Bon-Ton comparable store sales down 4.2 percent in 2013

REPORT_ The Bon-Ton Stores reported operating results for the fourth quarter and fiscal 2013 ended February 1, 2014. For the year 2013, company’s comparable stores sales decreased 4.2 percent and gross margin rate increased to 36.2 percent, compared with 35.8 percent in

the prior year. Comparable store sales in the fourth quarter decreased 7.3 percent, whereas gross margin increased to 36.3 percent compared to 36.2 percent the same quarter last year.

Operating income in 2013 was 69.4 million dollars, compared with 70 million dollars in the prior year. Adjusted EBITDA stood at 166 million dollars, compared with 168.8 million dollars in the prior year. Net loss was 3.6 million dollars, or 0.19 dollars per diluted share, compared with a net loss of 21.6 million dollars, or 1.16 dollars per diluted share, for the prior year.

In the fourth quarter, York-based company’s operating income was 76.1 million dollars, compared with operating income of 95.3 million dollars in the fourth quarter of fiscal 2012. Adjusted EBITDA was 103.7 million dollars, compared with 122.8 million dollars in the fourth quarter of fiscal 2012. Net income was 61.3 million dollars, or 3.04 dollars per diluted share, compared with net income of 74.4 million dollars, or 3.71 dollars per diluted share, for the fourth quarter of fiscal 2012.

Commenting on the results, Brendan Hoffman, President and Chief Executive Officer, said, “Despite disappointing fourth quarter sales results, we continued to make progress on several strategic initiatives that we believe will drive improved performance. We have made great strides in executing our strategic initiatives and will continue to focus on enhancing our merchandise assortments, driving our e-commerce business, refining our marketing strategy and moving forward with our localization initiative, all with an eye on improving our productivity.”

For the fourth quarter of fiscal 2013, total sales in the 13 weeks ended February 1, 2014 decreased 9.9 percent to 914.9 million dollars, compared with 1,015.1 million dollars in the 14-week period ended February 2, 2013. Fiscal 2013 total sales for the 52 weeks ended February 1, 2014 decreased 5.1 percent to 2,770.1 million dollars, compared with 2,919.4 million dollars in the 53-week period last year.

Keith Plowman, Executive Vice President and Chief Financial Officer, stated, “Our fiscal 2014 guidance for Adjusted EBITDA is a range of 170 million dollars to 180 million dollars, for income per diluted share a range of 0.40 dollars to 0.70 dollars. Assumptions reflected in our full-year guidance include comparable store sales increase in a range of 1.0 percent to 3.0 percent and gross margin rate in a range of 36.3 percent to 36.5 percent among others.”