BJ's Boosts Net 28 Percent in Second Quarter
WESTBOROUGH, Mass.-A healthy sales gain, especially in gasoline, provided the fuel to BJ Wholesale Club's second quarter, which finished on July 30 with a gain of 28 percent in net income, to $45.7 million.
Net sales rose 11 percent to $3 billion, which included a same-club sales increase of 7.8 percent. While selling, general and administrative expenses rose 7.8 percent in dollar terms, they declined 26 basis points as a percentage of net sales to 8.4 percent. Gross margin was 8.9 percent, the same as it was in last year's second quarter.
Laura Sen, BJ's president and CEO, said the company's results were helped by favorable merchandise margins and higher profitability from gasoline sales. For the second year in a row, second-quarter sales of food rose 5 percent, including an 8 percent rise in sales of perishable foods. "It is clear that our members are doing more of their weekly food shopping with us," Sen said.