BJ's Net Falls 81 Percent in Fourth Quarter
March 2, 2011,
WESTBOROUGH, Mass.-Rising expenses, including costs related to the closure of some of its clubs, slashed BJ's Wholesale Club's fourth-quarter net income by 81 percent, to $10.2 billion.
Selling, general and administrative expenses jumped 12 percent in dollars and 37 basis points as a percentage of sales, to 8.2 percent. BJ's bottom line was also hurt by $41.1 million in charges from club closures, restructuring activities and asset impairment. Its gross margin dropped 159 basis points to 11.2 percent due to a 7.4 percent rise in cost of sales.
For the fiscal year, BJ's reported net income of $95 million, down 28 percent from the prior fiscal year. Total revenues rose 8.2 percent to $10.9 billion.