BJ's Wholesale quadruples its quarterly profit

BJ’s Wholesale Club Inc.’s fourth-quarter profit quadrupled, beating Wall Street expectations, as the nation’s third-biggest warehouse club benefited from a retail environment that is favoring discount stores.

Natick-based BJ’s also raised its earnings outlook for the full year, in part because inflation could boost business at discounters as shoppers look for bargains.

The company's shares were up more than 6 percent to $35.32 at 2:15 this afternoon.

BJ’s said that strong January sales, higher profit margins and gasoline sales, and lower-than-expected expenses lifted fourth-quarter net income to $50.2 million, or 80 cents per share. That’s up from $11.9 million, or 18 cents, in the year-earlier.

The latest quarter’s profit beat the consensus forecast of 74 cents a share by analysts surveyed by Thomson Financial.

Quarterly revenue rose 2 percent to $2.48 billion.

BJ’s operates 177 warehouse clubs in 16 Eastern states.

BJ’s raised the guidance it offered in November that predicted fiscal 2008 earnings of about $1.90 per share. It now expects $1.98 to $2.08 per share, or about $118 million to $123 million.

The company expects total sales to rise 6.5 to 8.5 percent this year.
(AP)