BJ’s Wholesale Club Progresses In Q2

BJ’s Wholesale Club reported solid comparable store sales during its second quarter after recently going public.

For the second quarter ended August 4, net sales increased 4.3% to $3.2 billion compared to $3.1 billion in the second quarter of fiscal 2017. Comparable sales increased 5% compared to the second quarter of fiscal 2017. Excluding the impact of gasoline sales, merchandise comparable sales for the quarter increased 2%.

Net loss in the second quarter was $5.6 million, or $0.05 per diluted share, compared to net income of $19.7 million, or $0.22 per diluted share, in the second quarter of fiscal 2017. Adjusted net income was $43.3 million, or $0.31 per diluted share, compared to $30.5 million, or $0.22 per diluted share, in the second quarter of fiscal 2017.

Operating income was $38.7 million compared to $74.8 million in the second quarter of fiscal 2017. Operating income excluding charges associated with stock-based compensation related to the IPO, IPO-related costs, management fees and compensatory payments related to stock options was $89.7 million, up from $78.9 million in the second quarter of fiscal 2017.

“We are pleased with our second quarter results, which exceeded our expectations,” said Christopher Baldwin, chairman and CEO, BJ’s Wholesale Club. “We’re still in the very early stages of our transformation. Our progress is accelerating as we work to attract and retain members, get them shopping and make it more convenient to shop at BJ’s. As a result of our performance, we have increased our expectations for the full-year.”

On July 2, the company consummated its IPO at an offering price to the public of $17.00 per share. The company said it sold 43.1 million shares of its common stock in the IPO, including the additional 5.6 million shares purchased by the underwriters in the exercise of their overallotment option, resulting in total net proceeds of $691 million after deducting underwriters’ discounts and commissions. The company used the net proceeds from the IPO to repay the $623.2 million principal amount of indebtedness plus $10.2 million of accrued and unpaid interest and prepayment premium under the company’s second lien term loan.