Bon-Ton Stores Reports 2Q Store Sales Decrease

August 20, 2015  by in Financial Reports, Industry   

The net loss in the second quarter of its fiscal year 2015 was $39.6 million compared to the net loss of $36.2 million in the second quarter of its fiscal year 2014. The results include a loss of $4.9 million as a result of the early termination of one of the company’s mortgage facilities and a gain of $700,000 for the insurance settlement. Excluding those factors, net loss in the second quarter of its fiscal year 2015 was $35.4 million. 

“While our second quarter sales results were challenged, we saw meaningful improvement in our gross margin rate and effectively managed expenses,” said Kathryn Bufano, president and CEO of The Bon-Ton Stores. “Sales were pressured by unseasonably cool weather, which impacted our seasonal classifications, and by weakness in overall traffic trends. 

The York, Pa.-based company's gross margin rate increased by 24 basis points to 36.8 percent of net sales in the current year period.

Bufano added that The Bon-Ton Stores were encouraged by the sales improvement in certain core categories and its private label business.

“Looking ahead, we believe that some of the macro pressures that impacted our sales during the second quarter will continue into the second half and, therefore, we are reducing our fiscal 2015 Adjusted EBITDA guidance to a range of $145 million to $155 million,” Bufano said. “We will continue to prudently manage our business while we remain focused on continued execution of our strategic initiatives to drive improved sales productivity and EBITDA growth over the long term.”