BJ's Wholesale Sees Merry Outlook

NATICK, Mass. (TheStreet) -- BJ's Wholesale(BJ Quote) reported a 37% decline in its third-quarter profit, despite higher sales, as results were weighed down by charges from a legal settlement.

During the quarter, the company earned $17.7 million, or 32 cents a share, compared with $28.2 million, or 48 cents, in the year-ago period.

Excluding a charge of $11.7 million, or 13 cents a share, related to settling a labor claim, the wholesaler would have earned 45 cents a share, in-line with analysts' estimates.

Revenue inched up 2% to $2.51 billion from $2.46 billion, while same-store sales slipped 2.5%, hurt by lower gasoline sales. Excluding gasoline, comparable sales increased 3.9%.

BJ's saw the most strength in basics like cereal, cigarettes, deli housewares and paper products. Its electronics, tires, video games and oils and shortenings categories were among the weaker performers.