BJ’s Wholesale Club has authorized a stock buyback of up to $250 million in what the Westborough retailer said Thursday was a sign of confidence in its financial outlook.
The buyback initiative is effective immediately, BJ’s said, adding the company to a list of public firms in Central Massachusetts and beyond who have purchased back much of their own stock since a 2017 federal law change lowered corporate tax rates. BJ’s also approved a $63.5-million stock buyback in June.
“The board’s decision to authorize a stock repurchase program reflects the strength of our cash flow and confidence in our growth strategy and long-term outlook,” Christopher Baldwin, BJ’s chairman and CEO, said in a statement.
BJ’s, with 219 locations, reported third-quarter results Thursday showing largely flat sales.
Net sales for the third quarter of fiscal 2019 increased 0.1% to $3.2 billion, compared to a year earlier, and same-store sales, excluding gasoline, were up 1.1%. Projects were $55.1 million, or $0.40 per diluted share, vs. $54.4 million in the third quarter 2018.
