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BJ’s Wholesale Club Inc. has posted net income of $23.0 million, or 43 cents per diluted share, for the third quarter of 2010, vs. the $17.4 million, or 32 cents per diluted share, reported in the year-ago period. These results included a charge of $11.7 million pre-tax ($6.9 million post-tax), or 13 cents per diluted share, to establish a reserve in connection with the settlement of a legal claim relating to wage and hour job classification claims.
For the first nine months of 2010, net income came to $84.8 million, or $1.58 per diluted share. Last year, the retailer reported net income of $76.7 million, or $1.40 per diluted share. The 2009 results included the aforesaid third-quarter charge.
Net sales for the third-quarter ended Oct. 30, 2010, rose 4.8 percent to $2.57 billion from $2.45 billion last year. For the first nine months of fiscal 2010, net sales increased 8.6 percent to $7.84 billion from $7.22 billion in the year-ago period. Comparable-club sales for the third quarter and nine-month periods were 2.5 percent and 4.8 percent, respectively, and, including the impact of fuel sales, 1.0 percent and 2.0 percent, respectively. Merchandise comps were 1.5 percent for the quarter and 2.8 percent for the first nine weeks of fiscal 2010.
BJ’s also issued revised earnings guidance for the year ending Jan. 29, 2010. The company now expects to report net income in the range of $133.6 million to $135.6 million and diluted earnings per share in the range of $2.48 to $2.52. The retailer’s previous guidance, issued Aug.18, 2010, was for net income in the range of $128.5 million to $134.5 million and diluted earnings per share in the range of $2.40 to $2.50.
Natick, Mass.-based BJ’s operates 190 warehouse clubs in 15 states.