Bon-Ton Q1 comparable sales down 8.8 percent

Comparable store sales at Bon-Ton in the first quarter of fiscal 2017 decreased 8.8 percent, while total sales in the period decreased 9.3 percent to 536.1 million dollars compared with 591 million dollars in the first quarter of fiscal 2016.

"Our first quarter results did not meet our expectations due primarily to weak mall traffic trends, unfavorable weather and marketing challenges associated with the Easter calendar shift. That said, our omnichannel business once again generated double digit growth. We expect to achieve additional cost reductions in fiscal 2017 through the rollout of our internal profit improvement initiative," said Kathryn Bufano, the company’s President and CEO in a press release.

Bon-Ton posts double-digit omni-channel growth

The company once again achieved double-digit sales growth in omni-channel, 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-fulfillment network.

Other income in the first quarter was 16.9 million dollars, a decrease of 0.5 million dollars compared to the prior year period due to lower revenues associated with the company's proprietary credit card operations. The gross margin rate decreased 170 basis points as compared with the first quarter of fiscal 2016 to 32.2 percent of net sales. Gross profit decreased 27.5 million dollars to 172.6 million dollars as a result of decreased sales volume.

Bon-Ton expects to report earnings loss 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 expense from the 53rd week, and adjusted EBITDA to be in a range of 115 million dollars to 125 million dollars. Updated assumptions reflected in the company's full-year guidance include a comparable sales decrease now ranging from 3 percent to 4 percent, which excludes sales from the 53rd week and a gross margin rate of flat to up 10 basis points over the fiscal 2016 rate of 35.5 percent.

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