Bon-Ton Stores Q1 adjusted EBITDA sinks to $1.3 million
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Gross profit decreased $6.4 million to $200.1 million.
Net loss was $37.8 million, or $1.91 per diluted share, compared with net loss of $34.1 million, or $1.74 per diluted share, in the first quarter of fiscal 2015.
Sales increases were achieved in Home, Young Men's, Big and Tall and Young Contemporary, while Woman's Accessories was the poorest performing category. Sales were also impacted by general weakness in apparel and shoes.
The Bon-Ton Stores again achieved double-digit sales growth in omnichannel, which reflects sales via the company's website and Let Us Find It initiative, as the company successfully leveraged its new West Jefferson facility and expanded store-fulfillment network.
Sales were impacted by general weakness in apparel and shoes.
Proprietary credit card sales, as a percentage of total sales, increased 400 basis points to 54.9% in the first quarter of fiscal 2016.
The gross margin rate in the first quarter of fiscal 2016 increased six basis points as compared with the first quarter of fiscal 2015 to 33.9% of net sales, as reductions in delivery expense were partially offset by higher distribution center costs for omni-channel operations.
Gross profit decreased $6.4 million to $200.1 million, primarily as a result of decreased sales volume.
Selling, general and administrative (SG&A) expense decreased $2.5 million compared to the first quarter of fiscal 2015, largely due to decreased store expenses, partially offset by increased advertising and higher-than-expected medical claims.
The SG&A expense rate in the first quarter of 2016 was 36.6% of net sales, an increase of 78 basis points over the prior year, primarily as a result of the decreased sales volume in the period.
The Bon-Ton Stores' excess borrowing capacity under its revolving credit facility was approximately $244 million at the end of the first quarter of fiscal 2016. ■