follow us

BJ's earnings up, but just barely

NATICK, MASS. — With weaker margins and rising costs offsetting a double-digit gain in sales, BJ's Wholesale Club Inc., a Northeast no-frills retailer, pushed fourth-quarter earnings up a skimpy 1.5 percent, to $49.2 million from $48.5 million last year.

Sales at the warehouse club climbed by 12.6 percent, to $1.9 billion from $1.7 billion last year, with the all-important measure of same-store sales rising by 7.5 percent, including a contribution of about 1 percentage point from gasoline sales.

Taking a bite out of the bottom line, average gross margin contracted by 20 basis points, or two-tenths of a percentage point, to 9.5 percent from 9.7 percent the preceding year. In another drag on earnings, costs climbed higher by 40 basis points, or four-tenths of a percentage point, to 7.3 percent of sales from 6.9 percent a year ago. Measured in absolute dollars, costs shot up by 19.5 percent, far outpacing the 12.6 percent increase in sales, to $138.8 million from $116.2 million last year.

For all of last year, net income fell by 21.4 percent, to $102.9 million from $130.9 million. Sales for all of last year rose by 14.9 percent, to $6.6 billion from $5.7 billion, and same-store sales rose by 7.8 percent.

B.J.'s Wholesale Club Inc.

Qtr. 1/31 (x000) 2003 2002 % chg
a-Net sales, excluding membership fees of $36.1 million, up 6.5 percent from$33.8 million last year. For all of 2003, membership fees of $139.4 million rose 6.6 percent from $130.7 million.
b-Third-quarter results include interest income of $48,000, compared with $23,000 in interest expense last year; a $2.5 million gain on contingent lease obligations, vs. a $574,000 loss a year ago; and a $154,000 loss from discontinued operations, compared with a $707,000 year-before loss.
c-12-month results include $74,000 in interest expense, compared with $293,000 in interest income the prior year; a $4.5 million gain on contingent lease obligations vs. a $15.6 million gain a year ago; a $676,000 loss from discontinued operations, compared with a $14.9 million loss in 2002; and a $1.3 million loss stemming from a change in accounting.
Sales $1,893,196a $1,681,194a 12.6
Oper. income (EBIT) 76,387 80,746 -5.4
Net income 49,229b 48,490b 1.5
Per share (diluted) 0.70 0.70 0.0
Average gross margin 9.5 9.7 --
SG&A expenses 7.3 6.9 --
12 months 2003 2002 % chg
Sales 6,584,808a 5,728,955a 14.9
Oper. income (EBIT) 172,574 231,515 -25.5
Net income 102,866c 130,866c -21.4
Per share (diluted) 1.47 1.84 -20.1


Featured Video

  • Online Moves From Afterthought To Main Thought For Textiles Suppliers

    Camera Icon More Videos

Other Home Furnishings Sites

Casual Living
Gifts and Decorative Accessories
Home Accents Today
Kids Today
Furniture Today