSUs will not entitle the Participant to any rights as a stockholder of the Company. The Participant will not be deemed to be the holder of, or have any of the rights and privileges of a stockholder of the Company in respect of, the Shares unless and until such Shares have been issued to the Participant in accordance with Section 2.4.

**ARTICLE III.<br>RESTRICTIVE COVENANTS**

3.1<u>Obligation to Maintain Confidentiality</u>. Participant acknowledges that the confidential or proprietary information and data (including trade secrets) of the Company Group and any of its Affiliates obtained by Participant while employed by or in the service of the Company Group or any of its Affiliates (including, without limitation, prior to the date of this Agreement) ("<u>Confidential Information</u>") are the property of the Company Group and/or its Affiliates, including information concerning acquisition opportunities in or reasonably related to the Company Group's or any of its Affiliates' business or industry of which Participant becomes aware during the period of Participant's employment or service. Therefore, Participant agrees that he or she will not disclose to any unauthorized person, group or entity or use for Participant's own account any Confidential Information without the Company's written consent, unless and to the extent that the Confidential Information, (a) becomes generally known to and available for use by the public other than as a result of Participant's acts or omissions to act, (b) was known to Participant prior to Participant's employment or service with the Company Group or any of its Affiliates, or (c) is required to be disclosed pursuant to any applicable law or court order. Participant shall use reasonable best efforts to

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deliver to the Company on his or her Cessation Date, or at any other time the Company may request, all memoranda, notes, plans, records, reports, computer tapes, printouts and software and other documents and data (and copies thereof) relating to the Confidential Information, Work Product (as defined below) or the business of the Company Group and any of its Affiliates (including, without limitation, all acquisition prospects, lists and contact information) which Participant may then possess or have under his or her control, but excluding financial information of the Company relating to Participant's ownership of shares of Common Stock, which information will nonetheless continue to constitute Confidential Information.

3.2<u>Ownership of Property</u>. Participant acknowledges that all discoveries, concepts, ideas, inventions, innovations, improvements, developments, methods, processes, programs, designs, analyses, drawings, reports, patent applications, copyrightable work and mask work (whether or not including any Confidential Information) and all registrations or applications related thereto, all other proprietary information and all similar or related information (whether or not patentable) that relate to the Company Group or any of its Affiliates actual or anticipated business, research and development, or existing or future products or services and that were or are conceived, developed, contributed to, made, or reduced to practice by Participant (either solely or jointly with others) while employed by or in the service of the Company Group or any of its Affiliates (including, without limitation, prior to the date of this Agreement) (including any of the foregoing that constitutes any proprietary information or records) ("<u>Work Product</u>") belong to the Company Group and its Affiliates and Participant hereby assigns, and agrees to assign, all of the above Work Product to the Company Group and its Affiliates. Any copyrightable work prepared in whole or in part by Participant in the course of Participant's work for any of the foregoing entities shall be deemed a "work made for hire" under the copyright laws, and the Company Group and its Affiliates shall own all rights therein. To the extent that any such copyrightable work is not a "work made for hire," Participant hereby assigns and agrees to assign to the Company Group and its Affiliates all right, title, and interest, including without limitation, copyright in and to such copyrightable work. Participant shall as promptly as practicable under the circumstances disclose such Work Product and copyrightable work to the Company and perform all actions reasonably requested by the Company (whether during or after Participant's employment with or service to the Company Group and its Affiliates) to establish and confirm the Company Group's or its Affiliates' ownership (including, without limitation, assignments, consents, powers of attorney, and other instruments).

3.3<u>Third Party Information</u>. Participant understands that the Company Group and its Affiliates will receive from third parties confidential or proprietary information ("<u>Third Party Information</u>") subject to a duty on the Company Group and Affiliates part to maintain the confidentiality of such information and to use it only for certain limited purposes. During the period of Participant's employment with or service to the Company Group or any of its Affiliates and thereafter, and without in any way limiting the provisions of Section 3.1 above, Participant will hold Third Party Information in the strictest confidence and will not disclose to anyone (other than personnel and consultants of the Company Group or its Affiliates who need to know such information in connection with their work for the Company Group or its Affiliates) or use, except in connection with Participant's work for the Company Group or any of its Affiliates, Third Party Information unless expressly authorized by the Company in writing or unless and to the extent that the Third Party Information, (a) becomes generally known to and available for use by the public other than as a result of Participant's acts or omissions to act, (b) was known to Participant prior to Participant's employment with or service to the Company Group and any of its Affiliates, or (c) is required to be disclosed pursuant to any applicable law or court order.

