Bluestem Group Inc. (OTCMKTS: BGRP) recently declared unaudited merged fiscal results that include its wholly-owned partner, Bluestem Brands, Inc. and its auxiliaries (“Bluestem Brands”), for the 13- and 26-weeks finished August 2, 2k19 and August 3, 2k18.
2nd-Quarter Fiscal 2k19 Bluestem Brands Highlights
- The previously declared planned exit from six of our eleven Orchard brands is on track, with inventory liquidation accomplished in August 2k19.
- Net sales were $365.40M, a 13.50 percent decline contrast to the 2nd-quarter of fiscal 2k18. Net sales reduced 9.70 percent when adjusted for exited brand sales in 2k19 and 2k18.
- Gross margin was 46.40 percent contrast to 47.80 percent in the 2nd-quarter of fiscal 2k18. Apart From the impact of inventory liquidation of the exited brands, gross margin was 46.60 percent.
- Selling and marketing costs as a percent of net sales was 21.80 percent contrast to 23.30 percent in the 2nd-quarter of fiscal 2k18.
- Net credit cost apart from servicing rights valuation was $23.20M, an improvement of $6.20M contrast to Q2 2k18 from a lower merchant discount rate charged on sales to SCUSA because of an improving credit portfolio.
- Contribution margin, apart from the impact of the servicing rights valuations and the inventory liquidation of exited brands, was 18.30 percent of net sales an improvement of 80 bps contrast to Q2 2k18.
- Adjusted EBITDA was $25.10M contrast to $31.60M in the 2nd-quarter of fiscal 2k18, apart from the impact of inventory liquidation of the exited brands, reduced 50 basis points as a percent of net sales.
- Compliant with lender covenants as of the end of the 2nd-quarter, net liquidity was $50.20M contrast to a covenant requirement of $40.00M and lender leverage ratio was 3.02x contrast to a covenant requirement of 4.50x.