BJS Wholesale Club 8-K BJ’S Wholesale Club Announces Third Quarter Eps of $.33

Exhibit 99.1

BJ’S Wholesale Club News

BJ’s Wholesale Club, Inc. One Mercer Road P.O. Box 9601 Natick, MA 01760

FOR IMMEDIATE RELEASE	Contact:	Cathy Maloney
		VP, Investor Relations
		BJ’s Wholesale Club
		508.651.6650
		cmaloney@bjs.com

BJ’S WHOLESALE CLUB ANNOUNCES THIRD QUARTER EPS OF $.33

November 16, 2004, Natick, MA — BJ’s Wholesale Club, Inc. (NYSE: BJ) today reported net income of $23.2 million, or $.33 per diluted share, for its third quarter ended October 30, 2004, an increase of 13.8% over the same period last year. This year’s net income included, on a per diluted share basis, income of approximately $.04 from an additional House2Home bankruptcy recovery and a reduction in the reserve for House2Home lease obligations, as well as expenses of $.02 to increase the Company’s reserve for discontinued operations, $.01 to increase the Company’s reserve relating to claims by various credit card issuing banks, and $.01 for uninsured losses related to hurricane damage in the Southeast.

Net income for last year’s third quarter of $20.4 million, or $.29 per diluted share, included a gain of $.01 per diluted share from a reduction in the Company’s reserve for House2Home lease obligations.

For the first nine months of 2004, net income was $67.4 million, or $.96 per diluted share. These amounts included, on a per diluted share basis, income of approximately $.09 from House2Home bankruptcy recoveries and a reduction in the reserve for House2Home lease obligations as well as expenses of $.06 to establish the Company’s reserve relating to claims by various credit card issuing banks, $.02 to increase the Company’s reserve for discontinued operations, and $.01 for uninsured losses related to hurricane damage in the Southeast.

For the first nine months of 2003, the Company reported net income before the cumulative effect of accounting changes of $54.9 million, or $.79 per diluted share. Last year’s results included a post-tax gain of $1.7 million, or approximately $.02 per diluted share, from a reduction to the Company’s reserve for House2Home lease obligations. Including the cumulative effect of accounting principle changes, last year’s net income year-to-date was $53.6 million, or $.77 per diluted share.

Net sales for the third quarter of 2004 increased by 9.8% to $1.8 billion, and comparable club sales increased by 6.1% including a contribution from sales of gasoline of 0.4%. Year-to-date, net sales rose by 11.5% to $5.2 billion, with a 7.1% increase in comparable club sales including a contribution from sales of gasoline of 1.1%.

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BJ’s Wholesale Club

November 16, 2004

Commenting on third quarter results, BJ’s president and CEO Mike Wedge said, “We are very pleased with our strong earnings performance and solid comp store sales growth for the third quarter and first nine months of 2004. We attribute these positive results to the Member Insight-based merchandising and operational improvements we have made throughout the year to make our clubs more compelling and more relevant to our members.”

Conference Call on Third Quarter Financial Results

As previously announced, BJ’s management will hold a conference call to discuss third quarter financial results and the outlook for the fourth quarter today at 8:30 a.m. Eastern Time. To access the webcast (including financial and other statistical information being presented, as well as reconciliation information with respect to non-GAAP financial measures being presented, if any), visit:www.bjsinvestor.com/medialist.cfm. Replays will be available at the same web address for approximately one quarter following the call.

BJ’s introduced the wholesale club concept to New England in 1984, and has since expanded into a leading warehouse chain in the eastern United States. At the end of the third quarter, BJ’s operated 153 BJ’s clubs, one ProFoods Restaurant Supply club and 80 gas stations in 16 states. BJ’s press releases and filings with the Securities and Exchange Commission are available on the Internet atwww.bjs.com.

