BJs Wholesale Club, Inc. recorded a 6.2% increase in fiscal December net sales to $1.03 billion from $971.8 million in December 2006. On a comparable club basis, sales increased by 3.0% for the month of December, including a contribution from sales of gasoline of 1.7% and a negative impact from the absence of pharmacy sales of 0.3%. Severe snow storms in the Northeast during the month negatively affected comparable club sales results by approximately 1%.
For the month of January 2008, the company expects merchandise comparable club sales, excluding the impact of gasoline and pharmacy, to increase by 1% to 3%. Based on expected sales results for January, the company reiterated its earnings guidance of 70 cents to 74 cents per diluted share for the fourth quarter of 2007. Full results for the fourth quarter are scheduled to be announced on March 5, 2008.
Sales Results for December 2007 | |||||||||||
| ($ in thousands) | |||||||||||
Five Weeks Ended | % Change | ||||||||||
| January 5, | January 6, | Net | Comp. | ||||||||
| 2008 | 2007 | Sales | Sales | ||||||||
| $ | 1,031,844 | $ | 971,812 | 6.2% | 3.0% | ||||||
Forty-eight Weeks Ended | % Change | ||||||||||
| January 5, | January 6, | Net | Comp. | ||||||||
| 2008 | 2007 | Sales | Sales | ||||||||
| $ | 8,161,978 | $ | 7,570,634 | 7.8% | 3.4% | ||||||
| Five Weeks Ended January 5, 2008 | Forty-eight Weeks Ended January 5, 2008 | ||
| Merchandise comparable club sales | 1.6% | 2.9% | |
| Impact of gasoline sales | 1.7% | 0.9% | |
| Impact of pharmacy closures | -0.3% | -0.4% | |
| Comparable club sales | 3.0% | 3.4% |
The company provided the following additional information regarding comparable club sales for December 2007:
- On a comparable club basis, sales increased in all weeks except week three. The decrease in week three was due primarily to snow storms in the Northeast which severely hurt traffic.
- Sales increased in all regions, with the largest increases in Upstate New York and Metro New York, and the lowest increases in the New England and Southeast regions.
- Excluding sales of gasoline, traffic decreased by approximately 2% and the average transaction amount increased by approximately 3%. The decrease in traffic was due primarily to the impact of snow storms in the Northeast during week three, partly offset by an increase in traffic generated by the annual holiday trial membership program.
- Sales of food increased by approximately 6% and general merchandise sales decreased by about 3%.
- Merchandise categories with the strongest sales increases compared to last year included candy, cheese, coffee, dairy, ice melt, juices, meat, paper products, pet foods and produce.
- Merchandise categories with the largest sales decreases versus last year included Christmas seasonal, cigarettes, electronics, furniture, jewelry, wine, music, prerecorded video and toys.
