Bon-Ton shares fall as analyst reiterates 'Neutral' rating

On Thursday, the company reported April same-store sales, or sales in stores open at least one year, fell 0.9 percent, missing Wall Street expectations.

"While April's result was likely below company expectations, it was in-line with its industry peers," Buckingham Research group analyst David J. Glick in a note to investors on Friday. "April likely started well with the extra selling day and warm weather, but likely fell off during the last third of the month."

Retailers are suffering as consumers cut back amid rising food and gas prices, tightening credit markets and a housing slump.

"There is still great uncertainty as to what the company can earn for the full year and believe management may have to bring down its full year earnings per share guidance when they report first quarter (results)," he wrote.

He said annual same-store sales guidance of down 1 percent or 2 percent is likely too high, and expects the company may have to lower its 2008 earnings guidance.

He reiterated his "Neutral" rating on the stock.

"We continue to recommend investors remain on the sidelines," he wrote.

Shares fell 64 cents, or 6.6 percent, to $9.12 during afternoon trading. The stock has traded between $4.01 and $52.72 during the past 52 weeks.