Bon-Ton August Comps Rise - Analyst Blog

By
A A A

Bon-Ton Stores Inc. ( BONT ) which operates 272 stores in the Northeast, Midwest and upper Great Plains, recently reported a 2.2% upside in same-store sales for the four-week period ended August 25, 2012.

This compared favorably with a 4.7% decline in the year-ago period.  The comps benefited from the continuous efforts to improve the merchandise collection and the enhancement of marketing program.

Total sales crept up 2.1% to $180.8 million for the month of August, 2012 from $177.1 million in the comparable period ended August, 2011.

August comps were primarily driven by improved performance of categories like ladies and special size sportswear, both moderate and better; shoes; children's and home. The company also gained strongly from fine jewelry sales.

Additionally, Bon-Ton continues to record double-digit sales growth in eCommerce and considers it to be a significant growth driver. Moreover, the company's various efforts such as market share expansion of updated merchandise and marketing initiatives are expected to drive sales further.

Bon-Ton's year-to-date total revenue slipped 0.4% year over year to $1,416.4 million and same-store sales were down 0.3%.

Same-store sales at Bon-Ton's rival Kohl's Corporation ( KSS ) jumped 3.4% in the four-week period ended, August 27, 2012. Total sales rose 5.3% for the period.

Despite a challenging macroeconomic environment, U.S retailers succeeded in achieving positive same-store sales growth for the month of August, which is encouraging. The higher comps were mainly aided by back-to-school promotions.

Bon-Ton remains upbeat with the August comps results and expects the same trend to continue in 2012. The company expects comps growth in the range of flat to 1.25% for 2012, up from the previous estimate of negative 1.5% to positive 1.0%.

For 2012, Bon-Ton expects earnings in the range of loss of $1.35 per share to a profit of 20 cents per share, down from its prior outlook of a loss of 95 cents to a profit of 50 cents per share. However, the company reiterated its EBITDA guidance between $160 million and $190 million.

The Zacks Consensus Estimates for the third quarter and fiscal 2012 are pegged at a loss of $1.15 and 55 cents, respectively. The estimates have not budged in the last 7 days, implying that the analysts do not see any near-term catalysts.

The stock has a Zacks #3 Rank, implying a short-term Hold rating. We also reiterate our long-term Neutral recommendation on Bon-Ton.


 
BON-TON STORES (BONT): Free Stock Analysis Report
 
KOHLS CORP (KSS): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: BONT , KSS

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

91,252,153
  • $13.78 ▼ 4.31%
68,133,496
  • $12.93 ▲ 6.77%
57,268,074
  • $46.13 ▲ 2.47%
43,432,023
  • $105.22 ▲ 0.37%
40,880,685
  • $13.46 ▲ 8.90%
40,712,405
  • $98.62 ▲ 0.82%
39,776,976
  • $16.72 ▲ 0.72%
34,688,871
  • $11.16 ▲ 3.05%
As of 10/24/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com