Bon-Ton Stores Inc. (BONT) reported total sales of $173.6 million in July 2011, which declined 2.3% from $177.6 million posted in July 2010. The company’s comparable store sales also dipped 1.6% in the same period.
In the month of July, the categories that performed well were hard home, fine jewelry, cosmetics, men’s sportswear and ladies’ short and large-size sportswear. The company’s eCommerce category also witnessed solid growth on the back of strong online sales.
However, furniture, juniors and children’s shoes registered weak sales, which in turn affected top-line results.
Moreover, the performance of the company in July was weaker than the prior month, but better than the month of May. In May, Bon-Ton witnessed a 2.9% plunge in sales compared with a 1.5% dip in June. Additionally, comps were down 2.3% in May, while the same inched down only 0.9% in June.
Hence, the company’s total sales for the second quarter of 2011 decreased 2.2% year over year to $595.5 million attributable to a 1.5% drop in same-store sales. The reported sales results are below the Zacks Consensus Estimate of $620 million.
Bon-Ton’s year-to-date total revenue was down 1.9% year over year to $1,245.4 million while same-store sales plummeted 1.4%.
For fiscal 2011, the company expects same-store sales in the range of 1.0% to 2.5%.
Bon-Ton is expected to release its second quarter 2011 results on August 18, 2011.
The Zacks Consensus EPS estimates for the second quarter and fiscal 2011 are pegged at a loss of $1.60 and earnings of $1.06, respectively. The estimates have not budged in the last 30 days, implying that 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 Underperform recommendation on Bon-Ton.
One of its competitors, Gap Inc. (GPS) reported a 0.1% dip in total sales and 5% plunge in same-store sales in July.
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