BJ’s Wholesale profit, revenue and same-store sales beat expectations, but stock pulls back

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BJ’s Wholesale Club Holdings Inc. reported Thursday fiscal third-quarter profit and sales that rose above expectations, amid “significant market share gains.” The stock, however, fell 2.3% in premarket trading, after soaring 14.1% over the past eight sessions leading up to the earnings report. Net income rose to $122.8 million, or 88 cents a share, from $55.1 million, or 40 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earning per share grew to 92 cents from 41 cents, beating the FactSet consensus of 65 cents. Total revenue increased 15.6% to $3.73 billion, above the FactSet consensus of $3.67 billion, as same-store sales growth of 18.5% beat expectations of a 15.5% rise. The company said it spent $50 million to buy back 1.2 million shares during the third quarter. BJ’s did not provide financial guidance. “The third quarter was another remarkable quarter with robust comp growth, significant market share gains and record profitability,” said Chief Executive Lee Delaney. “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.” The stock has run up 89.1% year to date through Wednesday, while the SPDR S&P Retail ETF has advanced 22.5% and the S&P 500 has gained 10.4%.
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