BJs Wholesale Club, Inc. saw September sales increase 2.1% to $751.0 million from $735.8 million in September 2005. On a comparable club basis, September sales decreased by 0.9%, including a negative impact from lower sales of gasoline of 0.3%. In 2005, the company reported a comparable club sales increase of 3.8% for September, including a contribution from sales of gasoline of 3.2%.
Despite lower-than-planned sales for the first two months of the quarter, the Company expects to report earnings for the quarter in line with its previous guidance of $.25 to $.30 per diluted share, driven by strong results in its gasoline operations relative to plan. BJs is scheduled to report financial results for the third quarter of 2006 on Tuesday, November 14, 2006.
Sales Results for September ($ in thousands) Five Weeks Ended % Change September 30, October 1, Net Comp. 2006 2005 Sales Sales $ 751,020 $ 735,824 2.1% -0.9% Thirty-five Weeks Ended % Change September 30, October 1, Net Comp. 2006 2005 Sales Sales $ 5,349,464 $ 5,084,474 5.2% 1.5%
The company provided the following additional information regarding September 2006 sales for BJs Wholesale Club:
Comparable club sales increased in Metro New York, upstate New York and the Southeast regions and decreased in the Mid Atlantic and New England regions.
Excluding sales of gasoline, comparable club sales declined by approximately 1.5% during the first three weeks and increased by approximately 1.5% during weeks four and five. Including sales of gasoline, comparable club sales for the first three weeks of the month declined by approximately 1%. For weeks four and five, comparable club sales including gasoline were approximately flat to last year.
Excluding sales of gasoline, the average transaction amount for the month of September increased by approximately 2% and traffic decreased by approximately 2%. Traffic was strongest in week five when it increased by approximately 1%.
On a comparable club basis, food sales were approximately flat to last year and general merchandise sales decreased by approximately 1%. Categories with strong comparable club sales increases compared to last year included consumer electronics, luggage, paper products, personal health, plastic bags, produce, small appliances, sporting goods, and televisions. Weaker categories versus last year included apparel, DVDs, jewelry, fresh meat and residential furniture.
For the month of October, the company is projecting comparable club sales in the range of flat to plus 2%, including a negative impact from sales of gasoline of approximately 2% to 3%. In October 2005 the company reported a comparable club sales increase of 2.9%, including a contribution from sales of gasoline of approximately 3.3%.