The Bon-Ton poised for cost-cutting

The Bon-Ton says it is focusing on reducing expenses after a third quarter in which the retailer tripled its net loss and decreased same-store sales.



For the quarter ended Oct. 31, the Pa.-based retailer had a net loss of $34 million ($1.72 a share), compared to a net loss of $11 million (57 cents a share) in the 2014 quarter. Revenue totaled $623.4 million, down from $642.7 million in third quarter 2014. Same-store sales declined 2.6%.



"Clearly, our third quarter results were challenged as sales were pressured by unseasonably warm weather, which significantly impacted our cold-weather classifications, and by continued weakness in overall traffic trends," said Kathryn Bufano, president and CEO. "However, customers strongly responded to our expanded brand offerings and we also saw sustained momentum in certain core categories. Recognizing that the competitive environment is likely to continue, we remain focused on creating a differentiated and compelling product assortment and leveraging our home town strategy. We also continued to control our expenses, resulting in a net reduction in SG&A in the period. We ended the quarter in a healthy inventory position in terms of freshness and content, primed for holiday selling. Additionally, as previously announced, we amended our private label credit card agreement, extending a valued and successful partnership three years to 2022."



The company's board of directors did not declare a dividend as a result of the current shareholders' deficit.



The Bon-Ton Inc. operates 270 stores.