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

US commerce department finds dumping of low melt PSF

Textiles | On 20th Jun 2018

US commerce department finds dumping of low melt PSF

The US department of commerce (USDC) has announced affirmative final...

Courtesy: Aditya Birla

Textiles | On 20th Jun 2018

'Growth of VSF yarn industry is difficult'

Growth for the viscose filament yarn (VSF) yarn industry is...

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Apparel/Garments | On 20th Jun 2018

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Italian company Eurojersey Spa will present in 2019 new embossing...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search