Bon-Ton Stores Q2 comparable sales in line with forecastStaff writer ▼ | June 29, 2016
The Bon-Ton Stores said that through June 25, 2016, comparable sales performance for the second quarter of fiscal 2016 was in line with the company's forecast.
Bon-Ton Stores Loss per diluted share to be $0.95-$1.45
Assumptions reflected in The Bon-Ton Stores' full-year guidance include the following:
- A comparable sales performance ranging from flat to a decrease of 1%;
- A gross margin rate ranging from a 30- to 50-basis-point increase over the fiscal 2015 rate of 34.7%;
- An SG&A expense rate ranging from a 40- to 60-basis-point decrease from the fiscal 2015 rate of 33.3%;
- Capital expenditures not to exceed $40 million, net of external contributions; and
- An estimated 20 million weighted average shares outstanding.
As of June 25, 2016, the company had approximately $246.4 million of borrowing capacity under its revolving credit facility, and expects to decrease debt by approximately $40 million to $50 million for fiscal 2016.
Kathryn Bufano, president and CEO, commented, "In light of recent developments, including the announcement regarding our sale-leaseback agreement, and the ongoing uncertainties in the marketplace, we believe it is prudent to provide an update on our quarter-to-date business trends.
"Overall, our sales trends are in line with our plan, and we continue to believe that we are on track to meet our expectations for fiscal 2016. In addition, we continue to focus on maintaining adequate and sustainable liquidity levels for the business.
"As part of our ongoing refinancing efforts, we are working to diligently explore all appropriate options to pay down our senior notes due in 2017, and remain confident that we will be in a position to pay down this debt prior to maturity in July of 2017.
"We look forward to providing you with further details and additional information when we report our second quarter results in August." ■