BJ's Wholesale Club Digs Deeper Into the Grocery Sector
WESTBOROUGH, MA - The fresh grocery sector has caught BJ’s Wholesale Club’s eye as its next market conquest. In the wholesaler’s first quarter fiscal 2019 results, Chairman and Chief Executive Officer Christopher J. Baldwin revealed that BJ’s upcoming plans include expanding and improving its grocery offerings.
“The next place we're going is grocery… We've done changes to health and beauty and the next place to go is grocery…We feel really proud of the progress we've made in perishables with produce units growing,” Baldwin said on an earnings call with investors.
On the call, Baldwin also noted that membership levels are at “historic highs” as new members and renewals continue to increase. This, along with low prices and new-and-improved grocery services, is positioning BJ’s for steady growth, according to Baldwin.
“Our grocery and perishables business are key to delivering value to our members,” Baldwin added.
Additional highlights from the first quarter of 2019, according to a press release, also included the following:
- Net sales for the quarter increased 2.5% to $3.1 billion, compared to the first fiscal quarter in the prior year
- Comparable club sales excluding gasoline sales increased 1.9% for the fiscal quarter
- Income from continuing operations of $36.1 million for the fiscal quarter, compared with $14.3 million in the comparable prior year period.
- First quarter adjusted EBITDA of $124.1 million reflecting a 2.1% increase over the first quarter of fiscal 2018.
- Net income of $35.8 million, or $0.25 per diluted share, and adjusted net income of $36.7 million, or $0.26 per diluted share for the quarter
- Maintains outlook for fiscal 2019
“We are pleased with our solid start to the year,” said Baldwin. "We delivered merchandise comparable sales of 1.9%, improved margins and continued to grow earnings by executing against our strategic priorities. Looking forward, we continue to see momentum across our business and are encouraged by the opportunities ahead of us, as we continue to transform BJ's Wholesale Club."
In the press release, Baldwin also announced that the wholesaler has appointed Robert Steele as its new Lead Independent Director.
“His extensive experience and knowledge of our industry and business will be invaluable to our company,” Baldwin concluded.
To read the press release in its entirety, click here.
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