BJ'S Wholesale Club Reports March Sales: Reduces Earnings Guidance for First Quarter, Reaffirms Earnings Guidance for Full Year.NATICK, Mass. -- BJ's Wholesale Club BJ's Wholesale Club, Inc. NYSE: BJ is a membership-only warehouse club chain operating in the East Coast of the United States, as well as in the state of Ohio. History , Inc. (NYSE NYSE See: New York Stock Exchange : BJ) today reported that sales for March 2005 increased by 7.0% to $663.9 million from $620.4 million in March 2004. Comparable club sales increased by 3.0% for the month of March, including a contribution from sales of gasoline of approximately 50 basis points. Last year the Company reported a comparable club sales increase of 7.0% for March with no impact from sales of gasoline. While gross merchandise margin rates quarter-to-date were on plan, the Company now expects to report earnings in the range of $.22 to $.25 per diluted share for the first quarter of 2005 due to a combination of lower than planned sales and lower than planned income from gasoline sales. Previous guidance was for earnings in the range of $.25 to $.27 per diluted share. The Company reaffirmed its full year earnings guidance of $1.85 - $1.93 per diluted share for 2005. BJ's president and chief executive officer, Mike Wedge, said, "Comparable club sales results for the month of March reflected the impact of snow storms, rain and cold weather during weeks one, two and four, affecting more than half of the chain. Sales of summer seasonal items, lawn & garden and patio furniture pa´ti`o fur´ni`ture 1. Furniture such as chairs, tables, settees or loungers, suited for use on a patio , i.e. such that will not be damaged by exposure to rain, sun or other outdoor elements. declined by approximately 30% versus last year. On a comparable club basis, sales of food increased by approximately 7% and general merchandise decreased by approximately 3%."
Sales Results for March
($ in thousands)
Five Weeks Ended % Change
April 2, April 3, Net Comp.
2005 2004 Sales Sales
$ 663,880 $ 620,406 7.0% 3.0%
Nine Weeks Ended % Change
April 2, April 3, Net Comp.
2005 2004 Sales Sales
$ 1,200,011 $ 1,105,611 8.5% 4.7%
Excluding sales of gasoline, the average transaction amount for the month of March rose by approximately 2% and traffic was essentially flat to last year. Comparable club sales results by week were as follows: In week one, an increase of 4% reflected a severe snow storm affecting the Northeast, Mid-Atlantic and Georgia; in week two, an increase of 1% reflected two major storms in the Northeast, Mid-Atlantic and Georgia; in week three, the week before Easter, an increase of 10% reflected a combination of more seasonable Within a reasonable time; timely. The term seasonable is usually used in connection with the performance of contractual obligations that must be completed "seasonably." The facts and circumstances of each case define a reasonable period of time. weather chain-wide and recovered sales from weeks one and two; in week four, an increase of 15% reflected the Easter calendar shift from week two of April last year, partially offset by snow in the Northeast; and in week five, a decrease of 14% reflected one less day of sales versus last year, due to Easter Sunday club closings, as well as cold and rainy weather in the Northeast for much of the week. Sales results by major region also reflect the impact of adverse weather versus last year. Comparable club sales increased by 2% in upstate New York Upstate New York is the region of New York State north of the core of the New York metropolitan area. It has a population of 7,121,911 out of New York State's total 18,976,457. Were it an independent state, it would be ranked 13th by population. , 1% in New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. , 1% in Metro New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , and less than 1% in the Mid-Atlantic. In the Southeast, the region least affected by a difference in weather conditions versus last year, comparable club sales increased by 12%. Categories with strong comparable club sales increases versus last year included beauty care, coffee, dairy, domestics, milk, prepared foods, produce, snacks, soda and water, trash bags, televisions and toys. Weaker categories versus last year included lawn care, summer seasonal, residential furniture, best seller books and film. Sales also declined in categories that were contracted or eliminated during the spring of 2004, including automotive, major appliances A major appliance is usually defined as a large machine which accomplishes some routine housekeeping task, which includes purposes such as cooking, food preservation, or cleaning, whether in a household, institutional, commercial or industrial setting. , office supplies Office supplies is the generic term that refers to all supplies regularly used in offices by businesses and other organizations, from private citizens to governments, who works with the collection, refinement, and output of information (colloquially referred to as "paper work"). , sporting goods Noun 1. sporting goods - sports equipment sold as a commodity commodity, trade good, good - articles of commerce sports equipment - equipment needed to participate in a particular sport and home storage. The company ended the month with 158 clubs, including two ProFoods Restaurant Supply clubs, and 81 gas stations. In 2005, the company plans to open a total of 8 to 9 clubs, 8 gas stations and 20 pharmacies. For the month of April, the Company is projecting a comparable club sales increase of 4-7%, including a slight contribution from sales of gasoline. For the month of April last year, the company reported a comparable club sales increase of 5.4%, including a contribution from sales of gasoline of approximately 80 basis points. About BJ's BJ's introduced the wholesale club concept to New England in 1984 and has since expanded to become a leading warehouse chain in the eastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company currently operates 156 BJ's clubs and 81 gas stations compared with 150 clubs and 78 gas stations one year ago. The Company also operates two ProFoods Restaurant Supply clubs in the Metro New York market. BJ's press releases and filings with the SEC are available on the Internet at www.bjs.com. Conference Call Information for First Quarter Financial Results BJ's plans to announce financial results for the first quarter on May 17, 2005, at 7:00 a.m. Eastern Time. At 8:30 a.m. Eastern Time, also on Tuesday, May 17, 2005, BJ's management plans to hold a conference call to discuss financial results for the first quarter of 2005. To access the webcast (including financial and other statistical information being presented, as well as reconciliation information with respect to any non-GAAP financial measures being presented), visit www.bjsinvestor.com/medialist.cfm to hear the call live or to listen to an archive of the call, which will be available for approximately one quarter following the call. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Statements contained in this press release about expected earnings, comparable club sales increases, planned club openings and all other statements that are not purely historical are forward-looking statements for purposes of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions under The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Actual results may differ materially from those indicated by these forward-looking statements. Factors that may cause or contribute to such differences include, without limitation, levels of customer demand, economic and weather conditions and state and local regulation in the Company's markets, and competitive conditions. These factors are discussed in the Company's Annual Report on SEC Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended January 29, 2005. Any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any obligation to do so, even if our estimates change. |
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