Cheap gas burns away BJ's Wholesale Club's profits
Cheaper fuel may be good for drivers, but it's hurting sales numbers at the warehouse clubs, which sell lots of gas. BJ's Wholesale Club (BJ), this morning announced its results beat expectations, but the nation's third-largest warehouse club chain cut its guidance for the rest of the year, blaming falling gas prices.
BJ's reported net income of $35.1 million, or 64 cents per share, down 3.8 percent from the same quarter last year. Sales for the second quarter dropped 5.2 percent to $2.51 billion and comparable sales dropped 7.7 percent. Most of the drop was blamed on gas sales, which fell 10.6 percent for the quarter; sales of other merchandise were up 2.9 percent.