BJ’s Wholesale Sales Increase – Analyst Blog

BJ’s Wholesale Club Inc. (BJ), a leading warehouse club operator in the United States, recently posted sales results for the four-week period ended May 1, 2010.

 

The net sales for April 2010 jumped 9.5% to $787 million from $718.7 million in the same month last year.

 

Comparable club sales for April rose 4.6%, including a positive impact of 3.8% from gasoline sales. Excluding gasoline sales, merchandise comparable club sales grew marginally by 0.8%.

 

BJ’s hinted that merchandise comparable club sales were hurt approximately by 2.5% due to a shift in pre-Easter sales previously.

 

During the month under review, the company experienced a 3% rise in sales of food, whereas sales of general merchandise dropped by nearly 3%.

 

By categories – cigarettes, dairy, houseware, juices, meat, milk, produce, small appliances and salty snacks etc. reported robust sales. On the contrary, air conditioners, computers, disposable plates & utensils, electronics, household chemicals, televisions and trash bags & foils delivered sluggish sales.

 

Excluding gasoline sales, traffic rose by nearly 1% year over year in the month, whereas the average transaction amount was down slightly.

 

For first-quarter 2010, sales rose 12.9% to $2,549 million from $2,258.6 million posted in the same period last year.

 

Comparable club sales for first quarter 2010 climbed 7.8%, including a positive impact of 3.6% from gasoline sales. Merchandise comparable club sales for the quarter increased by 4.2%, excluding gasoline sales.

 

Comparable club sales for first quarter 2009 fell 1.5%, including an adverse impact of 9% from gasoline sales. Excluding the negative impact of gasoline sales, merchandise comparable clubs sales rose by 7.5%.

 

BJ’s Wholesale Club currently operates 188 clubs in 15 states.