BJ’s Q1 profit beats plan
Westborough, Mass. — BJ’s Wholesale Club reported Wednesday that profit for the quarter ended April 30 rose to $33.7 million, beating its guidance range of $29.5 million to $31.5 million.
Net sales for first quarter 2011 increased 10% to $2.77 billion and same-store club sales rose 6.3%.
Strong food sales help drive up BJ’s comps in Q1
WESTBOROUGH, Mass. — BJ’s Wholesale Club reported net income of $33.7 million, or 62 cents per diluted share, for the first quarter ended April 30. Results for the first quarter of 2011 exceeded the company’s guidance for net income in the range of $29.5 million to $31.5 million, or 54 cents to 58 cents per diluted share.
BJ’s president and CEO, Laura Sen, said, “BJ’s is off to a great start in 2011. Our stronger than expected performance for the first three months of 2011 reflects net sales above plan, continued margin expansion and excellent cost control. I am very proud of our team members in the field, distribution centers and home office for delivering another great quarter.”
Net sales for the first quarter of 2011 increased by 10% to $2.77 billion and comparable-club sales increased by 6.3%, including a contribution from gasoline sales of 3.9%. Merchandise comparable-club sales excluding gasoline increased by 2.4%.
Departments with the strongest comparable-club sales increases included bakery, dairy, deli, frozen, health & wellness, meat, milk, prepared foods, produce and small appliances. Weaker departments versus last year included apparel, books, cigarettes, diapers, prerecorded video and televisions.
For the year ending Jan. 28, 2012, the company now expects to report net income in the range of $147 million to $157 million, and earnings per diluted share in the range of $2.68 to $2.88. For the second quarter ending July 30, the company expects to report net income in the range of $40.5 million to $42.5 million and earnings per diluted share in the range of 74 cents to 78 cents.
Target Q1 profit up 2.7% on credit-card business gains
Minneapolis — Target Corp. on Wednesday reported that its net income in the first quarter rise 2.7% to $689 million, up from $671 million in the year-ago period. Its results, which beat Street expectations, were boosted by its credit-card business as sales came in weaker than expected.
Total revenue in the quarter, ended April 30, rose 2.2% to $15.9 billion.
Same-store sales rose 2%. Analysts expected revenue of $16.02 billion.
"Our first-quarter financial performance was the result of stronger-than-expected profitability in our credit-card segment, which offset the impact of weaker-than-anticipated sales in our retail segment," Gregg Steinhafel, Target’s chairman, president and CEO, said in a statement. He noted that shoppers remain "cautious" in their spending.
Target’s results came two days after hedge fund manager and activist investor William Ackman disclosed that he had sold his shares in the company.
In its credit-card sector, Target’s quarterly profit was $194 million, compared with $111 million in the last year’s quarter. Bad debt expense was $12 million in the period, down from $197 million in 2010.