BJ's Wholesale Club 1Q net income up on gas sales

[May 19, 2010]  NATICK, Mass. (AP) -- BJ's Wholesale Club says its first-quarter net income rose 7 percent, partly helped by gasoline sales.

The wholesale club operator also lifted its full-year earnings guidance.

BJ's and its rivals saw their popularity soar during the recession as shoppers headed there for food and other necessities. But consumers shied away from higher-margin nonessential purchases.

BJ's says its net income rose to $26.1 million, or 49 cents per share, for the three months ended May 1. That was six cents a share above the average analyst estimate.

Its says its overall revenue including membership fees rose 13 percent to $2.6 billion.

Revenue at warehouse clubs open at least a year climbed 7.8 percent including gasoline sales and 4.2 percent without it.

[Associated Press]

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.