Bon-Ton Stores lowers full-year outlook

The department store operator now expects fiscal 2008 results to range from break-even to a profit of 30 cents per share. Previously, the company forecast full-year earnings of between 20 cents and 45 cents per share.

Analysts polled by Thomson Financial, on average, estimate a loss of 35 cents per share.

Bon-Ton's estimate assumes a decline in same-store sales of between 2.5 percent and 3.5 percent. That is up from a prior estimate of a 1 percent to 2 percent decline.

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

"We are operating under the assumption that the retail environment will remain challenging for the remainder of fiscal 2008, and our focus is on strengthening our company through additional operating efficiencies," said Executive Vice President and Chief Financial Officer Keith Plowman in a statement.

The retail sector is struggling with tightened consumer spending as customers worry about rising gas costs, the continued housing downturn, eroding credit and recession fears.