Bon-Ton Stores comparable store sales decline 1.3 percent

The Bon-Ton Stores comparable store sales decreased 1.9 percent in the fourth quarter of fiscal 2015 as compared with the prior year period. Comparable store sales decreased 1.3 percent in fiscal 2015 as compared with the prior year. Net income in the quarter was 50.6 million dollars, or 2.42 dollars per diluted share and net loss in fiscal 2015 was 57.1 million dollars, or 2.90 dollars per diluted share.

“Despite external headwinds and unseasonable weather that continued into the fourth quarter, we successfully managed elements within our control, reducing SG&A expense for the year and ending the period with inventories below prior year levels. As we continue to execute on our key initiatives in 2016, we look to deliver an improved gross margin rate and gross profit dollars through prudent inventory management, increased sell-thru of regular price merchandise and greater efficiencies in our distribution network,” said Kathryn Bufano, President and Chief Executive Officer of the company.

Fourth quarter and FY15 highlights

Total sales in the period decreased 1.6 percent to 927.9 million dollars. The company said sales were robust from Black Friday through the month of December, with notable increases achieved in active wear across all families of business, Men's Big and Tall, Young Men's and Young Contemporary. However, sales of cold-weather goods decreased 10 percent in the period, more than offsetting sales increases achieved in non-seasonal merchandise categories. The company continued to witness double-digit sales growth in omnichannel, which reflects sales via its website and Let Us Find It initiative

Total sales in the period decreased 1.4 percent to 2.72 billion dollars. The company achieved a 4.1 percent increase in sales associated with proprietary credit card and double-digit sales growth in omnichannel, driven by an expanded merchandise assortment and store-fulfillment network. Gross profit decreased 41.3 million dollars to 942 million dollars in fiscal 2015 as compared with fiscal 2014 as a result of both decreased sales volume and margin rate in the current year.

Adjusted EBITDA totaled 94 million dollars compared to 113.1 million dollars, same quarter last year. Adjusted EBITDA totaled 109.5 million dollars in fiscal 2015 against adjusted EBITDA of 153.7 million dollars in fiscal 2014.

Issues guidance for FY16

For fiscal 2016, the company expects adjusted EBITDA in a range of 140 million dollars to 150 million dollars and loss per diluted share is expected to be in a range of 0.50 dollar to 1 dollar. Assumptions reflected in the full-year guidance include a comparable sales performance ranging from flat to a 1 percent increase and a gross margin rate ranging from a 40 to 60 basis point increase over the fiscal 2015 rate of 34.7 percent.