3.4<u>Use of Information of Prior Employers</u>. During Participant's employment with and/or services, Participant will not improperly use or disclose any confidential information or trade secrets, if any, of any former employers or any other person to whom Participant has an obligation of confidentiality, and will not bring onto the premises of the Company Group or any of its Affiliates any unpublished documents or any property belonging to any former employer or any other person to whom Participant has an obligation of confidentiality unless consented to in writing by the former employer or person. Participant will use in the performance of Participant's duties only information which is (a)(i) common knowledge in the industry or (ii) otherwise legally in the public domain, (b) otherwise provided or developed by the Company Group or its Affiliates or (c) in the case of materials, property or information

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belonging to any former employer or other person to whom Participant has an obligation of confidentiality, approved for such use in writing by such former employer or person.

3.5<u>Nonsolicitation and Non-hire</u>. Participant acknowledges that, in the course of Participant's employment and/or services, Participant will become familiar with the Company Group's and its Affiliates' trade secrets and with other confidential information concerning the Company Group and its Affiliates and that Participant's services will be of special, unique and extraordinary value to the Company Group and its Affiliates. Therefore, Participant agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Restriction</u>. While employed or engaged by the Company Group or any of its Affiliates, and for a period beginning on the Participant's Cessation Date and ending on the second anniversary of such Cessation Date, Participant shall not directly or indirectly through another entity (i) induce or attempt to induce any employee of the Company Group or any of its Affiliates to leave the employ of the Company Group or any of its Affiliates, or in any way interfere with the relationship between the Company Group or any of its Affiliates and any employee thereof, and (ii) hire any person who was an employee of the Company Group or any of its Affiliates within 180 days prior to the time such employee was hired by Participant, (iii) induce or attempt to induce any customer, supplier, licensee or other business relation of the Company Group or any of its Affiliates to cease doing business with the Company Group and its Affiliates or in any way interfere with the relationship between any such customer, supplier, licensee or business relation and the Company Group and its Affiliates or (iv) directly or indirectly acquire or attempt to acquire an interest in any business relating to the business of the Company Group or its Affiliates and with which the Company Group or its Affiliates has entered into substantive negotiations or has requested and received confidential information relating to the acquisition of such business by the Company Group or any of its Affiliates in the two-year period immediately preceding Participant's Termination of Services with the Company Group and its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Enforcement</u>. If, at the time of enforcement of Section 3.5(a), a court holds that the restrictions stated herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum duration, scope or geographical area reasonable under such circumstances shall be substituted for the stated period, scope or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum duration, scope and area permitted by law. Participant agrees that because his or her services are unique and Participant has access to confidential information, money damages would be an inadequate remedy for any breach of this Article 3. Participant agrees that the Company Group or any of its Affiliates in the event of a breach or threatened breach of this Article 3, may seek injunctive or other equitable relief in addition to any other remedy available to them in a court of competent jurisdiction without posting bond or other security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Non-disparagement</u>. Participant agrees that at no time during his employment or engagement by the Company Group and its Affiliates or thereafter, shall he or she make, or cause or assist any other person to make, any statement or other communication to any third party which impugns or attacks, or is otherwise critical of, in any material respect, the reputation, business or character of the Company Group or any of its Affiliates or any of their respective directors, officers or employees; *provided* that Participant shall not be required to make any untruthful statement or to violate any law.

