The Bon-Ton Stores Inc. on Tuesday provided an update on its business performance, and reaffirmed guidance for fiscal 2016.
The retailer said it continues to expect adjusted earnings before interest, taxes, depreciation and amortization at between $130 million to $140 million. The loss per diluted share is expected at between 95 cents to $1.45. The company is also presuming a comparable-sales performance ranging from flat to a decrease of 1 percent. Bon-Ton is also presuming a gross margin rate ranging from a 30- to 50-basis point increase over the fiscal 2015 rate of 34.7 percent.
Kathryn Bufano, president and chief executive officer, said, “In light of recent developments, including the announcement regarding our sale-leaseback agreement, and the ongoing uncertainties in the marketplace, we believe it is prudent to provide an update on our quarter-to-date business trend.”
Bufano noted that sales trends overall are in line with the company’s plan, and that the company believes that it is “on track to meet our expectations for fiscal 2016. In addition, we continue to focus on maintaining adequate and sustainable liquidity levels for the business. As part of our ongoing refinancing efforts, we are working to diligently to explore all appropriate options to pay down our senior notes due in 2017, and remain confident that we will be in a position to pay down this debt prior to maturity in July of 2017.”
Shares of Bon-Ton Stores on Tuesday were trading up 4.4 percent to $1.44 in Nasdaq trading at nearly noontime.