UPDATE: Bon-Ton Stores Posts Wider-Than-Expected Q2 Loss, Cuts Profit Forecast

Shares of The Bon-Ton Stores

tumbled more than 6% in pre-market trading after the company reported a wider-than-expected second-quarter loss and lowered its profit forecast for the full year. Bon-Ton Stores now projects full-year earnings of $0.25 to $0.55 per share, versus its earlier outlook of $0.40 to $0.70 per share. The York, Pennsylvania-based company posted a quarterly loss of $36.2 million, or $1.86 per share, versus a year-ago loss of $37.3 million, or $1.95 per share. The year-ago quarter results included debt extinguishment costs of $3.9 million associated with certain of its senior notes. Its sales gained 1.1% to $563.5 million. However, analysts were expecting a loss of $1.54 per share on revenue of $577.05 million. Its same-store sales increased 1.6% in the quarter. Adjusted EBITDA fell to $5.1 million from $8.7 million. Selling, general and administrative expense rose $4.6 million to $215.8 million, while depreciation and amortization expense increased to $25.2 million from $24.1 million. Bon-Ton Stores expects FY14 earnings of $0.25 to $0.55 per share, versus analysts' estimates of $0.57 per share. Bon-Ton also projects comparable sales to rise 1% to 2%. Brendan Hoffman, President and Chief Executive Officer, said, “We were pleased that we achieved comparable store sales growth, particularly given the challenging promotional environment and continuation of soft traffic trends.” Bon-Ton Stores shares tumbled 6.41% to $8.47 in pre-market trading.