3.6<u>Acknowledgments</u>. Participant acknowledges that the provisions of this Article 3 are (a) in addition to, and not in limitation of, any obligation of Participant's under the terms of any employment agreement with the Company Group or any of its Affiliates, (b) in consideration of (i) employment with or engagement by the Company Group or any of its Affiliates, (ii) the issuance of the PSUs by the Company and (iii) additional good and valuable consideration as set forth in this Agreement. In addition, Participant agrees and acknowledges that the restrictions contained in Article 3 do not preclude Participant from earning a livelihood, nor do they unreasonably impose limitations on Participant's ability to earn a living. Participant agrees and acknowledges that the potential harm to the Company Group or any of its Affiliates of the non-enforcement of this Article 3 outweighs any potential harm to Participant of its enforcement by injunction or otherwise. Participant acknowledges that he or she has carefully read this Agreement and has given careful consideration to the restraints imposed upon Participant by this Agreement, and is in full accord as to their necessity for the reasonable and proper protection of confidential and proprietary

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information of the Company Group and its Affiliates now existing or to be developed in the future. Participant expressly acknowledges and agrees that each and every restraint imposed by this Agreement is reasonable with respect to subject matter, time period and geographical area.

3.7<u>Response to Subpoena; Whistleblower Protection</u>. Participant may respond to a lawful and valid subpoena or other legal process but shall give the Company Group the earliest possible notice thereof, and shall, as much in advance of the return date as possible, make available to the Company Group and its counsel the documents and other information sought, and shall assist such counsel in resisting or otherwise responding to such process. Notwithstanding anything to the contrary contained herein, no provision of this Agreement shall be interpreted so as to impede Participant (or any other individual) from reporting possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General, or making other disclosures under the whistleblower provisions of federal law or regulation. Participant does not need the prior authorization of the Company Group to make any such reports or disclosures and Participant shall not be not required to notify the Company Group that such reports or disclosures have been made.

**ARTICLE IV.<br>OTHER PROVISIONS**

4.1<u>Administration</u>. The Administrator shall have the power to interpret the Plan, the Grant Notice and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan, the Grant Notice and this Agreement as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Administrator will be final and binding upon Participant, the Company and all other interested persons. To the extent allowable pursuant to Applicable Law, no member of the Committee or the Board will be personally liable for any action, determination or interpretation made with respect to the Plan, the Grant Notice or this Agreement.

4.2<u>Adjustments</u>. The Administrator may accelerate the vesting of all or a portion of the PSUs in such circumstances as it, in its sole discretion, may determine. Participant acknowledges that the PSUs are subject to adjustment, modification and termination in certain events as provided in this Agreement and the Plan, including Section 12.2 of the Plan.

4.3<u>Notices</u>. Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company at the Company's principal office, and any notice to be given to Participant shall be addressed to Participant at Participant's last address reflected on the Company's records. By a notice given pursuant to this <u>Section 4.3</u>, either party may hereafter designate a different address for notices to be given to that party. Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.

4.4<u>Data Privacy Consent</u>. In order to administer the Plan and this Agreement and to implement or structure future equity grants, the Company and its agents may process any and all personal or professional data, including but not limited to Social Security or other identification number, home address and telephone number, date of birth and other information that is necessary or desirable for the administration of the Plan and/or this Agreement.

4.5<u>Titles</u>. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

4.6<u>Governing Law</u>. The laws of the State of Delaware shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

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4.7<u>Conformity to Securities Laws</u>. Participant acknowledges that the Plan, the Grant Notice and this Agreement are intended to conform to the extent necessary with all Applicable Laws, including, without limitation, the provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated thereunder by the Securities and Exchange Commission and state securities laws and regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Award is granted, only in such a manner as to conform to Applicable Law. To the extent permitted by Applicable Law, the Plan, the Grant Notice and this Agreement shall be deemed amended to the extent necessary to conform to Applicable Law.

4.8<u>Amendment, Suspension and Termination</u>. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Administrator or the Board, <u>provided</u> that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the Award in any material way without the prior written consent of Participant.

4.9<u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth in Section 2.5(b) and the Plan, this Agreement shall be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

4.10<u>Limitations Applicable to Section 16 Persons</u>. Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the Award, the Grant Notice and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by Applicable Law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

4.11<u>Not a Contract of Employment</u>. Nothing in this Agreement or in the Plan shall confer upon Participant any right to continue to serve as an employee or other service provider of any Company Group Member or shall interfere with or restrict in any way the rights of the Company Group, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between a Company Group Member and Participant.

4.12<u>Entire Agreement</u>. The Plan, the Grant Notice and this Agreement (including any exhibit or appendix hereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof.

