Bon-Ton to focus on expansion, omnichannel

Bon-Ton plans to refocus the brand, expand omnichannel efforts and open an e-commerce fulfillment center on the heels of a successful fourth quarter.

The company saw an increase in net income in the fourth quarter of fiscal 2014 to $71.7 million, up 17% from net income of $61.3 million in the same quarter of the previous fiscal year.

“We were pleased with our sales performance in the fourth quarter in both stores and e-commerce,” said Kathryn BUfano, president and CEO of Bon-Ton. “However, increased promotional activity in support of our initiative to drive incremental traffic as well as higher delivery expenses associated with our omnichannel operations resulted in a reduced gross margin rate in the fourth quarter. We managed our inventory such that we ended the period in line with our sales trend and well-positioned for spring selling.”

Sales at Bon-Ton grew 3%to $942.6 million from $914.9 million. Top-performing merchandise categories included cold weather and active apparel and home. The company continued its trend of double-digit sales growth in e-commerce in the period. Same-store sales rose 4.3%.

“As we look ahead, we are excited for continued progress on our initiatives. We are looking forward to the opening of our new e-commerce fulfillment center, which we expect will facilitate significant expansion of our shipping capacity with improved operational efficiency and support the fastest growing area of our business,” Bufano added. “Investments such as this will continue paving the way for sustainable long-term profitable growth.”

Bon-Ton operates 275 stores in the Northeast and Midwest.