BJ’s Wholesale Club will continue to expand its private label products to new categories and increase shelf space for apparel, while adding outdoor products and tools by Q4, company executives told analysts in releasing the retailer’s first earnings report since its IPO in July.

The 215-store chain’s private labels currently include Wellsley Farms (coffee, dairy, ready-to-eat meals) and Berkley Jensen (vitamins, diapers, dress shirts, socks); private label goods account for more than 20% of its revenue, CEO Christopher Baldwin said. But unlike many retailers, BJ’s under Baldwin actually reduced the number of private label brands to two – Wellsley Farms (food) and Berkley Jensen (non-food) – from 13 several years ago.

The company swung to a $5.6 million net loss from a $19 million profit a year earlier in Q2 ended Aug. 4, a quarter that marked its return as a publicly-traded company. The loss was partly related to increased expenses, including $49 million in equity awards to executives tied to the IPO and a $19 million charge for early extinguishment of debt.

Revenue rose 4.3% to $3.2 billion on a 5% increase in same-store sales (2%, if gasoline is excluded).

BJ’s plans to open 10-15 stores annually through 2023, including new locations in Roanoke, VA and Clearwater, FL this fall.

Contact:

BJ’s Wholesale Club, Robert Eddy,774-512-6186