4.13<u>Section 409A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Unless the settlement is subject to a deferral election made in accordance with Section 409A and applicable Company policy, the PSUs granted hereunder are not intended to provide for any deferral of compensation subject to Section 409A and, accordingly, the benefits provided pursuant hereto shall be paid on or before the fifteenth day of the third month following the taxable year in which such benefit vests and is no longer subject to a substantial risk of forfeiture, as determined in accordance with Section 409A. With respect to any PSUs the settlement of which is deferred in accordance with Section 409A and applicable Company policy, the parties intend that this Award will be administered in accordance with Section 409A and to the extent that any applicable provision is ambiguous as to its compliance with Section 409A, the provision shall be read in such a manner so that such payments hereunder comply with Section 409A. The Company makes no representation or warranty and shall have no liability to Participant or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A but do not satisfy an exemption or exception from, or the conditions of, Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Each payment under this Agreement shall be considered a separate payment and not one of a series of payments for purposes of Section 409A.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)If as of Cessation Date Participant is determined to be a "specified employee" as defined in Section 409A, and one or more of the payments or benefits received or to be received by Participant pursuant to this Agreement would constitute deferred compensation subject to Section 409A that is payable upon Participant's termination, no such payment or benefit will be provided under this Agreement until the earliest of the first payroll date that is (A) six (6) months and one (1) day after Participant's "separation from service" for any reason, or (B) after Participant's death (the "Six-Month Delay"). The provisions of this section shall only apply to the extent required to avoid Participants incurrence of any additional tax or interest under Section 409A.

4.14<u>Agreement Severable</u>. In the event that any provision of the Grant Notice or this Agreement is held invalid or unenforceable, such provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of the Grant Notice or this Agreement.

4.15<u>Limitation on Participant's Rights</u>. Participation in the Plan confers no rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and shall not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets.

4.16<u>Counterparts</u>. The Grant Notice may be executed in one or more counterparts, including by way of any electronic signature, subject to Applicable Law, each of which shall be deemed an original and all of which together shall constitute one instrument.

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**APPENDIX I**

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| | |
|:---|:---|
| **Performance Periods:** | There are three separate and consecutive performance periods of February 1, 2026 – January 30, 2027 ("<u>Performance Period 1</u>"), January 31, 2027 – January 29, 2028 ("<u>Performance Period 2</u>"), and January 30, 2028 – February 3, 2029 ("<u>Performance Period 3</u>") (each a "<u>Performance Period</u>" and collectively, the "<u>Performance Periods</u>"). |
| **Performance Component:** | Each Performance Period has both an adjusted EPS growth target and an adjusted net merchandise sales growth target (defined below) as set forth under the Performance Condition, with "growth" being defined from the prior Performance Period. For example, growth with respect to Performance Period 2 being determined with respect to on the adjusted net merchandise sales for the prior Performance Period, or in fiscal year 2026 in the case of Performance Period 1. Whether a performance target is achieved with respect to each Performance Period will be determined by the Compensation Committee in its sole discretion on the respective Determination Dates. |
| **Vesting:** | PSUs shall vest upon the satisfaction of both the Service Condition and the Performance Condition, where 1/3<sup>rd</sup> of the PSUs will vest in accordance with the determination of the Performance condition for Performance Period 1, 1/3<sup>rd</sup> of the PSUs will vest in accordance with the determination of the Performance condition for Performance Period 2, and 1/3<sup>rd</sup> of the PSUs will vest in accordance with the determination of the Performance condition for Performance Period 3. For the avoidance of doubt, the Performance Condition shall not be deemed satisfied until as determined by the Committee on the respective Determination Dates (as defined below). |
| **Service Condition:** | The Service Condition shall be satisfied with respect to all PSUs subject to this Award by the Participant's continued status as an Employee through April 1 immediately following conclusion of Performance Period 3 (or the Friday immediately prior to such day, if April 1 is not a trading day). "<u>Service Period</u>" means the period of time from and including the first day of Performance Period 1 through and including the last day of Performance Period 3. |
| **Performance Condition:** | The Performance Condition shall be bifurcated with 70% of the PSUs vesting (if at all) in accordance with an adjusted EPS growth target and 30% of the PSUs vesting (if at all) in accordance with an adjusted net merchandise sales target ("<u>Adjusted Net Merchandise Sales</u>"). For purposes hereof, Adjusted Net Merchandise Sales means gross merchandise sales including sales adjustments, such as without limitation, rewards programs, coupons, and similar offsets, and excluding gas. The Committee shall determine during the first ninety (90) days following the end of each applicable Performance Period the number of PSUs which shall satisfy the applicable Performance Condition (such date for each Performance Period being, the "<u>Determination Date</u>"). All determinations with respect to adjusted EPS and Adjusted Net Merchandise Growth shall be made by the Committee in its sole discretion and, with respect to each Performance Period, and the Performance Condition shall not be achieved and the PSUs shall not vest until the Committee determines whether the Performance Condition has been satisfied. The total number of PSUs which satisfy the Performance Condition with respect to each Performance Period shall be as follows: rounded down to the nearest whole Share, with linear interpolation for growth rates falling between two consecutive Growth Rate Hurdles as outlined in the table below: |

