The Bon-Ton Stores reported operating results for its fiscal first quarter ended April 29, 2017.
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Comparable store sales in the first quarter of fiscal 2017 decreased 8.8%.
Total sales in the period decreased 9.3% to $536.1 million, compared with $591.0 million in the first quarter of fiscal 2016.
The company once again achieved double-digit sales growth in omnichannel, which reflects sales via the company's website, mobile site and its Let Us Find It customer service program, as the company leveraged its West Jefferson facility and store-fulfillment network.
Other income in the first quarter of fiscal 2017 was $16.9 million, a decrease of $0.5 million compared to the prior year period.
The decrease was largely due to lower revenues associated with the company's proprietary credit card operations.
Proprietary credit card sales, as a percentage of total sales, increased 90 basis points to 55.8% in the first quarter of fiscal 2017.
The gross margin rate in the first quarter of fiscal 2017 decreased 170 basis points as compared with the first quarter of fiscal 2016 to 32.2% of net sales, due to an increase in the markdown rate and increased delivery expenses.
Gross profit decreased $27.5 million to $172.6 million in the first quarter of fiscal 2017, primarily as a result of decreased sales volume.
Selling, general and administrative (SG&A) expense in the first quarter of fiscal 2017 decreased $11.1 million compared to the first quarter of fiscal 2016, largely due to decreased rent, advertising, payroll, taxes, and medical expenses.
The SG&A expense rate in the first quarter of 2017 was 38.3% of net sales, an increase of 170 basis points over the prior year, primarily as a result of the decreased sales volume in the period.
The company's excess borrowing capacity under its revolving credit facility was approximately $226.5 million at the end of the first quarter of fiscal 2017, after payment of $6.6 million in fees associated with the company's recently closed ABL Tranche A extension. ■