Bon-Ton net loss widens to $1.4 million

For the second quarter ended July 30, the Bon-Ton Stores Inc., York, Pa., reported a net loss of $1.4 million, which includes an after-tax charge of $0.04 per share associated with the sale of its proprietary credit card operations, compared to a net loss of $388,000 in the prior year period, which included an after-tax charge of $0.07 per share for costs associated with the closing of the company's Pottstown, Pa. store. Total sales decreased 3.5 percent to $274.3 million compared to $284.2 million for the same period last year. Comparable store sales decreased 3 percent. James H. Baireuther, vice chairman and chief administrative officer, said in a statement: "We did not achieve the second quarter and spring sales results we expected. A major factor for the sales decline in spring 2005 was the sale of 'non-go-forward' merchandise in spring 2004 which reflected the realignment of assortments during the integration of Elder-Beerman. These goods generated non-recurring clearance sales of approximately $27.0 million in the first half of 2004. The replacement of sales from new merchandise did not occur to the degree we had anticipated. Additionally, apparel sales were impacted by unseasonably cool weather in May, but had favorable results with the arrival of warmer weather. Among the weakest areas of business was home, primarily due to a decrease in sales of clearance goods as compared to the prior year. This has greatly affected our business, as home sales represented 19 percent of total sales last year. We will continue to monitor this and intend to accelerate the recovery of these sales as we move forward into fall season."