Bon-Ton Stores Earnings: What Investors Need to Know

Bon-Ton Stores Inc. (NASDAQ:BONT) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Bon-Ton Stores Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-1.75 in the quarter versus EPS of $-2.09 in the year-earlier quarter.

Revenue: Decreased 5.97% to $571 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Bon-Ton Stores Inc. reported adjusted EPS loss of $1.75 per share. By that measure, the company missed the mean analyst estimate of $-1.38. It missed the average revenue estimate of $616.82 million.

Quoting Management: Brendan Hoffman, President and Chief Executive Officer, commented, “We were disappointed in our second quarter sales performance, but we were pleased we were able to deliver on several of our goals, including a 100 basis point increase in the gross margin rate and reduced expenses, which led to 23% growth in Adjusted EBITDA. We believe overall sales weakness was in part attributable to the adverse impact of inclement weather in our markets and higher gas prices, especially in the Northeast and Midwest, which contributed to an unfavorable shift in consumer spending patterns. Looking ahead, we remain focused on the continued execution of our key merchandising, marketing and eCommerce strategies, including the localization of our merchandise assortments and marketing programs to drive top-line growth, while maintaining disciplined inventory management and careful cost controls.”

Key Stats (on next page)…

Revenue decreased 13.73% from $661.88 million in the previous quarter. EPS increased to $-1.75 in the quarter versus EPS of $-1.39 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.19 to a loss $0.22. For the current year, the average estimate has moved down from a profit of $0.92 to a profit of $0.9 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)