San Francisco BJ's Wholesale Club reported a 37% drop in quarterly profit on Wednesday, hurt by a charge for a proposed legal settlement regarding worker pay.
BJ's profit for the third quarter ended Oct. 31 fell to $17.7 million from $28.2 million a year earlier.
As BJ's reported earlier this month, sales rose 2% to $2.45 billion, while same-store sales fell 2.5%.
In the recently completed quarter, BJ's said sales were stronger for cereal, computer equipment, frozen food, and health and beauty aids compared with a year ago. Sales were weaker for electronics, jewelry, milk, oils and shortenings, sporting goods, toys and trash bags.
Headed into the holiday season, the retailer said general merchandise pricing has been "extremely aggressive."