Bon-Ton Stores 1Q loss widens on drop in sales

For the period ended May 3, the company reported a loss of $34.1 million, or $2.03 per share, compared with a loss of $29.3 million, or $1.78 per share, in the prior-year quarter.

Analysts polled by Thomson Financial, on average, estimated a loss of $2.25 per share on sales of $715.3 million.

Total sales fell 5 percent to $700.2 million from $737.6 million in the fiscal first quarter of last year.

Same-store sales fell 4.6 percent in the quarter.

Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

During the quarter, Bon-Ton said it reduced same-store inventories by 8.7 percent and reduced selling, general and administrative expenses by $4.6 million.

The company also reduced debt levels and increased its borrowing capacity under its credit facility.

Bon-Ton Stores operates 280 department stores in 23 states.