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BJ's Wholesale Posts Record Revenue as Digital Sales Jump 300%

BJ's Wholesale Club posts record fiscal second-quarter sales as consumers stock up on essential goods during the pandemic.

BJ's Wholesale Club  (BJ) - Get BJ's Wholesale Club Holdings, Inc. Report on Thursday posted record fiscal second-quarter sales and earnings that blew past analysts’ forecasts as consumers flocked to the retailer's stores re-opened stores to stock up on essential goods during the pandemic.

The Westborough, Mass.-based company said it earned $107.5 million, or 77 cents an adjusted share, in the fiscal quarter ended Aug. 1, almost double the $55 million, or 39 cents an adjusted share, it earned in the comparable year-ago quarter. Analysts polled by FactSet had been expecting earnings of 60 cents a share.

Sales rang in at $3.9 billion, up from $3.3 billion a year ago and ahead of analysts’ forecasts of $3.7 billion. Same-store sales, a key metric among retailers, rose by 24.2%, including e-commerce growth of more than 300%, the company said. Including gas sales, same-store sales rose by 17.2%.

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The results reflect the fissure emerging between retailers like BJ’s, Target  (TGT) - Get Target Corporation Report, Walmart  (WMT) - Get Walmart Inc. Report, Costco  (COST) - Get Costco Wholesale Corporation Report and others that consumers have continued to rely on for essential goods through the coronavirus pandemic, and others like Neiman Marcus, Macy's  (M) - Get Macy's Inc Report, Lord & Taylor and Tailored Brands  (TLRD) - Get Tailored Brands, Inc. Report, who have struggled to get consumers to open their pocketbooks for things like clothing and accessories.

“We delivered another remarkable quarter with strong comp growth and record profitability,” CEO Lee Delaney said in a statement, noting the company is “extremely well positioned to continue to win as we invest in digital capabilities, membership, assortment, marketing and geographic expansion to further accelerate this transformation.”

During the quarter, BJ’s repurchased 924,282 shares of its common stock, totaling $34.1 million. In the first half of fiscal 2020, the company repurchased 1,099,282 shares of common stock, totaling $38.1 million.

Shares of BJ’s were down 0.15% at $43.36 in trading on Thursday.