June same store sales down for BJ's Wholesale Club
07 Jul '06
3 min read
BJ's Wholesale Club Inc reported that sales for June 2006 increased by 3.6 percent to $825.0 million from $796.1 million in June 2005. On a comparable club basis, June sales decreased by 0.1 percent versus last year, including a contribution from sales of gasoline of 2.1 percent. Sales for the month of June were negatively impacted by record-breaking rainfall throughout most of the chain.
In 2005, the Company reported a comparable club sales increase of 4.3 percent for June, including a negative impact from sales of gasoline of 30 basis points.
Based on lower than planned sales in June, as well as lower than planned gasoline profitability in May and June resulting from steadily rising crude oil and wholesale gasoline prices, the Company now expects to report earnings in the range of $.37 to $.40 per diluted share for the second quarter of 2006. The Company's previous earnings guidance for the second quarter of 2006 was $.43 to $.47 per diluted share.
The Company provided the following additional information regarding June 2006 sales for BJ's Wholesale Club:
On a comparable club basis, sales increased in weeks one and four and decreased in weeks two, three and five. The decrease in week five was due primarily to the calendar shift in the July 4th holiday. The negative impact of the July 4th calendar shift on comparable club sales for the month was worth approximately 100 basis points.
By major region, comparable club sales decreased in New England, Metro New York and the Mid-Atlantic markets and increased in Upstate New York and the Southeast.