The Bon-Ton Stores, Inc. reported comparable store sales in the five weeks ended June 30, decreased 0.8 percent. Total sales decreased 1.0 percent to $238.3 million in the current year compared with $240.8 million in the prior year period.
Year-to-date comparable store sales decreased 0.7 percent. Year-to-date total sales decreased 0.9 percent to $1.06 billion compared with $1.07 billion in the same period last year.
¡°June sales were uneven throughout the month,¡± said Brendan Hoffman, president and CEO. ¡°During the Father¡¯s Day promotional period, customers responded favorably when we strengthened our marketing with emphasis on value, which also improved the ease of our customers¡¯ shopping experience. We were disappointed, however, with sales at the end of the month, which we believe were negatively affected by the timing of the July 4th holiday and the severe storms in some of our markets.¡±
The men's business performed well during the Father's Day period, particularly furnishings, gifts and performance golf sportswear. Other categories that performed well were fine jewelry, cosmetics, hard home, ladies' accessories and shoes. Poor performing areas were ladies¡¯ sportswear, furniture and children's.
¡°Our eCommerce business had an excellent month generating a double-digit sales increase,¡± Hoffman continued. ¡°We are effectively reducing our seasonal inventory levels as we transition into back-to-school and fall merchandise assortments.¡±
Keith Plowman, Executive Vice President and Chief Financial Officer, stated, ¡°Our excess borrowing capacity under our revolving credit facility was approximately $406 million at the end of June.
Plowman also noted that the company had received tenders with consents from holders of approximately $330.0 million principal amount of 10¨ù percent Senior Notes due 2014, representing approximately 71.1 percent of the outstanding principal on an offer that expired at midnight on July 3. At settlement, which is anticipated to occur on July 9, approximately $330.0 million principal amount of new 10¨ý percent Second Lien Senior Secured Notes due 2017 will be issued.¡±
The Bon-Ton Stores, Inc., with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 272 department stores, which includes 11 furniture galleries, in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner¡¯s, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger¡¯s and Younkers nameplates and, in the Detroit, Michigan area, under the Parisian nameplate.
