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Summary
- Sales, excluding gasoline, increased marginally by 0.3% in Q1, compared to the year-ago period.
- The retailer has a strong presence on the US eastern coast; it currently has 221 clubs and 151 BJ's gas stations in 17 states.
- Gross profit decreased to US$726.7 million from US$736.7 million in the year-ago quarter.
The stock of BJ's Wholesale Club (NYSE:BJ), one of America’s top membership-only warehouse clubs, fell nearly 5% after it reported poor first-quarter earnings on Thursday, May 20.
The stock was trading at US$46.16, down 4.98%, at the market close after the results.
The retailer has a strong presence across the eastern board with 221 clubs and 151 BJ's gas stations. It has a market cap of around US$6.33 billion.
BJ’s First Quarter Performance
Sales, excluding gasoline, increased marginally by 0.3% during the quarter, compared to the same period a year ago. Gasoline sales decreased by 5% compared to the first quarter of 2020.
Sales figures for the 13 weeks ending May 1, 2021, was around US$3.78 million, up 1.7%, against US$3.71 million in the previous quarter a year ago.
Gross profit decreased to US$726.7 million from US$736.7 million YoY.
General and administrative expenses rose to US$599.9 million in comparison to US$590.4 million in the first quarter of 2020. Expenditures included US$17.5 million in stock-based compensation.
Operating income decreased by US$126.3 million, including US$2.3 million of severance charges, against US$143.8 million in the first quarter of 2020. Income tax expenses were US$25.4 million compared to US$26.2 million in the corresponding quarter of 2020.
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Source: Pixabay.
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BJ’s Latest Initiatives
BJ plans to start EBT (Electronic Benefits Transfer) payments for SNAP-eligible items (Supplemental Nutrition Assistance Program) for both in-club and pickup orders in Florida and North Carolina. It has partnered with USDA’s Food & Nutrition Services and FIS’ Worldpay to add SNAP EBT into its system.
Its new online platform, Optical.BJs.com, offers shoppers to purchase various eyewear products, such as sunglasses, frames, single vision eyewear, and contact lenses. It offers clients the ease of shopping from the comfort of their home.
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BJ’s Wholesale Club has integrated with Citizen, a payment method, to support consumer financing. Citizens Pay will soon be available to members of BJ to pay for expensive purchases, such as television sets, home appliances and furnishings, with low monthly payments.
