BJ’s profit drops 4%, but beats estimates

Natick, Mass. BJ's Wholesale Club reported a higher-than-expected quarterly profit on Wednesday on improved margins and a tax settlement, and the warehouse club operator raised its profit outlook for the year.

BJ's profit for the second quarter that ended Aug. 1, slipped 4% to $35.1 million, compared with $36.5 million a year earlier.

BJ's previously announced its second-quarter sales fell 5.2% to $2.5 billion, while same-store sales dropped 7.7%.