Bon-Ton Posts 2Q Loss But Raises View; Shares Soar

YORK, Pa. (AP) — Bon-Ton Stores Inc. on Thursday reported a slightly wider second-quarter loss, but the department store operator raised its outlook for the year, sending its stock soaring.

Its shares jumped 99 cents, or 24 percent, to $5.04 in morning trading. The stock earlier hit a new year high of $5.70. It has ranged from 76 cents to $5.42 over the past year.

The department store owner recorded a loss of $34.8 million, or $2.04 per share, in the three months ended Aug. 1. That compares with a loss of $33.8 million, or $2.01 per share, a year earlier.

Revenue fell 10 percent to $625.3 million from $694.9 million.

Same-store sales fell 9.8 percent in the quarter. Same-store sales, or sales at stores open at least a year, are a key measure of retailer performance, because it measures growth at existing stores rather than from newly opened ones.

The York, Pa.-based company raised its 2009 estimate to a loss of $2.50 per share to $3.70 per share. The retailer previously forecast a loss of $3.40 to $4.30 per share.

Bon-Ton said its improved outlook is due to better-than-expected control of costs and inventory management.

It also said gross margins were up and general corporate expenses fell.