Home / Knowledge / News / Apparel/Garments / Gross margin improves at Bon-Ton Stores
Gross margin improves at Bon-Ton Stores
22
Nov '10
The Bon-Ton Stores Inc reported results for the third quarter of fiscal 2010 and the year-to-date period ended October 30, 2010.

Third Quarter Highlights:

• Comparable store sales decreased 0.3%.
• The gross margin rate was 38.2% of net sales, an increase of 60 basis points, compared with the prior year period, to yield a net increase in gross margin dollars of $2.7 million.
• Operating income totaled $22.7 million, compared with $19.6 million in the third quarter of fiscal 2009.
• EBITDA was $48.7 million, compared with $48.8 million in the same period of fiscal 2009. EBITDA is defined as earnings before interest, income taxes and depreciation and amortization, including amortization of lease-related interests. EBITDA is not a measure recognized under generally accepted accounting principles.
• Net loss totaled $6.3 million, or $0.36 per diluted share, compared with a net loss of $4.2 million, or $0.24 per diluted share, for the third quarter of fiscal 2009.

Year-To-Date Highlights:

• Comparable store sales increased 0.9%.
• The gross margin rate improved approximately 130 basis points to 37.9%, compared with 36.5% in the prior year period.
• Operating income was $22.0 million, compared with an operating loss of $14.7 million in the prior year period.
• EBITDA increased $29.1 million to $102.9 million, compared with $73.8 million in the prior year period.
• Net loss totaled $63.5 million, or $3.60 per diluted share, compared with a net loss of $84.4 million, or $4.96 per diluted share, in the prior year period.

Comments
Bud Bergren, President and Chief Executive Officer, commented, "We are reiterating our fiscal 2010 guidance as we were able to deliver quality sales in the third quarter by offering strong assortments and carefully managing our inventory levels, resulting in a 60 basis-point increase in our gross margin rate in the quarter and a 9% reduction in clearance inventory at period end. We believe we are well-positioned for the holiday season and expect to benefit in the fourth quarter from the arrival of more seasonable weather. We are confident we have the right merchandise assortment and a strong marketing program that will effectively convey our quality and value message."

Guidance
Keith Plowman, Executive Vice President and Chief Financial Officer, stated, "As noted in the Company's November 4, 2010 press release, our excess borrowing capacity under our revolving credit facility was approximately $462 million at the end of the third quarter of fiscal 2010, well above the required minimum availability."

Mr. Plowman added, "We are reiterating our full year 2010 guidance for EBITDA of a range of $235 million to $245 million and for income per diluted share of a range of $0.80 to $1.35. Our estimate for cash flow remains in a range of $80 million to $90 million, which, we believe, will permit us to manage and reduce our debt levels. Assumptions reflected in our full-year guidance include the following:

• Comparable store sales in a range of 1.0% to 1.5% increase;
• Gross margin rate of 37.7%;
• Reduction of $15 million to $20 million in SG&A expense;
• Effective tax rate of 0%;
• Capital expenditures not to exceed $50 million, net of external contributions; and
• Estimated 18.5 million to 19.0 million average shares outstanding."

Click here for more details

Bon-Ton Stores Inc

Must ReadView All

Apparel/Garments | On 27th Feb 2017

Myanmar sets up new committee to revise minimum wage

The Government of Myanmar has set up a new committee, replacing an...

Textiles | On 27th Feb 2017

Textile industry can boost South African economy: Minister

The textile industry is one of the most strategic platforms through...

Courtesy: Invista

Textiles | On 27th Feb 2017

Invista explores alternatives for apparel & textile trade

Invista, one of the world's largest integrated producers of chemical...

Interviews View All

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search