Warehouse-club operator BJ's Wholesale Club Inc. said Wednesday fiscal third-quarter profit rose 24 percent, helped by sales of gasoline and shoppers hunting for bargains.
The company also raised its outlook for the year.
Profit for the three months ended Nov. 1 rose to $28.2. million, or 48 cents per share, from $22.7 million, or 35 cents per share, a year earlier. Results include a penny-per-share charge related to closing a store in Greenville, S.C.
The Natick, Mass.-based company, one of the few retailers benefiting from a weak economy as consumers turn to discounters for deals on basics, said revenue rose 13 percent to $2.46 billion from $2.17 billion.
Analyst polled by Thomson Reuters, on average, expected a profit of 46 cents per share on revenue of $2.45 billion. Analysts estimates typically exclude one-time items. Earlier this month, BJ's raised its earnings outlook for the quarter.
Sales in stores open at least one year, a key retail metric known as same-store sales, rose 11.9 percent, or 6.6 percent excluding gas.
Gasoline income exceeded the company's expectations by 17 cents per share, but that was partly offset by unplanned expenses related to severance costs and an adjustment to the company's reserve for state sales-tax audits, as well as expenses for higher-than-planned bonus accruals.
BJ's Wholesale raised full year guidance to $2.20 to $2.30 per share, from a range given in August of $2.10 to $2.20 per share. Analysts predict a profit of $2.21 per share.
For the year ending Jan. 30, 2010, the company expects a profit of $2.27 to $2.39 per share, while analysts expect a profit of $2.30 per share.
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