- See Financial Tables -

BJ’s Wholesale Club, Inc. and Consolidated Subsidiaries

STATEMENTS OF INCOME (Unaudited)

(Dollars in Thousands Except Per Share Amounts)

	Thirteen Weeks Ended						Thirty-Nine Weeks Ended
	October 30, 2004			November 1, 2003			October 30, 2004			November 1, 2003
Net sales	$	1,758,215		$	1,600,676		$	5,209,161		$	4,673,242
Membership fees and other		39,472			35,331			114,419			103,358
Total revenues		1,797,687			1,636,007			5,323,580			4,776,600
Cost of sales, including buying and occupancy costs		1,619,080			1,477,171			4,809,439			4,316,508
Selling, general and administrative expenses		139,014			123,732			399,456			363,905
Provision for credit card claims		1,000			—			7,000			—
Preopening expenses		3,022			2,640			4,961			8,288
Operating income		35,571			32,464			102,724			87,899
Interest income (expense), net		216			(32	)		235			(122	)
Gain on contingent lease obligations		5,090			781			9,424			2,017
Income from continuing operations before income taxes and cumulative effect of accounting principle changes		40,877			33,213			112,383			89,794
Provision for income taxes		15,799			12,580			42,926			34,382
Income from continuing operations before cumulative effect of accounting principle changes		25,078			20,633			69,457			55,412
Loss from discontinued operations, net of income tax benefit		(1,839	)		(229	)		(2,101	)		(522	)
Income before cumulative effect of accounting principle changes		23,239			20,404			67,356			54,890
Cumulative effect of accounting principle changes		—			—			—			(1,253	)
Net income	$	23,239		$	20,404		$	67,356		$	53,637
Basic earnings per common share:
Income from continuing operations before cumulative effect of accounting principle changes	$	0.36		$	0.30		$	1.00		$	0.80
Loss from discontinued operations		(0.03	)		(0.01	)		(0.03	)		(0.01	)
Cumulative effect of accounting principle changes		—			—			—			(0.02	)
Net income	$	0.33		$	0.29		$	0.97		$	0.77
Diluted earnings per common share:
Income from continuing operations before cumulative effect of accounting principle changes	$	0.36		$	0.29		$	0.99		$	0.80
Loss from discontinued operations		(0.03	)		—			(0.03	)		(0.01	)
Cumulative effect of accounting principle changes		—			—			—			(0.02	)
Net income	$	0.33		$	0.29		$	0.96		$	0.77
Number of common shares for earnings per share computations:
Basic		69,548,902			69,691,318			69,630,716			69,434,039
Diluted		70,086,276			70,133,784			70,128,656			69,662,669
Pro forma amounts assuming accounting principle changes are applied retroactively:
Net income	$	23,239		$	20,404		$	67,356		$	54,890
Basic earnings per common share	$	0.33		$	0.29		$	0.97		$	0.79
Diluted earnings per common share	$	0.33		$	0.29		$	0.96		$	0.79
Clubs in operation - end of period		154			147

BJ’s Wholesale Club, Inc. and Consolidated Subsidiaries

CONDENSED BALANCE SHEETS (Unaudited)

(Dollars in Thousands)

	October 30, 2004		November 1, 2003
ASSETS
Current assets:
Cash and cash equivalents	$	37,988	$	33,201
Marketable securities		68,100		—
Accounts receivable		80,213		66,197
Merchandise inventories		804,418		792,300
Current deferred income taxes		17,612		16,468
Prepaid expenses		18,874		17,837
Total current assets		1,027,205		926,003
Property, net of depreciation		787,919		754,012
Other assets		22,918		23,370
TOTAL ASSETS	$	1,838,042	$	1,703,385
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	—	$	51,000
Current installments of long-term debt		421		—
Accounts payable		580,939		530,228
Closed store lease obligations		9,269		11,783
Accrued expenses and other current liabilities		222,442		211,553
Total current liabilities		813,071		804,564
Long-term debt, less portion due within one year		3,306		—
Noncurrent closed store lease obligations		9,128		14,310
Other noncurrent liabilities		64,861		58,514
Deferred income taxes		43,310		23,144
Stockholders’ equity		904,366		802,853
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,838,042	$	1,703,385

BJ’s Wholesale Club, Inc. and Consolidated Subsidiaries

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

(Dollars in Thousands)

