Shares of BJ’s Wholesale Club (BJ) – Get Report on Thursday advanced after the membership-based retailer beat analyst estimates for both earnings and revenue as shoppers flocked to warehouse clubs amid the coronavirus pandemic.
BJ’s stock at last check jumped 4.6% to $30.30 after the Westborough, Mass., retailer reported net income of $95.7 million, or an adjusted 69 cents a share for the first quarter ended May 2.
That was up from net of $35.8 million, or 25 cents a share, in the year-earlier quarter. The adjusted share figure was double the 34-cent-a-share estimate of analysts surveyed by Zacks Investment Research.
BJ’s reported revenue for the quarter of $3.8 billion, a nearly 21% increase over the year-earlier period’s $3.14 billion in revenue.
BJ’s revenue for the first quarter also beat the estimate of analysts polled by FactSet, who had forecast $3.32 billion.
Excluding gasoline, comparable-club sales surged 27%, with digitally enabled sales more than quadrupling, the company said in a statement.
BJ’s reported a more than $89 million increase in overhead costs during the quarter, to $590.4 million from $501.2 million during the year-earlier quarter.
A portion of that increase was due to costs related to the pandemic, with the company reporting $51 million in wages and bonuses, including an across the board pay hike of $2 an hour.
BJ’s also reported an increase in membership fee income as well, rising 8.4% to $79.5 million for the quarter.
BJ’s shares are up 25% in 2020 through the close of Wednesday’s trading. The company operates 218 stores in 17 states.
