US retailer BJ’s Wholesale Club said today (17 August) that its second-quarter earnings had eclipsed its forecasts on the back of improved margins and higher profits from fuel sales.
The wholesaler, which agreed to a US$2.8bn takeover bid from private-equity firms Leonard Green & Partners and CVC Capital Partners posted net income of US$45.7m, or $0.84 per diluted share, for the three months to 30 July. The result, it said, had “significantly” exceeded the company’s projections.
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A year earlier, BJ’s Wholesale Club reported net income of US$35.8m, or $0.67 per diluted share.
Second-quarter net sales climbed 11% to $2.98bn. Comparable-club sales increased 7.8%. Excluding fuel, comparable sales were up 3.8%.
Laura Sen, BJ’s president and CEO, said, “BJ’s performance of 10% versus our guidance reflected favourable merchandise margins, higher gas profitability and expense savings that exceeded plan.”
First-half net income was $79.4m, or $1.47 per diluted share. Net income for the first half of 2010 was $61.9m, or $1.16 per diluted share. Half-year net sales climbed 10.5% to $5.75bn.
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By GlobalDataSen added: “We are very excited about our positive sales momentum for the second quarter and first half of 2011. It is clear that our members are doing more of their weekly food shopping with us and I believe that we have tremendous opportunities to further grow our business.”
