BJ's Warehouse Club (BJ 0.85%) shareholders dramatically outperformed the stock market last month. The stock jumped 37% in May compared to a 4.5% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.
The rally added to significant gains since the start of 2020, as the retailer's stock is up over 60%.
Investors applauded the chain's fiscal first-quarter earnings results, which showed booming sales growth through the early days of the COVID-19 pandemic in North America. The warehouse retailer said revenue jumped 27% at existing locations in the period compared to a 1% uptick during the prior full fiscal year. That result compared favorably to the 10% increase that Walmart's (WMT 0.75%) Sam's Club reported, and to Costco's (COST 0.12%) 8% boost.
BJ's had trailed these peers in prior quarters, so investors will be watching the next few earnings reports to see if the Q1 metrics represent a sustainable change in its market share trajectory. That's the surest way the consumer staples giant can improve its long-term profit potential while boosting shareholder returns at the same time.