BJ's Wholesale Logs Higher 2Q Profit, Revenue

Dow Jones
Aug 21
 

BJ's Wholesale Club reported higher second-quarter profit and revenue, as budget-conscious shoppers continued to flock to its stores in search of value.

The warehouse club chain on Friday posted a profit of $173.9 million, or $1.36 a share, for its quarter ended Aug. 1, compared with $150.7 million, or $1.14 a share, a year earlier.

Stripping out one-time items, earnings still came in at $1.36 a share. Analysts polled by FactSet had expected adjusted earnings of $1.17 a share.

Total revenue jumped 16% to $6.23 billion, ahead of Wall Street models for $5.97 billion.

Comparable-club sales, which account for store openings and closings, increased by 12%, or by 3.1% excluding gasoline sales. Analysts were looking for a 2.6% gain.

Membership-fee income rose 9.9% to $135.6 million. The company attributed the increase primarily to strength in membership acquisition, retention and higher-tier membership penetration across both new and existing clubs.

Chief Executive Bob Eddy said the company's value proposition continues to resonate with members in its clubs and at its gas stations. "The momentum we're seeing across our strategic priorities gives us real confidence in the road ahead," he added.

Looking ahead, BJ's said it now expects adjusted earnings of $4.60 to $4.80 a share for its current fiscal year, ending Jan. 30. That compares with a prior forecast of $4.40 to $4.60 a share. The company continues to project comparable-club sales, excluding the impact of gasoline sales, to be up 2% to 3%.

Analysts are looking for adjusted earnings of $4.53 a share and comparable-club sales growth of 2.5%.

Shares climbed 3.9%, to $94.90, in premarket trading.

 
 

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