BJ’s Sales Increase 7.5% on 2.9% Comps Gain

BJ's Wholesale Club, Inc. reported that sales for October 2005 increased by 7.5% to $588.3 million from $547.4 million in October 2004. On a comparable club basis, sales increased by 2.9% for the month of October, including a contribution from sales of gasoline of approximately 3.3%. Last year, the Company reported a comparable club sales increase of 4.9% for October, including a 0.6% contribution from sales of gasoline.

For the third quarter ended October 29, 2005, total sales increased by 9.3% and comparable club sales increased by 4.1%, including a contribution from sales of gasoline of 3.3%. For the first nine months of fiscal 2005, total sales increased by 8.9% and comparable club sales increased by 4.3%, including a contribution from sales of gasoline of 1.5%.

Despite lower-than-planned sales for the third quarter, the company expects to report earnings for the quarter in line with its previous guidance of 35 cents – 39 cents per diluted share, due primarily to strong results in its gasoline operations relative to plan. BJ's is scheduled to report financial results for the third quarter of 2005 on Tuesday, November 15, 2005.

                            Sales Results for October 2005
                                   ($ in thousands)
               Four Weeks Ended                      % Change
           October 29,   October 30,             Net            Comp.
                 2005          2004            Sales           Sales
          $   588,259     $ 547,410             7.5%            2.9%

            Thirty-nine Weeks Ended                  % Change
          October 29,    October 30,             Net            Comp.
                2005           2004            Sales           Sales
        $  5,672,953    $ 5,209,176             8.9%            4.3%

The company provided the following additional information regarding October 2005 sales:

On a comparable club basis, sales increased during the first three weeks, with the largest increase in week three, driven by pre-hurricane stock up sales in Florida. Sales decreased in week 4 due primarily to the negative effect of the Halloween calendar shift and to the impact of Hurricane Wilma in Florida.

By major region, comparable club sales increased in New England, Upstate New York, the Mid-Atlantic and the Southeast, and decreased slightly in metro New York.

Excluding sales of gasoline, traffic decreased by approximately 4% and the average transaction amount rose by approximately 4%.

On a comparable club basis, sales of food increased by approximately 3% and general merchandise sales decreased by approximately 5%.

Merchandise categories with the strongest sales increases compared to last year included automotive & tools (which included generators and flashlights), coffee, paper products, produce, residential furniture and soda & water. Weaker categories included Christmas, computer equipment, domestics, giftware, housewares, jewelry, prerecorded video & DVD, small appliances, sporting goods, toys and video game hardware & software.