Revenue during the quarter dropped 5.29 percent to $900.04 million from $950.36 million in the previous year period. Gross margin for the quarter expanded 152 basis points over the previous year period to 37.82 percent. Total expenses were 93.11 percent of quarterly revenues, up from 92.95 percent for the same period last year. That has resulted in a contraction of 15 basis points in operating margin to 6.89 percent.

Operating income for the quarter was $62.05 million, compared with $66.96 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $101.64 million compared with $93.97 million in the prior year period. At the same time, adjusted EBITDA margin improved 140 basis points in the quarter to 11.29 percent from 9.89 percent in the last year period.

Kathryn Bufano, president and chief executive officer, commented, "While the continued weak traffic trends and unseasonably warm weather pressured sales in the fourth quarter, we expanded gross margin by 145 basis points and grew Adjusted EBITDA by 8%. In addition, we exceeded our cost reduction goal by $7 million, with net savings of $31 million for the year. We also made progress on a number of initiatives designed to differentiate our stores within the retail landscape. As part of this, we believe we further solidified our position as the hometown shopping destination with an emphasis on our localization strategy which included the introduction of our Close to Home product assortment. In addition, we continued to focus on our omnichannel strategy, with sales once again growing in the double digits. Finally, we grew our base of loyal private label credit card users, and launched our new Love Style Rewards loyalty program to great response."

For financial year 2017, Bon Ton Stores projects net loss 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.

The company has spent $54.52 million cash to meet investing activities during the year as against cash inflow of $2.38 million in the last year.

The company has spent $4.59 million cash to carry out financing activities during the year as against cash outgo of $22.08 million in the last year period.

Cash and cash equivalents stood at $6.74 million as on Jan. 28, 2017, down 2.08 percent or $0.14 million from $6.88 million on Jan. 30, 2016.

Working capital decreases marginally
The Bon-Ton Stores, Inc. has witnessed a decline in the working capital over the last year. It stood at $460.90 million as at Jan. 28, 2017, down 2.29 percent or $10.80 million from $471.70 million on Jan. 30, 2016. Current ratio was at 2.25 as on Jan. 28, 2017, down from 2.37 on Jan. 30, 2016.

Days inventory outstanding has increased to 59 days for the quarter compared with 53 days for the previous year period. At the same time, days payable outstanding went up to 15 days for the quarter from 12 for the same period last year.