Bon-Ton reports 29% decline in Q4 net income
Bon-Ton Stores, Inc. reported net declines in the fourth quarter and the full FY15. Net income for the fourth quarter FY15 was 29.4% lower than Q4 FY14 at $71.7 million, or $3.55 per diluted share to a net income of $50.6 million, or $2.42 per diluted share.
Fourth quarter store sales decreased 1.9% compared to the same quarter in FY14. Adjusted EBITDA totaled $94 million, which included $3.9 million of severance packages from reductions in employees. In FY14, Q4, adjusted EBITDA was $113.1 million.
Kathryn Bufano, Bon-Ton President and CEO, commented, "Despite external headwinds and unseasonable weather that continued into the fourth quarter, we successfully managed elements within our control, reducing SG&A expense for the year and ending the period with inventories below prior year levels.” She continued, “Our omnichannel sales achieved double-digit growth.”
Bon-Ton also reported a 1.3% reduction in comparable store sales for FY15, and an adjusted EBITDA of $109.5 million compared to $153.7 million in FY14. The company experienced a net loss in FY15 of $57.1 million, or $2.90 per diluted share.
For fiscal year 2016, Bon-Ton expects adjusted EBITDA to range from $140 million to $150 million, as well as a $0.50 to $1 loss per diluted share. Comparable sales are expected to range from no change to a 1% increase.
Bon-Ton Stores, Inc. has corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin. The company operates 267 stores in 26 states in the Northeast, Midwest and Great Plains regions in the United States. The brand offers apparel and accessories for women, men and children, as well as cosmetics and home furnishings.
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