The Bon-Ton Stores, Inc. announced comparable store sales for the four weeks ended Oct. 29, decreased 10.2 percent. Total sales decreased 10.4% to $192.0 million for the four weeks compared with $214.2 million for the prior year period.
For the third quarter of fiscal 2011, comparable stores sales decreased 5.9%. Total sales for the thirteen weeks ended October 29, 2011 decreased 6.3% to $656.1 million compared with $700.5 million for the prior year period.
Year-to-date comparable store sales through October 29, 2011 decreased 3.0%. Year-to-date total sales through October 29, 2011 decreased 3.5% to $1,901.4 million compared with $1,970.5 million for the prior year period.
Tony Buccina, Vice Chairman, President – Merchandising, commented, “We are clearly disappointed with our October sales results. We attribute the weak performance to changes we made in our advertising calendar, which did not drive the results we expected, continued lackluster customer response to traditional merchandise offerings in ladies’ ready-to-wear and consumer resistance to increased pricing on certain products. On the positive side, strategic initiatives introduced in September, such as pilot stores, expanded shoe departments and assortments, and increased offerings of updated ladies’ merchandise have all yielded results above the Company’s performance.”
Mr. Buccina continued, “We have taken significant action to drive sales in the fourth quarter. Recent merchandise deliveries reflect a greater emphasis on stronger-selling updated goods and we have adjusted our pricing as appropriate to help drive sales. Additionally, all components of our holiday marketing media will feature more aggressive promotions to attract customers during this critical selling season. Moreover, we are entering November with inventory fresher than the prior year period.”
Keith Plowman, Executive Vice President and Chief Financial Officer, stated, “Based on lower than expected sales in the third quarter and a more conservative outlook for the fourth quarter, we are revising our full-year fiscal 2011 guidance to reflect EBITDA (see Note 1) to be $190 million to $210 million, earnings per diluted share to be $(0.65) to $0.25 and cash flow to be $25 million to $40 million (see Note 2). We will provide more detail on our fiscal 2011 outlook in our earnings press release on November 17.”
Mr. Plowman continued, “Our excess borrowing capacity under our credit facility at the end of the third quarter was approximately $380 million. As a reminder, in early 2011, we reduced our revolving credit facility by $50 million, which only impacts October and November borrowing capacity, and paid off our second lien term loan of $75 million, resulting in a planned reduction to our excess borrowing capacity of $125 million.”
Financial results for the third quarter of fiscal 2011 are scheduled to be released Thursday, November 17, 2011. The Company’s quarterly conference call to discuss the financial results will be broadcast live over the Internet on November 17, 2011 at 10:00 am eastern time. To access the call, please visit the investor relations section of the Company’s website at http://investors.bonton.com. An online archive of the broadcast will be available within one hour after the conclusion of the call.
The Bon-Ton Stores, Inc., with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 275 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. The department stores offer a broad assortment of national and private brand fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings. For further information, please visit the investor relations section of the Company’s website at http://investors.bonton.com.