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Appendix I - 1

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| | | | |
|:---|:---|:---|:---|
| **Performance Condition with Respect to Each Performance Period** | **Performance Condition with Respect to Each Performance Period** | **Performance Condition with Respect to Each Performance Period** | **Performance Condition with Respect to Each Performance Period** |
| **Adjusted EPS – 70%** | **Adjusted EPS – 70%** | **Adjusted Net Merchandise Sales Growth – 30%** | **Adjusted Net Merchandise Sales Growth – 30%** |
| Growth Rate Hurdle | Payout as % of Target | Growth Rate <br>Hurdle | Payout as % of <br>Target |
| Below -5.9% | 0% | Below 1.0% | 0% |
| -3.0% | 50% | 2.0% | 50% |
| 1.0% to 4.6% | 100% | 4.0% to 6.2% | 100% |
| 7.7% | 150% | 7.0% | 150% |
| 10.3% | 200% | 8.0% | 200% |

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In addition to the foregoing, the Committee shall, on the Determination Date, determine the Average Annual Increase in Total Paid Members ("<u>AAI</u>") measured over the Performance Period. In addition to the PSUs determined above, (i) to the extent AAI over the performance period equals or exceeds 6.75%, an additional number of PSUs shall vest upon the satisfaction of the Service Condition equal to the Target Number of PSUs specified on the Grant Notice multiplied by 50%, and (ii) if AAI is 7% or greater over the collective Performance Periods, an additional number of PSUs shall vest upon the satisfaction of the Service Condition equal to the Target Number of PSUs specified on the Grant Notice multiplied by 50% (for a total number of additional PSUs inclusive of (i) equal to 100% of Target Number of PSUs specified on the Grant Notice). Notwithstanding the foregoing, the additional number of PSUs that shall vest pursuant to the preceding sentence shall be zero if the Tenured Renewal Rate for Performance Period 3, rounded to the nearest whole number, is less than 89%. The Committee's determination of the foregoing shall be made in the sole and absolute discretion of the Committee and shall take into account any material effects of any increase in membership fees on AAI (which for the avoidance of doubt includes any material effect on Tenured Renewal Rate) during the collective Performance Periods, including an increase in membership fees enacted prior to the collective Performance Periods.

In the event of a Change in Control prior to the Determination Date, PSUs shall vest as follows: (i) any completed Performance Period shall vest based on the actual achievement of the Performance Condition for that Performance Period; and (ii) with respect to each then uncompleted Performance Period, the Performance Condition will be deemed achieved at Target irrespective of actual achievement of the Performance Condition, and the PSUs shall vest based on the total number of PSUs for all uncompleted Performance Periods, including any adjustment to the total number of PSUs resulting from the satisfaction of the Average Annual Increase in Total Paid Members and the Target Renewal Rate metrics outlined below. In addition, the Committee shall determine in its sole and absolute discretion whether, as of the end of the fiscal year in which the Change in Control occurs, AAI is likely to meet or exceed the AAI thresholds of 6.75% or 7% and whether, as of the end of the fiscal year in which the Change in Control occurs, the Tenured Renewal Rate is likely to meet or exceed the Tenured Renewal Rate threshold of 89%, and the PSUs shall vest based on the total number of PSUs for all Performance Periods (including completed and uncompleted), including any adjustment to the total number of PSUs resulting from the satisfaction of the AAI and the Target Renewal Rate metrics.

