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BJ's Club Shares Rise 18% on Q1 Comparable Store Net Sales Growth of 19.9%

Streetwise Reports, Streetwise Reports
0 Comments| May 22, 2020

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Shares of BJ's Wholesale Club Holdings reached a new 52-week high price today after the company reported that comparable club revenues in Q1/20 excluding gasoline sales increased by 27% year-over-year.

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Membership warehouse club BJ's Wholesale Club Holdings Inc. (BJ:NYSE) today announced financial results for its first quarter 2020 ended May 2, 2020.

The company's President and CEO Lee Delaney commented, "Our top priority remains the health and safety of our members and team members during this challenging time and I am deeply thankful for the contributions of our dedicated team members this past quarter...While the coronavirus pandemic increased demand for our services, our team's hard work and the capabilities we have built over the last four years have enabled us to thrive and deliver very strong merchandise comparable sales. Furthermore, we drove earnings and cash flow growth and invested in our team members and our business. These efforts will allow us to continue to build on this momentum and position ourselves for success over the long-term."

The company reported that comparable club sales for Q1/20 increased 19.9%, compared to Q1/19, and that excluding gasoline sales, comparable sales increased by 27.0% over the same corresponding period. The firm advised that gross profit increased to $736.7 million in Q1/20 compared to $574.2 million in Q1/19.

The company indicated that operating income increased to $143.8 million, or 3.8% of total revenues in Q1/20, versus $70.7 million, or 2.2% of total revenues in Q1/19 and that it posted earnings per diluted share of $0.69 in Q1/20, which reflects a 176.0% increase over Q1/19.

The company also stated that it repurchased 175,000 shares of common stock totaling $4.0 million early in the quarter under its share repurchase program.

The company noted that in response to COVID-19 it has implemented a number of operational changes to support team members, members and communities it serves. Specifically, it has increased all hourly team members wages by an additional $2 per hour, distributed special incremental bonuses for managers and key personnel and enacted an emergency paid leave policy to support team members during the pandemic.

The firm stated that it has also implemented operational measures to encourage social distancing in clubs including adding instructional signage, providing personal protective equipment to all team members, adding enhanced cleaning and sanitization procedures and installing mobile and fixed sneeze-guard barriers at membership desks, checkout lanes and exits.

BJ's Wholesale Club is based in Westborough, Mass., and operates 218 membership warehouse clubs and 146 gas locations in 16 states in the Eastern U.S. The company reports that it has 5.5 million members and posts total annual sales of approximately $12.7 billion.

BJ's Wholesale Club started the day with a market capitalization of around $4.0 billion with approximately 138.5 million shares outstanding and a short interest of about 9.3%. BJ shares opened 7% higher today at $31.00 (+$2.07, +7.16%) over yesterday's $28.93 closing price and reached a new 52-week high price this afternoon of $33.85. The stock has traded today between $30.39 and $34.45 per share and is currently trading at $33.37 (+$5.40, +18.64%).

1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

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