New Name Gets HomeClub Back to the Base-ics

The HomeClub chain of do-it-yourself stores is changing its name to HomeBase in April to assure consumers that it has jettisoned its membership policy, the Fullerton-based company said Tuesday.

HomeClub, a division of Waban Inc. of Natick, Mass., took a $3.4-million pretax charge against fourth-quarter profits for the cost of installing new signs and to make other changes resulting from the new name. The signs have yet to go up.

Still, HomeClub was able to post operating profits of $7.2 million for the fourth quarter ended Jan. 25, down 15% from last year’s $8.5 million. Sales were $299 million, up 7% from $279 million in the same period last year.

For the year, HomeClub had operating profits of $39.3 million, up 3% from $38.2 million in 1991. It came on revenue of $1.4 billion, which increased 7.2% from $1.3 billion last year.

Waban reports operating profit for its two major divisions, HomeClub and BJ’s Wholesale Club. The corporation reported net income of $30 million, or $1.01 per share for the year, up 63% from $18.4 million, or 64 cents a share, last year. The company is traded on the New York Stock Exchange.

“We decided to change HomeClub’s name to eliminate any remaining customer confusion over whether or not our home improvement warehouses still enforce some sort of membership requirements,” Waban President John F. Levy said in a statement.

Last year, HomeClub dumped its optional membership policy that allowed customers who paid an annual membership fee--generally about $15--to receive an extra discount. In abandoning the membership policy, HomeClub said it extended its lowest prices to everyone.