The Bon-Ton Stores, Inc. said comparable store sales for the four weeks ended Jan. 31, 2009 decreased 8.2% compared with the prior year period. Total sales for the four weeks decreased 8.3% to $172.0 million compared with $187.6 million for the prior year period.
 
For the fourth quarter of fiscal 2008, comparable store sales decreased 9.7% compared with the prior year period. Total sales for the thirteen weeks decreased 9.4% to $1,031.4 million compared with $1,138.9 million for the prior year period.

Fiscal 2008 comparable store sales decreased 7.4% compared with the prior year period. Fiscal 2008 total sales decreased 7.0% to $3,130.0 million compared with $3,365.9 million for the prior year period.

“January lived up to its reputation as a clearance month,” said Tony Buccina, vice chairman and president – merchandising. “We responded to the consumer’s demand for value with promotions that drove traffic, enabling us to clear fall and holiday assortments and improve aging of inventory, as retail inventory, on a comparable basis, ended the month 13% below the January 2008 level. Our best performing businesses were men’s sportswear, children’s, outerwear, intimate apparel and accessories, especially cold-weather related merchandise. Our most challenging businesses remain furniture and ladies’ apparel. Our sales floors are transitioning to spring, and new goods are flowing into our stores.”

“The increased promotional activity and resultant net markdowns will reduce our gross margin rate below the rate provided in our fiscal 2008 guidance by approximately 80 basis points, which will be partially offset by reduced selling, general and administrative expenses,” said EVP and CFO Keith Plowman. “Additionally, as announced in our January 29, 2009 press release, the company is reviewing its intangible, long-lived and tax assets for impairment as defined under the applicable accounting pronouncements.”

He continued, “We ended fiscal 2008 with excess borrowing capacity under our revolving credit facility of $269 million, well above the required minimum availability of $75 million.”