In the event of a Termination of Service due to the Participant's death, Disability or Retirement prior to the last day of the Service Period, the PSUs shall vest on each Determination Date on a pro rata basis, calculated as: a \* (b/c), rounded down to the nearest whole Share. Where: a = the total number of PSUs that satisfy the Performance Condition for all Performance Periods in the aggregate, based on actual achievement of such Performance Condition, and including any adjustment to the total number of PSUs resulting from the Committee's determination, in its sole discretion, that the AAI and the Target Renewal Rate metrics (as described above) were satisfied; b = the total number of calendar days Participant was in continuous service as an Employee during the Service Period; c = the total number of calendar days in the Service Period. The Committee may in its sole discretion grant additional vesting, accelerate vesting, or modify payout timing for any PSU award issued under this Agreement.

For purposes of this Agreement:

Appendix I - 2

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Adjusted EPS means the sum of the earnings per share, determined by the Committee in its sole discretion in accordance with generally accepted accounting practices in the United States, for each of the three fiscal years of the Performance Period, adjusted to account for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unusual or one-time items of expense or income, including without limitation: asset impairment charges; charges associated with the closing or relocating of a club; charges related to debt refinancing or other capital markets transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• income or expense related to discontinued operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restructuring charges including severance charges related to the restructuring and any other non-recurring or out of period charge as approved by the Committee and the tax impact of the foregoing adjustments on net income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes to corporate tax rates or similar fees or charges, including tariffs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effects of acquisitions; divestitures; stock split-ups; stock dividends or distributions; recapitalizations; warrants or rights issuances or combinations; exchanges or reclassifications with respect to any outstanding class or series of the Company's common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporate transaction, such as any merger of the Company with another corporation; any consolidation of the Company and another corporation into another corporation; any separation of the Company or its business units (including a spin-off or other distribution of stock or property by the Company); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any reorganization of the Company; or any partial or complete liquidation by the Company; or sale of all or substantially all of the assets of the Company.

**AAI means the average of the annual rates of increase in Total Paid Members over each of the three fiscal years of the performance period, measured for each such year from the January 15 immediately prior to the start of such fiscal year to the January 15 immediately prior to the end of such fiscal year.** 

**Tenured Renewal Rate means the "tenured renewal rate" as reported in the Company's Annual Report on Form 10-K filed immediately following the end of the Performance Period.** 

Appendix I - 2

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER**

I, Robert W. Eddy, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of BJ's Wholesale Club Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | | |
|:---|:---|:---|
| Date: May 28, 2026 |  |  |
|  | By: | /s/ Robert W. Eddy |
|  |  | Robert W. Eddy |
|  |  | President and Chief Executive Officer |
|  |  | (Principal Executive Officer) |

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER**

I, Laura L. Felice, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of BJ's Wholesale Club Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | | |
|:---|:---|:---|
| Date: May 28, 2026 |  |  |
|  | By: | /s/ Laura L. Felice |
|  |  | Laura L. Felice |
|  |  | Executive Vice President, Chief Financial Officer |
|  |  | (Principal Financial Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of BJ's Wholesale Club Holdings, Inc. (the "Company"), hereby certifies, to his knowledge, that:

1. The Company's Quarterly Report on Form 10-Q for the fiscal quarter ended May 2, 2026 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | | |
|:---|:---|:---|
| Date: May 28, 2026 |  |  |
|  | By: | /s/ Robert W. Eddy |
|  |  | Robert W. Eddy |
|  |  | President and Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of BJ's Wholesale Club Holdings, Inc. (the "Company"), hereby certifies, to her knowledge, that:

1. The Company's Quarterly Report on Form 10-Q for the fiscal quarter ended May 2, 2026 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | | |
|:---|:---|:---|
| Date: May 28, 2026 |  |  |
|  | By: | /s/ Laura L. Felice |
|  |  | Laura L. Felice |
|  |  | Executive Vice President, Chief Financial Officer |
|  |  | (Principal Financial Officer) |

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