NATICK, Mass. — An $11.7 million settlement with workers over a wage-and-hour lawsuit contributed to a 37% drop in quarterly net income for BJ’s Wholesale Club, the retailer said Wednesday.
Officials emphasized that the lawsuit settlement was a one-time charge, and that excluding that and other one-time expenses, earnings totaled $24.6 million, down 12.8% from $28.2 million in the same period last year, but about what analysts had expected. “Similar issues have affected other retailers, and we felt this settlement was the best way to put this matter behind us,” said Frank Forward, chief financial officer, in a conference call with analysts.
Laura Sen, president and chief executive officer, called a quarterly comparable sales gain of 3.9%, excluding gasoline, “an outstanding achievement,” especially considering deflationary trends in top-selling perishable categories. Overall sales of $2.45 billion improved by 2% for the quarter, compared with year-ago results.
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