Bon-Ton up over last year; Urban Outfitters down
Two companies with ties to the midstate have reported second-quarter earnings.
The Bon-Ton Inc.
The Bon-Ton Inc. had a net loss in the second quarter of fiscal 2014 (which started Feb. 2), but it wasn’t as big as the same quarter a year ago. Net loss was $36.2 million, or $1.86 per diluted share, compared with a net loss of $37.3 million, or $1.95 per diluted share, according to a news release from the company. The second quarter of fiscal 2013 results included $3.9 million of debt extinguishment costs associated with some of the company’s senior notes.
However, the company said its total sales in the second quarter of fiscal 2014 increased 1.1 percent to $563.5 million, compared with $557.1 million in the prior year period. Comparable store sales, or sales from those stores that have been open at least one year, in the second quarter increased 1.6 percent compared with the prior year period.
“We were pleased that we achieved comparable store sales growth, particularly given the challenging promotional environment and continuation of soft traffic trends,” President and CEO Brendan Hoffman said in the release.
The company is revising its 2014 guidance for adjusted EBITDA to between $165 million and $175 million, due in part to professional fees and severance associated with an initiative to trim expenses, as well as expenses connected to the company’s CEO transition. Earlier this month, Bon-Ton announced Kathryn Bufano would be taking over for Hoffman, effective next week. These costs will total an estimated $3 million to $4 million, said Keith Plowman, executive vice president and CFO.
“We expect earnings per diluted share to be in a range of 25 cents to 55 cents and cash flow to be in a range of $15 million to $25 million,” he said in the release.
The Bon-Ton Stores Inc., with corporate headquarters in York County and Milwaukee, operates 270 department stores, including 10 furniture galleries, in 25 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates.
Urban Outfitters Inc.
Urban Outfitters Inc., which is building a nearly 1-million-square-foot distribution center near the Gap area of Lancaster County, had mixed results in its second quarter. The Philadelphia-based company reported net income of $67.5 million for the second quarter of 2014, which works out to 49 cents per diluted share, compared to $76.3 million, or 51 cents per diluted share, a year earlier.
For the first six months of the year, net income was $104.9 million, or 74 cents per diluted share. That compares with $123.4 million, or 83 cents per diluted share, in the first six months of 2013.
However, total company net sales for the second quarter of fiscal 2014 increased to a record $811 million, or 7 percent over the same quarter last year, according to a news release from the company. Comparable retail segment net sales, which includes the comparable direct-to-consumer channel, were flat. The company’s stores include Free the People, Anthropologie Group and Urban Outfitters.
Urban Outfitters Inc. is a specialty retail company offering a variety of lifestyle merchandise through 233 Urban Outfitters stores in the United States, Canada and Europe, catalogs and websites; 193 Anthropologie Group stores in the United States, Canada and Europe, catalogs and websites; 97 Free People stores in the United States and Canada, catalogs and websites; Free People wholesale, which sells its product to approximately 1,400 specialty stores and select department stores worldwide; and two Terrain garden centers and a website.
It trades its shares on the NASDAQ under the ticker symbol URBN.