PORTLAND, Ore. —  BJ's Wholesale Club Inc. posted a slightly higher second-quarter profit on Wednesday and raised its full-year earnings forecast as frugal shoppers look for deals at discounters.

But shares in the nation's third-biggest warehouse club dropped more than 7 percent, or $2.97, to close at $37.71, possibly on investor concerns about pricing and the economy.

The Natick, Mass.-based retailer earned $36.5 million, or 61 cents per share, in the three months ended Aug. 2. That's up from $36.3 million, or 55 cents per share, a year earlier.

This year's second quarter included a benefit of 3 cents a share related to state income tax audit settlements. Last year's results included gains of 4 cents a share related to the disposition of a lease as well as 5 cents per share from state income tax audit settlements.

Sales rose almost 18 percent to $2.65 billion, from $2.25 billion in the same period last year. Shoppers focused on gas, groceries and necessary items.

The company said products like coffee, dairy, fresh meat and salty snacks fared well but discretionary items like electronics, furniture and best-seller books did not.

Same-store sales, or sales at stores open at least a year, rose 15.5 percent, including a contribution from sales of gasoline of 8.1 percent. Same-store sales are considered a key indicator of a retailer's health.

Analysts surveyed by Thomson Reuters were expecting BJ's to earn 57 cents per share on revenue of $2.67 billion.

The company said traffic increased by 5 percent for the quarter, excluding the sales of gasoline, its strongest growth since 2004.

"I believe that our value proposition will continue to attract more members as well as to deliver increased frequency," said BJ's President Laura Sen. "Because the majority of BJ's sales are derived from non-discretionary items we have been able to generate strong top line growth in a challenging macro environment."

The company said it expects sales of general merchandise other than groceries to remain flat in the immediate future. BJ's also said that it is, like most retailers, struggling to find the right balance on where to pass cost increases on the consumer. But it continues to expand the company, adding four new stores during the year.

Standard & Poor's Equity Research reiterated its "hold" recommendation on BJ's, saying in a note Wednesday that the sharp drop in the stock price reflects concern about spending on discretionary items during the holiday season. But it added that in the months ahead, it expects BJ's market share to grow as a result of price-sensitive consumers.

BJ's raised its full-year profit forecast, the second upgrade in a matter of months. The company now expects earnings for the year of $2.10 to $2.20 per share, up from its May guidance of $2.04 to $2.14 per share. The May forecast was 6 cents per share above the company's previous expectations offered in March.

Analysts surveyed by Thomson Reuters expect earnings of $2.14 per share for the year.

The company also announced that its board has authorized an additional $200 million for share repurchases. During the second quarter, BJ's purchased about 1.4 million shares of its own common stock at an average cost of $37.45 each, or approximately $54 million total.

During the half-year ended Aug. 2, BJ's purchased about 2.4 million shares of its own common stock at an average cost of $35.30 each, or about $83 million. Including the $200 million authorization announced Wednesday, the company has about $291 million available for share repurchase.

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