Bon-Ton Stores 3rd-quarter loss narrows

Bon-Ton Stores 3rd-quarter loss narrows, maintains fiscal 2012 forecast

Associated Press

YORK, Pa. (AP) -- Bon-Ton Stores' fiscal third-quarter loss narrowed partly on lower expenses as a key revenue metric improved.

The retailer has worked throughout the year to control costs, provide a better merchandise assortment and refine its marketing efforts, President and CEO Brendan Hoffman said in a statement Thursday.

For the period ended Oct. 27, Bon-Ton lost $10.1 million, or 55 cents per share. That compares with a loss of $22 million, or $1.21 per share, a year earlier.

Selling, general and administrative expenses and depreciation and amortization expenses declined 4.3 percent in the quarter.

Revenue rose 2 percent to $668.7 million from $656.1 million. Wall Street expected higher revenue of $674.3 million, according to FactSet.

Bon-Ton's stock dropped 51 cents, or 4.7 percent, to $10.42 in afternoon trading. The shares have traded in a 52-week range of $2.23 to $14.99.

Revenue at stores open at least a year, a key gauge of a retailer's health, climbed 1.9 percent. This figure excludes results from stores recently opened or closed.

The gross margin rate fell mostly because of increased markdowns and delivery costs.

For fiscal 2012, Bon-Ton Stores Inc. still expects somewhere between a loss of $1.35 per share and a profit of 20 cents per share.

The company, which has corporate offices in York, Pa., and Milwaukee, runs 273 department stores, which includes 11 furniture galleries, in 24 states.

View Comments