Bon-Ton reports bleak Q2 due to 'unseasonably cool weather'

Published: 20-Aug-2015

Weakness in overall traffic trends also contributed to the US retailer's sales drop

US department store Bon-Ton has released a muted set of financial results for its second quarter of fiscal 2015.

The Bon-Ton Stores made a net loss of $39.6m or $2.01 per diluted share, a greater loss than it made in the same period in 2014 ($36.2m or $1.86 per diluted share). Comparable store sales suffered, down 1.3% in Q2 2015.

The retailer, which has 275 across the US and sells a wide variety of beauty and fragrance brands including Lancôme, Clinique, essie, philosophy, Deborah Lippman and Clarisonic, among many others, also sells clothing, accessories and homeware.

The company noted that certain categories were jeopardised more than others in Q2 due to different factors, one being the weather. Kathryn Bufano, President and Chief Executive Officer, said: “Sales were pressured by unseasonably cool weather, which impacted our seasonal classifications, and by weakness in overall traffic trends. That said, we were encouraged by the sales improvement in certain core categories and our private label business.”

Bufano continued: “Looking ahead, we believe that some of the macro pressures that impacted our sales during the second quarter will continue into the second half and, therefore, we are reducing our fiscal 2015 Adjusted EBITDA guidance to a range of $145 million to $155 million. We will continue to prudently manage our business while we remain focused on the continued execution of our strategic initiatives to drive improved sales productivity and EBITDA growth over the long term.”

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