BJ’s net income up, raises guidance
Natick, Mass. -- BJ's Wholesale Club reported third-quarter earnings Wednesday that beat Wall Street expectations on improved revenue from gas and merchandise rose. The warehouse club operator raised its earnings guidance for the year.
BJ’s net income rose to $23 million for the three months ended Oct. 30, up from $17.4 million a year ago.
Revenue rose 5% to $2.63 billion from $2.51 billion last year, just shy of the $2.64 billion expected by analysts. Same-store sales rose 2.5%, or 1.5% excluding gas sales.
There has been speculation that BJ's might put itself up for a potential auction or seek other business alternatives since Leonard Green & Partners bought a nearly 10% stake in the company in July and said it was going to look for ways to improve shareholder value. Rumors heated up last week after a report said BJ's had hired Morgan Stanley as a financial adviser in a potential auction to sell itself off after receiving an offer from Leonard Green.