Tuesday, August 28th, 2018
Riding a high wave is BJ’s Wholesale Club, who wrapped up a successful quarter—its first back in the public ring—for the 13 and 26 weeks that ended August 4th. According to a press release, the company is entering its third quarter on a high note after seeing strong results that beat the company's expectations.
“We are pleased with our second quarter results, which exceeded our expectations,” said Christopher J. Baldwin, Chairman and Chief Executive Officer. “We’re still in the very early stages of our transformation. Our progress is accelerating as we work to attract and retain members, get them shopping, and make it more convenient to shop at BJ’s. As a result of our performance, we have increased our expectations for the full-year.”
Results for the second quarter (13 weeks) ended August 4th, included the following:
- Net sales increased 4.3% to $3.2 billion compared to $3.1 billion in the second quarter of fiscal 2017
- Comparable sales increased 5.0% compared to the second quarter of fiscal 2017. Merchandise comparable sales for the quarter increased 2.0%, representing the fourth consecutive quarter of positive merchandise comparable sales
- Membership fee income ("MFI") increased 9.7% to $70.4 million compared to $64.2 million in the second quarter of fiscal 2017
- Gross profit increased to $588.5 million from $553.3 million in the second quarter of fiscal 2017
- Operating income was $38.7 million compared to $74.8 million in the second quarter of fiscal 2017
- Loss from continuing operations was $5.5 million compared to income from continuing operations of $19.8 million in the second quarter of fiscal 2017
- Adjusted EBITDA increased 5.4% t $143.0 million compared to $135.7 million in the comparable period last year
- Adjusted net income was $43.3 million, or $0.31per diluted share, compared to $30.5 million, or $0.22 per diluted share, in the second quarter of fiscal 2017
Highlights for the 26 weeks, ended August 4th, include the following:
- Net sales increased to $6.2 billion from $6.0 billion in the first half of fiscal 2017
- Comparable sales increased 4.2% compared to the first half of fiscal 2017
- MFI increased 8.4% to $138.4 million compared to $127.7 million in the first half of fiscal 2017
- Gross profit increased to $1.14 billion from $1.06 billion the first half of fiscal 2017
- Operating income increased to $103.2 million from $47.0 million in the first half of fiscal 2017
- Net income was $8.5 million, or $0.09 per diluted share, compared to a net loss of $39.2 million, or $0.44 per diluted share, in the first half of fiscal 2017
- Adjusted net income was $71.4 million, or $0.51 per diluted share, compared to $38.1 million, or $0.27 per diluted share, in the first half of fiscal 2017
BJ's shares spiked 6 percent in premarket trade, according to a report by MarketWatch—a surge attributed to its strong financial earnings.
To read the financial report in its entirety, click here.
As BJ’s Wholesale Club battles it out with competitors like Costco and Walmart, will it keep these strong financial results and growth? Deli Market News will keep you updated on the retail scene.