The Bon-Ton Stores, Inc. reported that comparable store sales for the five weeks ended July 4 decreased 8.0%. Total sales fell 7.5% to $241.5 million from $261.2 million for the prior year period.
Year-to-date comparable store sales decreased 9.1%. Year-to-date total sales decreased 8.6% to $1.08 billion compared with $1.18 billion for the same period last year.
Tony Buccina, Vice Chairman and President Merchandising, commented, “Although June sales started off strong and met plan for the month, the unusually cooler and rainy weather impacted sales of our summer merchandise across all apparel categories. Additionally, while reduced clearance merchandise sales accounted for over half of the comparable stores sales decline in June, the decrease in clearance sales will have a positive impact on our gross margin rate. Our best performing businesses were soft home, accessories, cosmetics and childrens. Our weakest performing businesses were furniture, ladies sportswear, dresses and juniors. We are on schedule to receive back-to-school and transitional fall merchandise, along with new home assortments for our July semi-annual Home Sale.”
Keith Plowman, Executive Vice President and Chief Financial Officer, stated, “We ended June with excess borrowing capacity under our revolving credit facility of approximately $210 million, which reflects the receipt of the previously mentioned tax refund.”
The Bon-Ton Stores, Inc. operates 280 stores, including 12 furniture galleries, in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergners, Boston Store, Carson Pirie Scott, Elder-Beerman, Herbergers and Younkers nameplates and, in the Detroit, Michigan area, under the Parisian nameplate.
