BJ's reports sales, earnings growth, lowers guidance

NATICK, Mass. BJ’s Wholesale Club reported net income for the second quarter ended July 31 of $35.8 million, or 67 cents per diluted share. For the second quarter of 2009, the company reported net income of $35.1 million, or 64 cents per diluted share.

For the first half of 2010, net income was $61.9 million, or $1.16 per diluted share. For the first half of 2009, net income was $59.4 million, or $1.09 per diluted share.

Total sales for the second quarter ended July 31 increased by 8.6% to $2.7 billion and comparable-club sales increased by 4.4%, including a contribution from sales of gasoline of 1.5%. Excluding the impact of gasoline, merchandise comparable club sales increased by 2.9%. For the second quarter of 2009, the company reported a comparable-club sales decrease of 7.7%, including a negative impact from sales of gasoline of 10.6%. Excluding the impact of gasoline, merchandise comparable-club sales for the second quarter of 2009 increased by 2.9%.

For the full year ending Jan. 29, 2011, the company  said it now expects to report net income in the range of $128.5 to $134.5 million, and diluted earnings per share in the range of $2.40 to $2.50. Previous guidance, provided on May 19, was for net income in the range of $136.9 million to $141.9 million, and diluted earnings per share in the range of $2.58 to $2.68.

For the year ending Jan. 29, 2011, the company said it now expects to report an increase in net sales of 8% to 10% and an increase in comparable-club sales of 4% to 6%, including a contribution from gasoline sales of 0.5% to 2.5%. Merchandise comparable-club sales excluding gasoline are expected to increase 2.5% to 4.5%. Previous sales guidance, provided during the company’s first quarter conference call on May 19, was for an increase in net sales of 9.2% to 11.2%, and an increase in comparable-club sales of 4% to 6%, including a positive contribution from gasoline sales of 0.5% to 2.5%. Merchandise comparable club sales excluding gasoline were expected to increase 2.7% to 4.7%.