NEW YORK (TheStreet) -- Bon-Ton Stores (BONT) is trading lower on Tuesday after posting quarterly revenue lower than expected and announcing CEO Brendan Hoffman will step down when his contract expires next year.
By late afternoon, shares had taken off 11% to $9.68.
The department store chain reported total sales of $914.9 million, 9.9% lower than a year earlier, and a comparable-store sales decrease of 7.3%. Analysts surveyed by Thomson Reuters had forecast sales of $980.95 million.
Net income of $61.3 million, or $3.04 a share, fell from last year's $74.4 million, or $3.71 a share. Analysts had expected net income of $65.2 million or $3.18 a share."Multiple snowstorms and the polar vortex during the December and January periods resulted in a sharp decline in traffic and, therefore, we were unable to achieve our comparable store sales goals in the fourth quarter," said Hoffman in a statement. In a separate release, the York, Penn.-based business said Hoffman would not renew his employment agreement as CEO and president when it expires on Feb. 7, 2015. Hoffman noted his decision was based on strictly personal reasons. Must Read: Warren Buffett's 10 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates BON-TON STORES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: "We rate BON-TON STORES INC (BONT) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and generally high debt management risk."
- You can view the full analysis from the report here: BONT Ratings Report
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