The Associated Press August 5, 2010, 2:41PM ET

Warehouse club stock mixed after reports

Shares of the nation's warehouse clubs were mixed Thursday after B.J.'s Wholesale Club and Costco Wholesale Corp. said their sales climbed in July.

Costco sales at stores open at least a year were better than analysts expected, while B.J.'s fell short of forecasts.

Earlier Thursday, Costco said revenue at its stores that had been open at least a year rose 6 percent in July, helped by fuel sales and international revenue. The figure was 4 percent for stores open at least a year in the U.S. and 14 percent for stores abroad.

The comparison of sales at stores open at least a year is a key indicator of a retailer's performance because it excludes stores that open or close during the year.

Excluding gasoline sales, Costco's figure rose 4 percent.

Analysts surveyed by Thomson Reuters, on average, expected a 5.5 percent increase overall and a 4.7 percent increase excluding gasoline sales.

Costco's total sales for the four weeks that ended Aug. 1 rose 8 percent to $5.86 billion from $5.42 billion last year.

Meanwhile, B.J.'s revenue from stores open at least a year climbed 2.8 percent in July. Excluding gasoline sales, it rose 1.9 percent.

Analysts expected a 4.5 percent increase for B.J.'s, or 3.8 percent excluding gasoline sales.

B.J.'s net revenue for the month rose 6.6 percent to $770.3 million from $722.5 million in July 2009 as customers spent more money on cigarettes, drinks, housewares, produce, tires and water.

Costco shares were down 99 cents, or 1.7 percent, trading at $56.41 at midday.

BJ's stock rose 42 cents, less than 1 percent, to $45.03.


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