Bon-Ton Stores Inc. (BONT) reported total sales of $ 254.5 million in March 2011, which dropped 6.6% from $ 272.4 million in March 2010. The company’s comparable store sales fell 6.1% for the month. The decline in revenues was due to the calendar shift of Easter from March to April in the current year, resulting in sluggish sales particularly in the apparel category.
In the month of March, the categories that performed well are fine jewelry, furniture and cosmetics. The company’s eCommerce category also witnessed robust growth, primarily driven by strong online sales. Bon-Ton is also taking initiatives to improve the customers’ online shopping experience.
However, children's apparel, ladies sportswear and men's furnishings did not perform well, which in turn hurt top-line results.
Bon-Ton’s year-to-date total revenue was down 4.3% year over year to $ 452.2 million and same-store sales decreased 3.7%.
Management experienced negative sales for the month of March, but expects revenue to be strong in the month of April attributable to good weather conditions and Easter holiday on April 24, 2011.
In the fourth quarter of 2010, sales grew 0.8% year over year to $ 1,010.0 million and same-store sales inched up 0.8%. In February, total sales plunged 1.1% to $ 197.7 million and same-store sales inched down 0.5%.
For fiscal 2011, the company expects same-store sales in the range of 1.5% to 3.5%.
The Zacks Consensus Sales Estimate for the first quarter of 2011 is $ 674 million and for fiscal 2011 is $ 3.1 billion. The Zacks Consensus EPS estimates for the first quarter and fiscal 2011 are pegged at 88 and 86 cents, respectively. The estimates have not budged in the last 7 days, implying that the analysts do not see any near-term catalyst.
The stock has a Zacks #3 Rank, implying a short-term Hold rating. We also reiterate our long-term Neutral recommendation on Bon-Ton.
One of its competitors, Kohl’s Corporation (KSS) reported a 4.9% fall in total sales and 6.5% decline in same-store sales in the month of March.
York, Pennsylvania and Milwaukee, Wisconsin-based 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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