Belpointe Chief Market Strategist David Nelson and Wealth Enhancement Group Senior Vice President Nicole Webb on investing in coronavirus markets.
The profits of BJ’s Wholesale Club Inc. grew 96% in the three months through June, when members ran out of goods while hiding at home during the COVID-19 pandemic.
The Westborough, Mass.-Based warehouse association earned $ 106.6 million, or an adjusted 77 cents per share, as revenue grew 18% year-over-year to $ 3.95 billion. The results outpaced the adjusted earnings of 60 cents a share and revenue of $ 3.74 billion that Wall Street analysts surveyed by Refinitiv expected.
| Ticker | Security | Last | Change | Change% |
|---|---|---|---|---|
| BJ | BJS WHSL CLUB HLDGS INC | 44.46 | +1.06 | + 2.44% |
“We delivered another remarkable quarter with strong comp growth and record profitability,” CEO Lee Delaney said in a statement. “We are extremely well positioned to continue to win, as we invest in digital capabilities, membership, range, marketing and geographic expansion to further accelerate this transformation.”
Sales with digital enabled grew more than 300% in the quarter, as members shop more from the comfort of their own homes, and this helped increase club sales by 24% compared to last year.
Improved profitability and sales performance in the company’s general merchandise business were partially offset by increasing commodity costs, mostly meat, and expenses related to COVID-19.
BJs invested $ 31.4 million in salaries and bonuses for frontline workers during the quarter.
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Shares rose 91% this year through Wednesday, outperforming the S&P 500’s gain of 4.46%.
