Gas Sales Fuel BJ’s 10.2% Comps Growth in October

BJ’s Wholesale Club, Inc. reported that sales for October 2008 increased by 11.6% to $738.8 million from $662.1 million in October 2007. On a comparable club basis, sales for October 2008 increased by 10.2%, including a contribution from sales of gasoline worth 3.6%.

The company also announced today that as a result of unprecedented market conditions in the retail gasoline industry during the quarter, profits generated by BJ’s gasoline stations greatly exceeded its expectations. Primarily as a result of higher than expected gasoline income, the company increased its earnings guidance for the third quarter of 2008 to a range of 45 to 49 cents per diluted share, from previous guidance of 36 to 40 cents per diluted share.

The company provided the following additional information regarding comparable club sales for October 2008:

• By week, sales increases were roughly even throughout the month with slightly higher increases during the first half.
• By major region, sales increases were highest in Upstate New York and lowest in New England.
• Excluding sales of gasoline, traffic increased by approximately 6% versus last year and the average transaction amount increased by approximately 1%.
• Sales of food increased by approximately 12%, driven by strong sales of perishables and grocery items. Sales of general merchandise decreased by approximately 2%, due primarily to lower sales of televisions, electronics and jewelry.
• Departments with the strongest sales increases compared to last year included bakery, coffee, dairy, deli, frozen, health & beauty, meat, oils & shortenings, pet food, paper, pasta, prepared dinners, produce, snacks, soda and video games. Weaker departments versus last year included cigarettes, electronics, jewelry, pre-recorded video, televisions and water.