BJ's Q2 Income, Sales Rise

BJ’s Wholesale Club Inc. yesterday reported net income for the second quarter ended July 31, 2010, of $35.8 million, or 67 cents per diluted share, vs. $35.1 million, or 64 cents per diluted share, in the year-ago period. For the first half of 2010, the company’s net income was $61.9 million, or $1.16 per diluted share, compared with $59.4 million, or $1.09 per diluted share, last year.

Total sales for the quarter grew 8.6 percent to $2.7 billion and comparable-club sales rose by 4.4 percent, including a contribution from gasoline sales of 1.5 percent. Excluding the impact of gasoline, merchandise comps increased 2.9 percent. In the year-ago period, BJ’s posted a decrease in comps of 7.7 percent, including a negative impact from gas sales of 10.6 percent. Excluding the gasoline impact, merchandise comps for the second quarter of 2009 increased 2.9 percent.

The company also issued updated earnings guidance yesterday. For the full year ending Jan. 29, 2011, BJ’s now expects to report net income in the range of $128.5 to $134.5 million, and diluted earnings per share in the range of $2.40 to $2.50. Previous guidance, provided earlier this year, was for net income in the range of $136.9 million to $141.9 million, and diluted earnings per share in the range of $2.58 to $2.68.

Additionally, the company now expects to report an increase in net sales of 8.0 percent to 10.0 percent, and an increase in comps of 4.0 percent to 6.0 percent, including a contribution from gas sales of 0.5 percent to 2.5 percent. Merchandise comps excluding gasoline are expected to rise 2.5 percent to 4.5 percent. Earlier sales guidance was for an increase in net sales of 9.2 percent to 11.2 percent, and an increase in comps of 4.0 percent to 6.0 percent, including a positive contribution from gas sales of 0.5 percent to 2.5 percent. Merchandise comps excluding gasoline were expected to go up 2.7 percent to 4.7 percent.

Natick, Mass.-based BJ’s operates 189 clubs in 15 states.