Bon-Ton Stores Q2 Earnings: Focused on the Long Term

Small cap department store stock The Bon-Ton Stores, Inc (NASDAQ: BONT) reported Q2 2017 earnings before the market opened on Thursday while earnings guidance for the full year fiscal 2017 was reaffirmed. Total sales decreased 7.0% to $504.4 million as comparable store sales decreased 6.1% versus the prior year period. However,double-digit sales growth continued in the 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. The net loss was $33.2 million versus a net loss of $38.7 million.The CEO commented:

“We made progress in several important areas of the business during the second quarter. We saw strength in key merchandise categories and brands and were pleased with the continued double-digit growth in our omnichannel business. Additionally, we continued to effectively execute our profit improvement initiatives, substantially reducing our SG&A expense for the quarter. While our results were consistent with our expectations and showed an improvement over our performance in the first quarter, we remain focused on working to better position the business for the long-term. Looking forward, we will focus on efforts to further enhance our merchandise assortment with an emphasis on our targeted growth categories, refine our marketing strategy to increase traffic and customer engagement, and drive growth in our omnichannel business. In addition, we expect to achieve further cost reductions through the continued rollout of our profit improvement initiative. We believe that these actions will drive improved performance in the back half of the year.”

A technical chart for The Bon-Ton Stores shows shares were in a downtrend, but now are hovering below a key resistance line:

A long term performance chart shows shares of The Bon-Ton Stores spiking twice in 2013 and largely falling off since then while large cap Macy’s, Inc (NYSE: M) andsmall capDillard’s, Inc (NYSE: DDS)began falling off in 2015 andsmall cap J C Penney Company Inc (NYSE: JCP) was crushed much earlier:

Finally, here is a quick recap of small cap Bon-Ton Stores recent earnings history along with EPS estimate trends from the Yahoo! Finance analyst estimates page going into the current earnings report:

Earnings History4/29/20167/30/201610/30/20161/30/2017
EPS Est. -1.52 -1.75 -1.36 3.24
EPS Actual -1.91 -1.95 -1.58 2.87
Difference -0.39 -0.2 -0.22 -0.37
Surprise % -25.70% -11.40% -16.20% -11.40%
EPS TrendCurrent Qtr. (Apr 2017)Next Qtr. (Jul 2017)Current Year (2018)Next Year (2019)
Current Estimate 0 0 0 0
7 Days Ago -1.75 -1.4 -2.34 -0.51
30 Days Ago -1.75 -1.4 -2.34 -0.51
60 Days Ago -1.75 -1.4 -2.34 -0.51
90 Days Ago -1.75 -1.4 -2.34 -0.51

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