BJ’s Wholesale Stock Slumps on Pullback in Sales Guidance

News Room

Shares of
BJ’s Wholesale Club
were dropping after the membership warehouse retailer trimmed its sales guidance.

For the fiscal year ending Feb. 3,
BJ’s Wholesale
(ticker: BJ) now expects comparable-club sales, excluding the impact of gasoline sales, to increase by 1% to 1.8% year over year, compared with a prior call for a gain of about 2%. Adjusted earnings guidance of $3.80 to $3.92 a share remained the same. For the fourth quarter, the company expects comparable-club sales to range from a 2% decrease to a 1% increase from a year earlier.

“As we look ahead to the rest of the year, we remain confident in our ability to maintain the momentum in our traffic and market share gains due to our unrelenting focus on value,” said Chief Financial Officer Laura Felice in the earnings release. “We also continue to navigate shifts in consumer behavior driven by the broader macroeconomic environment.”

The company posted third-quarter adjusted earnings of 98 cents a share, beating Wall Street estimates of 95 cents. Earnings a year ago were 99 cents a share.

Third-quarter total revenue of $4.92 billion beat estimates of $4.9 billion. Excluding the impact of gasoline, comparable-club sales dipped 0.1% from the prior year.

Shares of BJ’s fell 2.4% to $66.21 on Friday. Shares of competitor
Costco Wholesale
(COST) were down 0.3% after falling 3% Thursday following earnings from
Walmart
(WMT). In September, Costco posted better-than-expected earnings and sales in its fiscal fourth quarter.

Write to Emily Dattilo at [email protected]

Read the full article here

Share this Article
Leave a comment