The Bon-Ton Stores, Inc. released results for the Second Quarter Ended July 30, 2016. Highlights:
- Comparable store sales decreased 2.0% as compared with the prior year period.
- Net loss was $38.7 million, or $1.95 per diluted share, compared with net loss of $39.6 million, or $2.01 per diluted share, in the second quarter of fiscal 2015.
- Total sales in the period decreased 2.4% to $542.4 million, compared with $555.4 million in the second quarter of fiscal 2015.
- Gross profit decreased $6.5 million to $198.1 million in the second quarter of fiscal 2016, primarily as a result of decreased sales volume. The gross margin rate in the second quarter of fiscal 2016 was 36.5% of net sales as compared to 36.8% in the same quarter last year.
- Sales increases were achieved in Activewear, Big & Tall, Denim, Young Men’s, Young Contemporary Plus, Women’s Better Handbags, Hard Home and Furniture.
Kathryn Bufano, President and Chief Executive Officer, commented, “We made progress on a number of our strategic initiatives during the second quarter, although the soft mall traffic trends continued to negatively impact our business. Importantly, we delivered sales gains in our key growth categories and brands, and drove accelerated double-digit growth in our omnichannel business, with a triple digit increase on our mobile site. In addition, we maintained careful inventory controls, as we reduced inventory by 6% with fewer markdowns. We also continued to make progress on our cost savings plan.”
Ms. Bufano continued, “Looking ahead, we believe that the Fall assortment will be our best to date. We also expect that our omnichannel business will continue to deliver strong performance. While we are cognizant that the operating environment remains difficult, we believe that we are well positioned for the back half of the year with a strong merchandising assortment, a compelling marketing program focused on new customer acquisition, and continued discipline in inventory management and cost controls.”
For fiscal 2016, loss per diluted share is expected to be in a range of $0.95 to $1.45. The Company continues to expect Adjusted EBITDA in a range of $130 million to $140 million.