Warehouse club operator BJ's Wholesale Club said Tuesday its second-quarter profit rose 37 percent, the first quarterly boost in profits for the nation's No. 3 warehouse club since disappointing results last year toppled its chief executive.
The results, which beat Wall Street expectations, were driven by strong sales of perishable foods under Chief Executive Herb Zarkin's plan to reinvigorate BJ's product mix and merchandise presentation.
Natick, Mass.-based BJ's said net income grew to $36.3 million, or 55 cents per share, from $26.4 million, or 39 cents per share, a year ago.
The latest period's profit was boosted 9 cents per share by various one-time gains, compared with one-time charges of 2 cents per share in the year-ago period.
Not counting these items, the company would have earned 46 cents per share in the latest period, compared with 41 cents in the second quarter of 2006.
Analysts surveyed by Thomson Financial were expecting a profit of 41 cents per share in the latest period, on average.
Shares of BJ's rose $1.31, or 4.3 percent, to $32.10 in morning trading Tuesday.