The Bon-Ton Stores, Inc. (BONT) saw its loss widen to $57.32 million, or $2.86 a share for the quarter ended Apr. 29, 2017. In the previous year period, the company reported a loss of $37.82 million, or $1.91 a share. Revenue during the quarter dropped 9.11 percent to $553.02 million from $608.42 million in the previous year period. Gross margin for the quarter contracted 149 basis points over the previous year period to 34.26 percent. Operating margin for the quarter stood at negative 7.01 percent as compared to a negative 3.76 percent for the previous year period.
Operating loss for the quarter was $38.79 million, compared with an operating loss of $22.88 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $15.62 million compared with $1.32 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 2.83 percent for the quarter compared to 0.22 percent in the last year period.
Kathryn Bufano, president and chief executive officer, commented, "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 and we continued to expand our merchandise offering with highly recognized brands as well as exclusive and private brands that resonate with our customer. Looking ahead, we will continue to make enhancements to our omnichannel strategy, expand our merchandise assortment with brands and categories that appeal to our customer, and elevate our marketing programs to drive traffic and conversion. In addition, we expect to achieve additional cost reductions in fiscal 2017 through the rollout of our internal profit improvement initiative."
The Bon-Ton Stores, Inc. forecasts revenue to decline in the range of 3 percent to 4 percent for the fiscal year 2017. For financial year 2017, Bon Ton Stores projects net income to be in the range of $52.60 million to $42.20 million. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $2.08 to $2.59.
Operating cash flow turns negative
The Bon-Ton Stores, Inc. has spent $31 million cash to meet operating activities during the quarter as against cash inflow of $12.28 million in the last year period. The company has spent $9.76 million cash to meet investing activities during the quarter as against cash outgo of $12.62 million in the last year period. It has incurred net capital expenditure of $9.76 million on net basis during the quarter, down 22.68 percent or $2.86 million from year ago period.
Cash flow from financing activities was $41.03 million for the quarter, up 3,133.10 percent or $39.76 million, when compared with the last year period.
Cash and cash equivalents stood at $7.01 million as on Apr. 29, 2017, down 10.18 percent or $0.80 million from $7.81 million on Apr. 30, 2016.
Debt moves up marginally
The Bon-Ton Stores, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,033.90 million as on Apr. 29, 2017, up 3.84 percent or $38.24 million from $995.65 million on Apr. 30, 2016.
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