BJ'S Wholesale Club Announces Q-4 and Full Year Results for 2008

Provides Earnings Guidance for 2009

• Press Release
• Source: BJs Wholesale Club, Inc.
• On 7:00 am EST, Wednesday March 4, 2009

NATICK, Mass.--(BUSINESS WIRE)--BJ’s Wholesale Club, Inc. (NYSE: BJ - News) today reported net income of $52.7 million, or $0.91 per diluted share, for the fourth quarter ended January 31, 2009. These results included post-tax income of $1.3 million, or $0.02 per diluted share, related to favorable state income tax audit settlements. Adjusting for the income tax audit settlements, on a non-GAAP basis, net income was $51.3 million, or $0.89 per diluted share.

For the fourth quarter ended February 2, 2008, net income was $50.2 million, or $0.80 per diluted share.

For the full year 2008, net income was $134.6 million, or $2.28 per diluted share. These results included, on a per diluted share basis, unusual income of $0.06 for favorable state income tax audit settlements, and unusual expense of $0.01 for the club closing reserve. Adjusting for the foregoing items, adjusted net income on a non-GAAP basis was $131.8 million, or $2.23 per diluted share for 2008.

For the full year 2007, net income was $122.9 million, or $1.90 per diluted share. These results included, on a per diluted share basis, unusual income of $0.05 for favorable state income tax audit settlements, $0.04 for a ProFoods lease reserve adjustment, and $0.01 from the sale of pharmacy assets during the first quarter. Adjusting for the foregoing items, adjusted net income on a non-GAAP basis was $116.3 million, or $1.80 per diluted share for 2007.

Net sales for the fourth quarter of 2008 rose by 3.2% to $2.5 billion and comparable club sales increased by 1.7%, including an unfavorable impact from sales of gasoline of 4.7%. Merchandise comparable club sales excluding gas increased by 6.4%.

Net sales for the full year 2008 increased by 11.5% to $9.8 billion and comparable club sales increased by 9.4%, including a favorable impact from sales of gasoline of 3.0%. Merchandise comparable club sales excluding gas increased by 6.4%.

During the fourth quarter of 2008, the Company repurchased 1.8 million shares of BJ’s common stock at an average cost of $31.12 per share, for a total expenditure of approximately $57 million. For the year, BJ’s repurchased 5.1 million shares of common stock at an average cost of $33.69 per share, for a total expenditure of approximately $170 million. As of January 31, 2009, the end of the fiscal year, approximately $209 million remained available for repurchase under the existing Board authorization. The Company subsequently spent approximately $70 million on share repurchases in February, 2009.

Outlook for 2009

For 2009, the Company is planning for net income of $123 to $129 million, or $2.26 to $2.36 per diluted share. The earnings per share estimate is based on fully diluted shares in the range of 54 to 55 million, and assumes total share repurchases of approximately $100 million.

BJ’s management will host a conference call today at 8:30 a.m. ET to discuss information included in this press release and related matters. The conference call will be available through webcast and replay from BJ’s investor relations website at http://www.bjsinvestor.com/events.cfm.

February, 2009 Sales Results

In a separate release, the Company also announced today its sales results for February 2009.

About BJ’s Wholesale Club

BJ’s introduced the wholesale club concept to New England in 1984 and has since expanded to become a leading warehouse chain in the eastern United States. The Company currently operates 180 BJ’s Wholesale clubs in 15 states. BJ’s press releases and filings with the SEC are available on the Internet at www.bjsinvestor.com.

Non-GAAP Measures

This press release includes the non-GAAP financial measure of adjusted net income. Management uses this non-GAAP measure internally in reviewing the Company’s performance and believes that the presentation of adjusted net income aids investors’ understanding of historical and expected financial results and in the comparability of financial information from period to period. Specifically, management believes that the income related to favorable income tax audit settlements and the expense related to the Company’s reserve for closed clubs in 2008, as well as the income tax audit settlements, the Pro Foods lease reserve adjustment and the sale of pharmacy assets in 2007, are outside the ordinary course of the Company’s business, and that such income and expense are not expected to recur. The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP.

Forward-Looking Statements

Statements contained in this press release that are not purely historical, including earnings guidance, are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements. Factors that may cause or contribute to such differences include, without limitation, levels of gasoline profitability, levels of customer demand, economic and weather conditions, state and local regulation in the Company’s markets, competitive conditions, success in settling lease obligations for closed clubs and credit and debit card claims, and other factors discussed in the Company’s Annual Report on SEC Form 10-K for the fiscal year ended February 2, 2008 and subsequent quarterly reports on SEC Form 10-Q for the fiscal year ended January 31, 2009. Any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimate as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so even if our estimates change.

BJ’s Wholesale Club, Inc.
Cathy Maloney, 508-651-6650
VP, Investor Relations
cmaloney@bjs.com