Bon Ton FY14 comparable store sales up 0.2 percent

The Bon Ton Store comparable store sales increased 4.3 percent in the fourth quarter compared with the prior year period. Comparable store sales increased 0.2 percent in fiscal 2014 compared with the prior year. Adjusted EBITDA was 113.1 million dollars in the fourth quarter of fiscal 2014. Adjusted EBITDA was approximately 104.3 million dollars compared with 103.7 million dollars in the fourth quarter of fiscal 2013. Adjusted EBITDA was 153.7 million dollars in fiscal 2014.

Net income in the fourth quarter of fiscal 2014 was 71.7 million dollars, or 3.55 dollars per diluted share, compared with net income of 61.3 million dollars, or 3.04 dollars per diluted share, in the comparable prior year period. The net loss in fiscal 2014 was 7 million dollars, or 0.36 dollars per diluted share, compared with a prior year net loss of 3.6 million dollars, or 0.19 dollars per diluted share.

According to Kathryn Bufano, President and Chief Executive Officer, “We were pleased with our sales performance in the fourth quarter in both stores and eCommerce. However, increased promotional activity in support of our initiative to drive incremental traffic as well as higher delivery expenses associated with our omni-channel operations resulted in a reduced gross margin rate in the fourth quarter.”

Total sales in the fourth quarter increased 3 percent to 942.6 million dollars, compared with 914.9 million dollars in the fourth quarter of fiscal 2013. Top performing merchandise categories included cold weather and active apparel and home. The company saw double-digit sales growth in eCommerce in the period due to expanded product offerings and an additional online event. Gross margin decreased 2.2 million dollars to 329.5 million dollars in the fourth quarter of fiscal 2014 as compared with the comparable prior year period. The gross margin rate in the period decreased 130 basis points to 35 percent of net sales.

Total sales for the full year decreased 0.5 percent to 2.756 billion dollars from 2.770 billion dollars in fiscal 2013. eCommerce sales increased over 25 percent in fiscal 2014, the fifth consecutive year of sales growth in excess of 20 percent. Gross margin decreased 18.1 million dollars to 983.3 million dollars in fiscal 2014 as compared with fiscal 2013. The gross margin rate decreased 48 basis points to 35.7 percent.

On the outlook, Bufano said, “Our fiscal 2015 guidance, expects adjusted EBITDA in a range of 150 million dollars to 160 million dollars, earnings per diluted share in a range of a loss of 0.25 dollars to earnings of 0.25 dollars. Comparable store sales performance is expected to increase between 2 percent to 3 percent and gross margin rate to decrease 40 basis points to flat with the fiscal 2014 rate of 35.7 percent.”