Bon-Ton 1Q Loss Widens On Smaller Tax Benefit

YORK, Pa. (AP) — Bon-Ton Stores Inc. said Thursday that its fiscal first-quarter loss widened due to a much smaller income tax benefit and sliding sales.

The department store chain posted a loss of $45.4 million, or $2.67 per share, compared with a loss of $34.1 million, or $2.03 per share, a year ago.

Results were mostly hurt because its income tax benefit declined to $1.1 million from $15.8 million.

Sales slipped 8 percent to $644.5 million from $700.2 million for the period ended May 2.

Same-store sales fell 8.6 percent in the quarter. Same-store sales, or sales at stores open at least a year, are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.

Bon-Ton said it has continued to lower inventory levels and reduce expenses as it tries to cope with the consumer spending pullback prompted by the recession.

The retailer reduced same-store inventory by 11 percent and clearance inventory by 16 percent.

Selling, general, and administrative costs dropped to $236.8 million from $255.8 million, and gross margin improved by 80 basis points to 34.8 percent.

Bon-Ton, which operates stores such as Bergner's, Carson Pirie Scott, Herberger's and its namesake, maintained its forecast for a full-year loss in the range of $3.40 to $4.30 per share.

The company runs 280 department stores, which includes 12 furniture galleries.

Shares of Bon-Ton shed 18 cents, or 4.3 percent, to $4.01 in morning trading.