BJ's beats 4Q EPS guidance

NATICK, Mass. BJ's Wholesale Club today reported fourth quarter net income of $50.2 million, or 80 cents per diluted share, exceeding its guidance which called for earnings per share of 70 cents to 74 cents. The favorable net income results were due primarily to strong January sales, favorable merchandise margin rates, strong gasoline profitability and expenses coming in slightly lower than projected, the company reported.

For the fourth quarter of 2006, the company reported net income of $11.9 million, or 18 cents per diluted share.

For the full year 2007, net income was $122.9 million, or $1.90 per diluted share.

For the full year 2006, net income was $72 million, or $1.08 per diluted share.

Net sales for the fourth quarter of 2007, which included 13 weeks of sales versus 14 weeks of sales in 2006, rose by 1.9% to $2.4 billion. Comparable-club sales for the fourth quarter, based on 13 weeks of sales in both years, increased by 5.4%, including a favorable impact from sales of gasoline of 2.4%, and a negative impact from the absence of pharmacy sales of 0.4%. On a comparable-club basis, merchandise sales excluding gas and pharmacy increased by 3.4%.

Net sales for 2007, which included 52 weeks versus 53 weeks in 2006, increased by 6.2% to $8.8 billion. Comparable-club sales for 2007, which included 52 weeks in both years, increased by 3.7%, including a favorable impact from sales of gasoline of 1.1%, and a negative impact from the absence of pharmacy sales of 0.4%. On a comparable-club basis, merchandise sales excluding gas and pharmacy increased by 3%.

BJ's also reported its results for the month of February. Sales for the month increased by 9% to $655.7 million from $601.8 million in February 2007. On a comparable-club basis, sales increased by 5.9% for the month of February, including a contribution from sales of gasoline of 2.7%. For February 2007, the company reported a comparable-club sales increase of 3%, including a positive impact from gasoline sales of 0.9% and a negative impact from the absence of pharmacy sales of 0.4%.