Ahead of the Bell: BJ's Wholesale Club
© 2007 The Associated Press
NEW YORK — A JPMorgan analyst on Wednesday reiterated his "Overweight" rating on BJ's Wholesale Club Inc. and said the warehouse-club operator's turnaround efforts were on track.
BJ's Wholesale Club Inc. on Tuesday said net income rose 37 percent, ahead of analyst expectations, helped by strong sales of perishable foods. The news sent its shares up 3 percent on Tuesday.
Analyst Charles Grom said in a note to investors on Wednesday that initiatives begun by Chief Executive Herb Zarkin, who took the post in November, appear to be paying off. The overall number of products on shelves, or stock keeping units, and the number of private label brands have been reduced, Grom said.
Among other things, Zarkin has sought to cut the number of brands and sizes BJ's carries to open up shelf space for additional product lines.
"It appears that the turnaround effort at BJ's remains on track (if not ahead of plan)," Grom wrote.