How do you interpret gift card programs — deferred revenue revenue recognized1?

An increase signifies a higher velocity of gift card usage and customer spending within the club.

How does gift card programs — deferred revenue revenue recognized1 compare across companies?

Comparable to 'Breakage and Redemption Revenue' or 'Deferred Revenue Amortization' in retail financial reporting.

BJ's Wholesale Club Holdings, Inc. BJ Gift Card Programs — Deferred Revenue Revenue Recognized1

Discontinued — last reported Q3 '18

Similar metrics at other companies

BROSGift card redemptions — Deferred revenue recognized

$5.56M+9.2%

DKSDeferred gift card revenue — Acquired gift card liabilities

$305.55M+17.4%

TXRHCredit Card — Contract With Customer Liability Revenue Recognized

$153.1M+10.0%

BROSCard, reward redemptions and breakage — Revenue deferred - gift card activations, loyalty app loads, and loyalty points and rewards earned

$118.07M+33.8%

SBUXRevenue Recognition Period Stored Value Cards and Loyalty Program Breakage — Deferred Revenue, Revenue Recognized, Including Opening Balance Sheet Amounts

-$3.9B-1.0%

TXRHGift Cards — Contract With Customer Liability Revenue Recognized

$36M+37.9%

Other financials

Income statement

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Revenue$5.7B+9.9%

Gross profit$1.0B+6.0%

Operating income$207.9M+2.1%

Net income$142.7M-4.7%

EPS (diluted)$1.10-2.7%

Balance sheet

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Cash & equivalents$27.8M-29.5%

Total debt$2.9B+6.2%

Total equity$2.1B+7.8%

Total assets$7.9B+10.8%

Cash flow

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Operating cash flow$140.0M-32.7%

CapEx$182.0M+29.5%

Free cash flow-$42.0M-162%

Valuation

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Market cap$10.88B-17.8%

Enterprise value$13.72B-14.1%

P/E19.1×-4.0×

P/S0.5×-0.1×

Profitability

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Gross margin18.5%-0.1pp

Operating margin3.7%-0.2pp

Net margin2.6%-0.2pp

FCF margin1.1%-0.3pp

Returns & leverage

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Return on equity27.9%-4.9pp

Debt / equity1.3×0.0×

Current ratio0.7×0.0×

Where this comes from

Reported directly by BJ's Wholesale Club Holdings, Inc. in its filing.

Tagged under the XBRL concept us-gaap:DeferredRevenueRevenueRecognized1.

The official record: BJ's Wholesale Club Holdings, Inc.’s 10-Q, filed December 7, 2018, on SEC EDGAR. View the filing →

Questions, answered.

What does gift card programs — deferred revenue revenue recognized1 mean?: The amount of previously deferred gift card liability that was converted into revenue during the period.
How do you interpret gift card programs — deferred revenue revenue recognized1?: An increase signifies a higher velocity of gift card usage and customer spending within the club.
How does gift card programs — deferred revenue revenue recognized1 compare across companies?: Comparable to 'Breakage and Redemption Revenue' or 'Deferred Revenue Amortization' in retail financial reporting.