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BJ - BJ's Wholesale Club Holdings Inc News Story

$45.2 0.5  1.1%

Last Trade - 16/04/21

Consumer Cyclicals
Large Cap
Market Cap £4.45bn
Enterprise Value £5.23bn
Revenue £11.19bn
Position in Universe 1241st / 6850

BUZZ-BJ's Wholesale Club: Down as membership fee income misses guide; sees costs soaring in Q4

Thu 19th November, 2020 4:39pm
** Members-only warehouse club operator's  BJ.N  shares fall
as much as 6.5% to $40.21
    ** BJ says its membership fee income, or MFI, rose 11%
during Q3 versus its outlook of an about 12% growth*:nBw9M3Sdta
    ** There was a touch of a slowdown, and we did miss our
(MFI) guide by a couple hundred thousand dollars - CFO Bob Eddy
tells analysts
    ** Membership fees typically account for a major chunk of
profits at warehouse chains, as they sell items for razor-thin
    ** Pandemic-related costs to be $30 mln-$35 mln in Q4 versus
about $17 mln in Q3 - BJ
    ** However, BJ tops Refinitiv IBES estimates for Q3 results
on strong demand for fresh produce, beverages and cleaning
    ** We question the long-term sustainability of recent sales
growth (at BJ) with a handful of COVID-19 vaccines on the
horizon - CFRA Research analyst Garrett Nelson
    ** BJ still up about 87% so far YTD

 (Reporting by Praveen Paramasivam in Bengaluru)
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