NATICK, Mass. — Unseasonably cool and rainy weather in the Northeast dampened quarterly sales results for BJ's Wholesale Club here, although profits were hotter than expected, the retailer said yesterday.
BJ's navigated slower consumer spending by making progress in expense control and seeing some gross margin benefit as a result of deflation in some food categories, officials said in a conference call yesterday.
Specifically, BJ's was able to hold prices in deflationary categories like gasoline and meat until supermarket channel competitors reacted, Laura Sen, chief executive officer, told analysts in a conference call.
"When the cost of goods drop, sometimes the competition chooses to hold retail a little higher than they might otherwise do it, and that benefits us," Sen explained. "And we will follow rather than lead down, and that's a help to gross margins."
BJ's reported net earnings of $35.1 million, or 64 cents per share, for the second quarter, which ended Aug. 1 — down 3.6% from the same period last year but at the high end of the company's guidance for the quarter. Sales of $2.5 billion decreased by 5.2%, and comparable-store sales fell by 7.7%. Excluding gasoline, comps improved by 2.9%.
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