BJ’s Wholesale Comps Climb 4.3% in June

BJ's Wholesale Club sales for June 2005 increased by 8.9% to $796.1 million from $730.9 million in June 2004. On a comparable club basis, sales increased by 4.3% in June, including a negative impact from sales of gasoline of approximately 30 basis points. Last year, the Company reported a comparable club sales increase of 7.4% for June, including a positive impact from sales of gasoline of 2.6%.

Based on lower than planned profitability on sales of gasoline during the quarter, resulting from steadily rising crude oil and wholesale gasoline prices, the Company expects to report earnings for the second quarter at the low end of its previously guided range of $.43 to $.46 per diluted share.

Commenting on sales results for the month of June, BJ's president and chief executive officer, Mike Wedge, said “Our overall sales for the month were strong, due primarily to warm and sunny weather across the chain in contrast to cool, wet weather during June of last year and May of this year. Sales of air conditioners and fans had a positive impact on comparable club sales of approximately 1%. On a comparable club basis, food sales increased by approximately 6% and general merchandise sales increased by approximately 2%.”

            Sales Results for June
              ($ in thousands)

    Five Weeks Ended         % Change
  July 2,      July 3,      Net      Comp.
   2005         2004       Sales     Sales

$ 796,084    $ 730,945      8.9 %     4.3%


 Twenty-Two Weeks Ended      % Change
  July 2,      July 3,      Net      Comp.
   2005         2004       Sales     Sales

$3,168,406   $2,918,317     8.6%      4.4%

The Company provided the following additional information regarding June sales:

Comparable club sales rose in all major markets, with the highest increases in the Southeast, Mid-Atlantic and New England regions and the smallest increase in Metro New York. Comparable club sales increases were highest in week two and softest in week four.

Excluding sales of gasoline, traffic was about even with last year and the average transaction amount rose by approximately 4%.

Categories with strong comparable club sales increases versus last year included air conditioners & fans, electronics, juices, lawn & garden, paper products, produce, soda & water, summer seasonal and televisions. Weaker categories versus last year included best seller books, cigarettes, computer equipment, dairy, jewelry, milk and sporting goods.