BJ’s Wholesale has booked a drop in fourth-quarter and full-year earnings as costs related to store closures and restructuring charges dented margins.
The US club retailer revealed that fourth-quarter net profits for the three months to 29 January plummeted by 81% to US$10.2m. The result was hit by a one-off charge of $41.1m the company said. Sales rose 7.4% during the period to $2.9bn with like-for-like sales rising 3.8%.
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For the full year, net profits dropped 27.4% to $95m on sales which were up 8%. Nevertheless, BJ’s president and CEO Laura Sen said she was “very pleased” with the result, which reflects “continued margin expansion and excellent cost control”.
“Consistent growth in member visits, membership renewals and sales of perishable food demonstrate that BJ’s is continuing to capture market share from other retail channels,” Sen commented.
Looking to next year, BJ’s said that profits in fiscal 2011 will be boosted by cost savings, higher membership fees and sales growth.
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