The Bon-Ton Stores reported results for the third quarter of fiscal 2015 ended October 31, 2015. Comparable store sales decreased 2.6%.
Article continues below
Total sales in the period decreased 3% to $623.4 million, compared with $642.7 million in the third quarter of fiscal 2014. Sales were adversely impacted by unseasonably warm weather and the continuation of soft traffic trends.
Despite these challenges, the company achieved a 3% increase in sales associated with our proprietary credit card and sales growth in eCommerce, primarily due to a higher conversion rate.
The sales performance in our small and mid-tier stores continued to outpace that of our larger locations. Year-to-date fiscal 2015 comparable store sales decreased 1%.
Other income in the third quarter of fiscal 2015 was $17.5 million, compared with $16.0 million in the third quarter of fiscal 2014.
The increase was largely the result of increased revenues associated with our proprietary credit card operations. Proprietary credit card sales, as a percentage of total sales, increased 299 basis points to 54.5% in the third quarter of fiscal 2015.
The gross margin rate in the third quarter of fiscal 2015 decreased 286 basis points as compared with the third quarter of fiscal 2014 to 33.4% of net sales, largely the result of increased net markdowns and increased distribution and delivery costs associated with omnichannel selling efforts in the current quarter.
Gross profit decreased $24.9 million to $208.4 million in the third quarter of fiscal 2015 as a result of both decreased sales volume and rate in the period.
In the third quarter of fiscal 2015, SG&A expense was $220.2 million, a decrease of $0.7 million from the third quarter of fiscal 2014 results.
The company's excess borrowing capacity under its revolving credit facility, which includes the $75 million increase as a result of the accordion exercise completed on August 28, was $250.2 million at the end of the third quarter of fiscal 2015. ■