Bon-Ton posts Q2 comparable sales decline of 6.1 percent

Comparable store sales in the second quarter decreased 6.1 percent at Bon-Ton stores, while total sales in the period decreased 7 percent to 504.4 million dollars, compared with 542.4 million dollars in the second quarter of fiscal 2016. The company said, it continued its double-digit sales growth in omnichannel, which reflects sales via the company's website, mobile site, and its ‘Let Us Find It’ customer service program, as the company leveraged its West Jefferson facility and store-fulfilment network.

Commenting on the second quarter trading, William Tracy, incoming President and CEO, said in a media statement, "We made progress in several important areas of the business during the second quarter. We saw strength in key merchandise categories and brands and were pleased with the continued double-digit growth in our omnichannel business."

Q2 gross profit decreases by 18.9 mn dollars

Other income in the second quarter was 21 million dollars, an increase of 4.8 million dollars over the comparable prior year period. The gross margin rate decreased approximately 100 basis points to 35.5 percent of net sales, primarily due to an increase in the markdown rate. Gross profit decreased 18.9 million dollars to 179.2 million dollars, as a result of decreased sales volume.

Adjusted EBITDA totalled 9.1 million dollars compared to 2.5 million dollars in the same quarter last year.

Bon-Ton expects to report per share loss of 2.08-2.59 in FY17

For fiscal 2017, the company continues to expect loss per share to be in a range of 2.08 dollars to 2.59 dollars, inclusive of a 0.05 dollar per share expense from the 53rdweek, and adjusted EBITDA to be in a range of 115 million dollars to 125 million dollars.

The company expects a comparable sales decrease to range from 3.5 percent to 4.5 percent, which excludes sales from the 53rd week; and gross margin rate to decrease in the range of 40 to 60 basis points below the fiscal 2016 rate of 35.5 percent.

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