BJ Sales Better Than Expected, Citigroup Reports

Citigroup reports that BJ's Wholesale Club, Inc.'s (NYSE: BJ) Dec. SSS of +3.8%, above Citigroup's (-1) to 1% estimate and consensus of +4.2%, and vs. +4.8% LY.

“The contribution from sales of gas of was 2.4% while merchandise comparable club sales increased by approx,” Citigroup writes. “1.4%. More favorable weather conditions YOY had a positive impact on SSS of approx. 1%.

“Recall, a severe winter storm in the NE on the weekend before Christmas LY had a negative impact on merchandise comparable club sales of (-2.0)% to (-2.5)%.”

“We raised our 4Q EPS estimate for BJ to $0.95, up from $0.93 prev. based on QTD trends,” Citigroup adds. “We have a Hold (2H) rating for BJ; TGT (1M rating) is one of our top picks.”

BJ's Wholesale Club closed Wednesday at $45.96.