The Bon-Ton Stores, Inc.'s total sales for the four weeks ended
November 3, decreased 2% to $244.7 million from $249.7 million for the
prior year period. Bon-Ton and Carsons combined comparable store sales
for the four weeks decreased 1.4%. Carsons comparable store sales
decreased 0.5% and Bon-Ton comparable store sales decreased 3.2%.
For the third quarter, total sales decreased 2.9% to $780.8 million
compared to $804.1 million for the prior year period. Bon-Ton and
Carsons combined comparable store sales in the same period decreased
3.0%.
Year-to-date total sales increased 5.4% to $2,227.0 million compared to
$2,112.7 million for the same period last year. For informational
purposes only, year-to-date Carsons comparable store sales decreased
1.0%. Year-to-date Bon-Ton comparable store sales decreased 7.4%.
Tony Buccina, Vice Chairman and President Merchandising, commented,
“October sales continued to be negatively impacted by the unseasonably
warm weather across much of the country and a cautious consumer. Home
and furniture, better missy, petite and large size sportswear and
cosmetics were the best performing categories. Mens and ladies
outerwear, juniors, accessories and mens were our weakest performing
categories. All cold weather-related apparel and accessories in
womens, mens and childrens posted disappointing results. We are
managing our inventories in accordance with the soft retail demand. We
continue to flow fresh merchandise into our assortment where
appropriate and have strengthened our promotional calendar to attract
our customer during the important holiday season.”
Keith Plowman, Executive Vice President, Chief Financial Officer
stated, “While our sales performance improved when the weather turned
more seasonable, we do not believe the sales reflected pent-up consumer
demand. We expect our third quarter results to reduce our EBITDA by
approximately $20 million and our earnings per share by approximately
$0.75 below the lower end of the range of the fiscal 2007 earnings
guidance of $305 million to $310 million of EBITDA and earnings per
share of $2.75 to $2.90. Our excess borrowing capacity under our credit
facility at the end of the third quarter was approximately $254
million, which was $6 million above the prior year comparable quarter.”
Mr. Plowman continued, “At this point, we expect the retail environment
to be extremely promotional during the fourth quarter and we will
employ an aggressive promotional strategy to drive sales, which could
exert downward pressure on our margins. As we will have more clarity on
our holiday sales, we will incorporate our expectations for fourth
quarter results and provide our revised full-year fiscal 2007 guidance
with our third quarter earnings release and conference call on
Thursday, November 29.”