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Bon-Ton Q2 comparable sales down 2 percent

By Prachi Singh

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Business

Comparable store sales at Bon-Ton Stores decreased 2 percent compared with the prior year period. Net loss was 38.7 million dollars or 1.95 dollars per diluted share, compared with net loss of 39.6 million dollars or 2.01 dollars per diluted share, in the second quarter of fiscal 2015.

Commenting on the second quarter performance, Kathryn Bufano, President and CEO said, "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."

Second quarter review

Total sales in the period decreased 2.4 percent to 542.4 million dollars. Sales increases were achieved in activewear, Big & Tall, denim, Young Men's, Young Contemporary Plus, Women's Better Handbags, Hard Home and furniture. The company achieved accelerated growth in omnichannel, which reflects sales via its website, mobile site, and its Buy Online Pick Up In-Store and Let Us Find It initiatives.

Adjusted EBITDA totalled 2.5 million dollars. In the second quarter of fiscal 2015, Adjusted EBITDA was 5.7 million dollars, including a 0.7 million dollars gain associated with an insurance settlement and one million dollars of severance costs. Excluding the financial impacts of these items, Adjusted EBITDA would have been six million dollars in the second quarter of fiscal 2015. Gross profit decreased 6.5 million dollars to 198.1 million dollars in the second quarter as a result of decreased sales volume.

Reveals outlook for FY16

For fiscal 2016, loss per diluted share is expected to be in a range of 0.95 dollar to 1.45 dollars. The company continues to expect Adjusted EBITDA in a range of 130 million dollars to 140 million dollars.

Picture:Bon-Ton Stores, Ralph Lauren

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