Bon-Ton Q3 sales fall 2.6 percent

REPORT_ Bon-Ton third quarter comparable store sales decreased 2.8 percent.

Total sales for the third quarter of fiscal 2013 decreased 2.6 percent. Gross margin rate for the third quarter of fiscal 2013 was flat to the gross margin rate in the third quarter of fiscal 2012 at 36.6 percent of net sales. Reduced expenses contributed to 13 percent growth in adjusted EBITDA, which, together with lower interest expense, delivered an improved EPS.

For the year comparable stores sales decreased 2.6 percent. Gross margin rate increased approximately 50 basis points to 36.1 percent compared with 35.6 percent in the prior year period.

Bon-Ton is based in Pennsylvania. It operates 273 department stores. The stores offer fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings. Brendan Hoffman, President and Chief Executive Officer, commented, “We saw meaningful improvement in our comparable store sales towards the end of the quarter. Strong performances in a number of key merchandise categories lead us to believe that we are on track with our strategic initiatives. We are looking forward to the holiday selling season with a fresh and inspired merchandise assortment.”