The increase in grocery sales from consumers during the coronavirus pandemic led BJ’s Wholesale Club to set records for earnings in 2020, generating profits of $421 million, an increase of 125% from 2019.
The Westborough company’s yearly report released Thursday showed sales up 17% year-over-year, resulting in an adjusted earnings per share increase of 111.6% year-over-year to $3.09. Gross profit increased to $2.979 billion in fiscal 2020 from $2.427 billion in fiscal 2019.
The strong performance came as a result of a year that “structurally changed our business for the better,” Lee Delaney, president and CEO, BJ’s Wholesale Club, said in a press release. The pandemic provided a tailwind, he said, allowing the company to expand both its digital offerings and geographically.
In the fourth quarter alone, digitally enabled sales grew 168% when compared to the previous year’s fourth quarter. Income for the fourth quarter increased 129.6% year-over-year to $95.9 million. Adjusted earnings per share were up 75% in the quarter to $0.70 per share. Gross profit increased to $742.6 million in the fourth quarter of fiscal 2020 from $622.2 million in the fourth quarter of fiscal 2019.
