News Breaks
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| 10:10 EDT |  | BJ |
| theflyonthewall.com: | BJ's Wholesale reports in line Q3 EPS, guides Q4 | | BJ's Wholesale Club (BJ) reported Q3 EPS of 45c, in-line with analysts' consensus estimate of 45c. Revenue was $2.51B, beating analysts' estimates of $2.48B and a 2% increase from 3Q08. Same-store sales for the quarter decreased 2.5%. On the earnings conference call, CEO Laura Sen said traffic grew by 5% in the quarter on top of a 5% increase in last year's Q3 and that food and consumables were the primary driver of sales in Q3. Looking ahead, the company forecast Q4 EPS 96c-$1.00 vs. estimates of 97c and revenue up 10.5%-12.5%. SSS for the quarter are expected to increase 5%-7%, but decrease 1%-2% for FY10. The FY10, the company sees net sales up 1.5%-2.5% over the prior year. Sen said that due to the uncertain economy and continuing impact of deflation, the company will get through Q4 before providing detailed guidance for FY10. She does expect that many of this year's trends will carry into next year, and BJ's should see strong increases in traffic and market share due to the operational and merchandising improvements that have been made in the business. Sen expects perishables deflation to cycle "at some point" in 1H10, which should help sales dollars growth. BJ's Wholesale shares are down 91c, or 2.5%, to $35.43 in mid-morning trading. :theflyonthewall.com |
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