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BJ’s Projects Gains in 2011

WESTBOROUGH, Mass. — BJ’s Wholesale Club on Wednesday said lower costs, higher membership fees and sales growth sparked by perishable foods and anticipated inflation would improve profits in 2011.

WESTBOROUGH, Mass. — BJ’s Wholesale Club on Wednesday said lower costs, higher membership fees and sales growth sparked by perishable foods and anticipated inflation would improve profits in 2011.

For the fourth quarter, which ended Jan. 29, net income was down 81% to $10.2 million as BJ’s absorbed expenses for closing five stores and a corporate restructuring. Sales of $2.9 billion during the period were up 7.4% from the same period last year, with comparable store sales improving by 3.8% overall and 1.7% excluding gasoline.

BJ’s last month announced the closure of five unprofitable stores and the layoff of around 500 workers. It also acknowledged it was investigating strategic alternatives in the wake of a going-private transaction proposed by investor Leonard Green & Partners.

BJ’s officials in a conference call discussing quarterly results Wednesday did not address the latter issue but said savings derived from the store closures and corporate restructuring — along with a $5 increase in annual membership fees introduced in January — would support profit growth in 2011.

For the fiscal year, BJ’s reported $95 million in earnings — a 27.6% decrease — on sales of $10.6 billion. Sales improved by 8.3%, with annual comps growing by 2% excluding gasoline.

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