Bon-Ton Stores Q3 Earnings Report: Getting a Bounce?

The Q3 2016 earnings report for small cap department store stock The Bon-Ton Stores, Inc (NASDAQ: BONT)is scheduled for before the market opens on Thursday (November 17th) as traditional department stores continue to struggle to figure out how to attract costumers into their stores as online giants increasingly become thedominant retail players.

A technical chart for The Bon-Ton Stores shows shares coming off of a multiple bottom:

A long term performance chart shows shares of The Bon-Ton Stores having two spikes while it along withlarge cap Macy’s, Inc (NYSE: M) and mid capDillard’s, Inc (NYSE: DDS) have posted large declines last year that may or may not have leveled off andsmall cap J C Penney Company Inc (NYSE: JCP) has at least stopped the bleeding:

In August, The Bon-Ton Stores reported that second quarter total sales decreased 2.4% to $542.4 million comparedto $555.4 millionas sales increases were achieved in Activewear, Big & Tall, Denim, Young Men’s, Young Contemporary Plus, Women’s Better Handbags, Hard Home and Furniture. The Company achieved accelerated growth in omnichannel, which reflects sales via its website, mobile site, and its Buy Online Pick Up In-Store and Let Us Find It initiatives, as it continued to successfully leverage its West Jefferson facility and expanded store-fulfillment network. Comparable store sales decreased 2.0% as compared with the prior year period. The net loss was $38.7 million compared with net loss of $39.6 million. The President/CEO:

“We made progress on a number of our strategic initiatives during the second quarter, although the soft mall traffic trends continued to negatively impact our business. Importantly, we delivered sales gains in our key growth categories and brands, and drove accelerated double digit growth in our omnichannel business, with a triple digit increase on our mobile site. In addition, we maintained careful inventory controls, as we reduced inventory by 6% with fewer markdowns. We also continued to make progress on our cost savings plan.”

“Looking ahead, we believe that the Fall assortment will be our best to date. We also expect that our omnichannel business will continue to deliver strong performance. While we are cognizant that the operating environment remains difficult, we believe that we are well positioned for the back half of the year with a strong merchandising assortment, a compelling marketing program focused on new customer acquisition, and continued discipline in inventory management and cost controls.”

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:

10/31/20151/31/20164/30/20167/31/2016
EPS Est. -0.61 2.78 -1.52 -1.75
EPS Actual -1.72 2.64 -1.91 -1.95
Difference -1.11 -0.14 -0.39 -0.2
Surprise % -182.00% -5.00% -25.70% -11.40%
EPS TrendCurrent Qtr.Next Qtr.Current YearNext Year
Current Estimate -1.36 3.68 -1.5 -1.55
7 Days Ago -1.36 3.68 -1.5 -1.55
30 Days Ago -1.36 3.68 -1.6 -1.73
60 Days Ago -1.36 3.68 -1.6 -1.73
90 Days Ago -1.24 3.52 -1.51 -1.34

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