BJ's Wholesale Club, Inc. Reports Record Financial Results: Fourth Quarter Earnings Per Share Up 17.5%, Full Year EPS Increased by 20.4%.

Business Editors

NATICK, Mass.--(BUSINESS WIRE)--March 6, 2001

BJ's Wholesale Club, Inc.(NYSE:BJ) today reported that net income for its fourth quarter ended February 3, 2001 rose 15.0% to $54.8 million, or $.74 per diluted share, from $47.7 million, or $.63 per diluted share, recorded in last year's fourth quarter.

Net income for the fiscal year rose 18.3% to $131.5 million, or $1.77 per diluted share, versus $111.1 million, or $1.47 per diluted share, recorded last year.

Net sales for this year's fourteen-week fourth quarter rose by 18.1% to $1.5 billion, compared with $1.3 billion recorded last year. Comparable club sales on a fourteen-week basis rose 3.2% year-to-year. For the full year, which included fifty-three weeks, net sales increased 17.3% to $4.8 billion versus $4.1 billion recorded in last year's fifty-two week period. Comparable club sales on a fifty-three week basis rose 5.1%.

Operating income in the fourth quarter increased by 14.8% to $87.1 million versus $75.9 million recorded last year. For the year, operating income rose 17.1% to $207.9 million, compared with $177.5 million last year.

Jack Nugent, president and chief executive officer, commented, "BJ's financial performance reflects continued strong sales in both our new and comp clubs, growing membership, which was up 13.5% for the year, and continued attention to expense control throughout our operations. We note with pride that last year was BJ's tenth consecutive year of improved profitability."

Conference Call on Fourth Quarter and Fiscal Year Financial Results

As previously announced, BJ's management will hold a conference call to discuss fourth quarter and full year financial results for the periods ended February 3, 2001. The call is scheduled to begin at 8:30 a.m. Eastern Time, today, March 6, 2001. This conference call will be broadcast live on BJ's web site; it will be directly accessible as follows: www.bjsinvestor.com/medialist.cfm. Replays will be available at the same web address until March 14, 2001. BJ's press releases and filings with the Securities and Exchange Commission are available on the Internet at www.bjs.com.

BJ's Wholesale Club, Inc. and Consolidated Subsidiaries

STATEMENTS OF INCOME (Unaudited)
(Dollars in Thousands Except Per Share Amounts)

                         Quarter Ended          Fiscal Year Ended
                    February 3,  January 29,  February 3,  January 29,
                       2001         2000         2001          2000
                    (14 weeks)   (13 weeks)   (53 weeks)    (52 weeks)

Net sales          $ 1,478,441  $ 1,251,387  $ 4,828,273   $ 4,115,825
Membership fees and
 other                  27,587       24,246      103,822        90,422
  Total revenues     1,506,028    1,275,633    4,932,095     4,206,247
Cost of sales,
 including buying
 and occupancy costs 1,318,381    1,115,645    4,376,451     3,725,638
Selling, general and
 administrative
 expenses               98,821       81,697      339,305       293,538
Preopening expenses      1,688        2,377        8,471         9,536
Operating income        87,138       75,914      207,868       177,535
Interest income, net     1,962        1,836        5,955         3,785
Income before
 income taxes           89,100       77,750      213,823       181,320
Provision for
 income taxes           34,304       30,089       82,322        70,171
Net income         $    54,796  $    47,661  $   131,501   $   111,149

Net income per common share:
 Basic             $      0.76  $      0.65  $      1.80   $      1.51
 Diluted           $      0.74  $      0.63  $      1.77   $      1.47

Number of common shares for earnings
 per share computations:
  Basic             72,423,119   73,521,394   72,870,668    73,657,016
  Diluted           73,837,113   75,359,816   74,380,544    75,391,489

Clubs in operation -
 end of period             118          107


BJ's Wholesale Club, Inc. and Consolidated Subsidiaries

CONDENSED BALANCE SHEETS (Unaudited)
(Dollars in Thousands)
                                            February 3,  January 29,
                                               2001         2000
ASSETS
Current assets:
 Cash and cash equivalents                 $  120,392   $  118,008
 Accounts receivable                           55,250       51,998
 Merchandise inventories                      495,285      446,771
 Current deferred income taxes                  7,677        5,995
 Prepaid expenses                              15,967       15,482
    Total current assets                      694,571      638,254
Property, net of depreciation                 523,914      480,062
Property under capital leases,
 net of amortization                            1,038        1,204
Other assets                                   14,211       11,499

TOTAL ASSETS                               $1,233,734   $1,131,019

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                          $  335,060   $  346,111
 Accrued expenses and other
  current liabilities                         179,583      158,667
    Total current liabilities                 514,643      504,778
Long-term obligations under capital leases      1,828        2,050
Other noncurrent liabilities                   44,453       38,431
Deferred income taxes                           7,895        8,362
Stockholders' equity                          664,915      577,398
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,233,734   $1,131,019


BJ's Wholesale Club, Inc. and Consolidated Subsidiaries

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in Thousands)
                                               Fiscal Year Ended
                                            February 3,  January 29,
                                              2001          2000
                                            (53 weeks)   (52 weeks)
CASH FLOWS FROM OPERATING ACTIVITIES
 Net income                                 $ 131,501    $ 111,149
 Depreciation and amortization                 54,953       46,476
 Deferred income taxes                         (2,149)       2,426
 Decrease (increase) in merchandise
  inventories, net of accounts payable        (59,565)      13,540
 Other                                         30,937       32,196
 Net cash provided by operating activities    155,677      205,787

CASH FLOWS FROM INVESTING ACTIVITIES
 Purchase and sale of marketable
  securities, net                                --            100
 Property additions                           (98,680)     (87,475)
 Property disposals                               301          125
 Net cash used in investing activities        (98,379)     (87,250)

CASH FLOWS FROM FINANCING ACTIVITIES
 Repayment of long-term debt                     --        (30,000)
 Purchase of treasury stock                   (64,346)     (35,024)
 Proceeds from sale and issuance
  of common stock                               9,659        7,712
 Other                                           (227)        (205)
 Net cash used in financing activities        (54,914)     (57,517)

Net increase in cash and cash equivalents   $   2,384    $  61,020

NOTE TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. Certain amounts in the prior year's financial statements have been
reclassified for comparative purposes.