BJ's reports 8% net sales increase

NATICK, Mass. BJ’s Wholesale Club on Tuesday reported a net income of $22.7 million for its third quarter, a 24% jump over the prior year's period.

The wholesaler, who experienced a $1.4 million loss in 2006 because of post-tax and discontinued operations of the company’s ProFoods Restaurant Supply clubs, is seeing nothing but green this year.

Net sales for the third quarter were approximately $2.1 billion, an increase of 8% over the third quarter of 2006, while comparable-club sales grew by 3.4%.

According to the company, strong categories included televisions, small appliances, cheese, coffee, dairy, frozen produce, juices, meat, milk, office supplies, produce, soda and water. Weaker categories over last year included apparel, automotive and tools, cigarettes, pre-recorded video, residential furniture and tires.

BJ's ceo Herb Zarkin said sales of perishable foods rose 8%—a product category carrying high profit margins that also lifted second quarter results. "Perishable foods represent our greatest opportunity to capture market share from supermarkets," he noted.