NATICK, Mass. — Citing "an intense level of price competition" from discounters and supermarkets, BJ's Wholesale Club here invested more heavily than expected in its own prices during the second quarter, causing margins and earnings to fall below expectations.
The retailer on Wednesday also adjusted its forecast for sales and earnings in the fiscal year, saying earnings would likely come in at $2.40 to $2.50 per share, down from a May forecast of $2.58 to $2.68. Sales growth was adjusted downward from 8% to 10% vs. earlier expectations of 9.2% to 11% growth.
Quarterly net income of $35.8 million, or 67 cents a share, was below analyst expectations of 73 cents. Sales of $2.7 billion improved by 8.6% with comparable sales excluding gasoline improving by 2.9%.
