On Tuesday, the Milwaukee department store operator announced that customers can shop Cyber Monday deals on Sunday, November 29 through Monday, November 30. Shoppers can also receive $50 off online purchases of $100 or more, Bon-Ton said.
In an effort to compete with online shopping platforms like Amazon (AMZN), Wal-Mart (WMT) also extended its Cyber Monday sales to Sunday night, the retailer announced yesterday.
Last week, Bon-Ton CEO Kathryn Bufano said the company was pursuing changes to drive process improvements. Bon-Ton stock has fallen about 75% year-to-date.
"We ended the quarter in a healthy inventory position in terms of freshness and content, primed for holiday selling," Bufano said in a statement last week.
So far today, 1.37 million shares of Bon-Ton have traded, versus its 30-day average of about 288,000 shares.
Separately, 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 a number of negative factors, 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 feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The debt-to-equity ratio is very high at 62.97 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.11, which clearly demonstrates the inability to cover short-term cash needs.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Multiline Retail industry and the overall market, BON-TON STORES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- BON-TON STORES INC's earnings per share declined by 8.1% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, BON-TON STORES INC reported poor results of -$0.51 versus -$0.37 in the prior year. For the next year, the market is expecting a contraction of 64.7% in earnings (-$0.84 versus -$0.51).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Multiline Retail industry average, but is greater than that of the S&P 500. The net income has decreased by 9.3% when compared to the same quarter one year ago, dropping from -$36.19 million to -$39.56 million.
- Looking at the price performance of BONT's shares over the past 12 months, there is not much good news to report: the stock is down 86.41%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- You can view the full analysis from the report here: BONT
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.