BJ's Wholesale Club Holdings Inc logo

BJ - BJ's Wholesale Club Holdings Inc News Story

$45.2 0.5  1.1%

Last Trade - 16/04/21

Sector
Consumer Cyclicals
Size
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  urn:newsml:reuters.com:*: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
margins
    ** 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
supplies
    ** 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)
 ((Praveen.Paramasivam@thomsonreuters.com))
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.