Bon-Ton Stores Inc. (BONT) reported total sales of $180.1 million for January 2011, which were in line with the year-ago quarter. The company’s comparable store sales inched up 0.3% for the month. The comparable sales leaped in spite of tough weather conditions during the month.
In January, the semi-annual home sale category excelled with a double-digit growth. Other outperforming categories included fine jewelry, ladies outerwear, cosmetics, shoes, men’s and missy sportswear. However, performances at ladies moderate and petite and women’s sportswear as well as children’s lost some of their sheen, resulting in top-line decline.
The company’s eCommerce category witnessed a robust growth, primarily driven by strong online sales. Bon-Ton is also taking initiatives to improve the customers’ online shopping experience.
In the fourth quarter of 2010, sales grew 0.8% year over year to $1,010.0 million and same store sales climbed 0.8%. In November, total sales rose 2.7% to $319.1 million and comparable store sales grew 2.9%. In December, total sales dropped 0.1% to $510.8 million and same store sales inched up 0.1%.
Bon-Ton’s year-to-date total revenue spiked 0.7% year over year to $2.98 billion and same store sales upped 0.9%.
Bon-Ton, headquartered in York, Pennsylvania and Milwaukee, Wisconsin ended the year with a credit facility of $472 million.
For fiscal 2010, the company expects same store sales in the range of 1% to 1.5%.
The Zacks Consensus Sales Estimate for the fourth quarter of 2010 is $1.0 billion and for fiscal 2010 is $3.1 billion. The Zacks Consensus EPS estimates for the fourth quarter and fiscal 2010 are $4.14 and 93 cents, respectively. The estimates have not budged in the last 30 days. Hence, we do not foresee any surprises during the earnings release and expect the company to report in-line.
Financial results for the fourth quarter and fiscal year 2010 are scheduled to be released on March 9.
The stock has a Zacks #3 Rank, implying a short-term Hold rating on the stock.. We also reiterate our long-term Neutral recommendation on Bon-Ton.
One of its competitors, Dillard’s Inc (DDS) reported a 6% growth in total sales as well as in same store sales for the month of January.
Bon-Ton has 275 department stores, which include 11 furniture galleries in 23 states in the Northeast, Midwest and upper Great Plains. Its brands comprise Bon-Ton, Bergner’s, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger’s, Younkers and Parisian.
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