The Bon-Ton Stores Q2 comparable stores sales up 1.6 percent

REPORT_ The Bon-Ton Stores said that its comparable store sales in the second

quarter of fiscal 2014 increased 1.6 percent compared with the prior year period. Adjusted EBITDA in the second quarter of fiscal 2014 was 5.1 million dollars, compared with 8.7 million dollars in the second quarter of fiscal 2013. Net loss in the second quarter was 36.2 million dollars, or 1.86 dollars per diluted share, compared with a net loss of 37.3 million dollars, or 1.95 dollars per diluted share.

Brendan Hoffman, President and Chief Executive Officer, said, “We were pleased that we achieved comparable store sales growth, particularly given the challenging promotional environment and continuation of soft traffic trends. E-commerce delivered another strong quarter driven primarily by increased conversion. In addition, our proprietary credit card penetration increased to approximately 51 percent of total sales, further demonstrating the ongoing strength of our loyalty program.”

Hoffman further added, “We are excited to welcome Kathryn Bufano to the Bon-Ton team as she assumes the role of President and Chief Executive Officer next week. She comes with a wealth of knowledge and experience in the retail industry which we believe will be beneficial as we continue to execute our business strategies for profitable growth. I look forward to working with Kathy during a transition period.”

Total sales in the second quarter of fiscal 2014 increased 1.1 percent to 563.5 million dollars, compared with 557.1 million dollars in the prior year period. In the second quarter of fiscal 2014, gross margin increased 0.1 million dollars to 206.2 million dollars, compared with 206.1 million dollars in the second quarter of fiscal 2013. The gross margin rate for the second quarter of fiscal 2014 decreased to 36.6 percent of net sales from 37 percent of net sales in the prior year period.

Keith Plowman, Executive Vice President and Chief Financial Officer, stated, “We are revising our fiscal 2014 guidance for Adjusted EBITDA to a range of 165 million dollars to 175 million dollars. We expect earnings per diluted share to be in a range of 0.25 dollars to 0.55 dollars. Assumptions reflected in our full-year guidance include comparable store sales in a range of 1 percent to 2 percent increase; gross margin rate flat to up 20 basis points compared with the fiscal 2013 rate of 36.2 percent.”