	Thirty-Nine Weeks Ended
	October 30, 2004			November 1, 2003
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	67,356		$	53,637
Provision for credit card claims		7,000			—
Gain on contingent lease obligations		(2,458	)		(2,017	)
Provision for store closing costs		3,502			870
Cumulative effect of accounting principle changes		—			1,253
Depreciation and amortization		73,376			63,801
Deferred income taxes		10,856			14,751
Increase in merchandise inventories, net of accounts payable		(3,019	)		(50,182	)
Decrease in closed store lease obligations		(4,558	)		(31,094	)
Other		1,286			26,959
Net cash provided by operating activities		153,341			77,978
CASH FLOWS FROM INVESTING ACTIVITIES
Property additions		(89,104	)		(135,105	)
Property disposals		470			131
Purchase of marketable securities		(352,615	)		—
Sale of marketable securities		284,515			—
Net cash used in investing activities		(156,734	)		(134,974	)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowing of short-term debt, net		—			51,000
Purchase of treasury stock		(28,031	)		—
Proceeds from issuance of common stock		9,076			7,407
Changes in book overdrafts		(18,086	)		(893	)
Repayment of long-term debt		(298	)		—
Net cash provided by (used in) financing activities		(37,339	)		57,514
Net increase (decrease) in cash and cash equivalents	$	(40,732	)	$	518

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

1. In the quarter ended July 31, 2004, the Company recorded a pretax charge of $6.0 million ($3.6 million post-tax) to establish a reserve for claims by credit card issuing banks seeking reimbursement for fraudulent credit and debit card charges and the cost of replacing cards, monitoring expenses and related fees and expenses. In the quarter ended October 30, 2004, the Company recorded an additional pretax charge of $1.0 million, ($0.6 million post-tax, or $.01 per diluted share) relating to this matter, bringing the year-to-date pretax charges up to $7.0 million ($4.2 million post-tax, or $.06 per diluted share).

2. During this year’s first three quarters, the Company received pretax recoveries of House2Home bankruptcy claims of $7.0 million, including $2.5 million in the third quarter. These recoveries are included in gain on contingent lease obligations in the statements of income. On a post-tax basis, these gains were $1.5 million, or $.02 per diluted share, in the third quarter and $4.6 million, or $.06 per diluted share, year-to-date.

3. In this year’s third quarter, the Company recorded a pretax credit of $2.7 million ($1.6 million after tax, or $.02 per diluted share) to reduce its House2Home contingent lease obligations.

The Company recorded pretax credits of $1.0 million ($0.6 million after tax, or $.01 per diluted share) in last year’s third quarter and $2.9 million ($1.7 million after tax, or $.02 per diluted share) in last year’s nine months ended November 1, 2003 to reduce its contingent lease obligations.

4. During last year’s first quarter ended May 3, 2003, the Company adopted the provisions of Statement of Financial Accounting Standards No. 143, “Accounting for Asset Retirement Obligations” (“SFAS No. 143”). The Company recorded a post-tax charge of $1,253,000, or $.02 per diluted share, to reflect the cumulative effect of adopting this accounting principle change as of the beginning of the fiscal year.

5. As of the beginning of the current fiscal year, the Company adopted the provisions of Emerging Issues Task Force Issue 03-10, “Application of EITF Issue No. 02-16 by Resellers to Sales Incentives Offered to Consumers by Manufacturers” (“EITF 03-10”). This pronouncement provides guidance for the reporting of vendor consideration received by a reseller as it relates to manufacturers’ incentives (such as rebates or coupons) tendered by consumers. Vendor consideration may be included in revenues only if defined criteria are met. Otherwise, such consideration is recorded as a decrease in cost of sales. Implementation of EITF 03-10 has no effect on gross margin dollars, net income or cash flows, but certain vendor coupons or rebates which had been recorded in sales in the past are being recorded as a reduction of cost of sales this year. This resulted in decreases in both sales and cost of sales of $10.5 million in this year’s third quarter versus $8.8 million in last year’s third quarter, and $31.9 million in the first nine months of this year versus $18.4 million in last year’s comparable period. As permitted by the transition provisions of EITF 03-10, sales and cost of sales in last year’s statements of income have been recast to conform with this year’s presentation.

6. Certain amounts in the prior year’s financial statements have been reclassified for comparative purposes.