BJ's Wholesale Club Sees Records in Q3 2020 Report
WESTBOROUGH, MA - With a year as topsy-turvey as the one we’ve had, it’s always grounding to hear that the industry is carrying on as best it can. The retail landscape has had its fair share of surprises, and BJ’s Wholesale Club Holdings is celebrating a positive one. Recently, the retailer announced a record third quarter fiscal 2020 result, citing comparable club sales, excluding gasoline sales, which increased by 18.5 percent.
“The third quarter was another remarkable quarter with robust comp growth, significant market share gains, and record profitability. As we look ahead, we are confident our business will continue to thrive given the structural shift in consumer behavior; our market share gains; and our strategic investments in digital capabilities, membership, assortment, marketing, and geographic expansion,” said Lee Delaney, President and Chief Executive Officer. “Our team members across our business are working hard to execute at the highest standards and meet our members’ increased demand for our products and services. We remain grateful for their continued dedication and hard work in helping us drive industry-leading results.”
As noted in its release, the wholesaler’s gross profit increased to $743.3 million in the third quarter of fiscal 2020 from $617.6 million in the third quarter of fiscal 2019. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, increased by 10 basis points over the third quarter of fiscal 2019. Continued execution of the company’s category profitability improvement was offset by distribution costs associated with the coronavirus pandemic.
Other key takeaways for the third quarter of fiscal 2020 include:
- Income from continuing operations increased by 122.6 percent year-over-year to $122.9 million
- Adjusted EBITDA increased by 57.1 percent year-over-year to $242.2 million
- Net cash provided by operating activities was $802.0 million and free cash flow was $675.1 million
- Operating income increased to $190.4 million, or 5.1 percent of total revenues compared to $100.9 million, or 3.1 percent of total revenues in the third quarter of fiscal 2019
For more information, click here for the release.
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