Bon-Ton posts 5.3% rise in sales; CFO to exit

Holiday discounts helped Bon-Ton Stores post a robust increase in same-store sales.

The company said same-store sales for the nine-week holiday period ended Jan. 3 increased 5.3%. Total sales for the combined months of November and December were up 3.8%, the company said.

Kathryn Bufano, president and CEO, said the company was “pleased” with the numbers, but that a “highly promotional sales environment” tempered the impact of those improved sales on Bon-Ton’s profits.

As a result, Bon-Ton reduced its guidance for its full-year earnings before interest, taxes, depreciation and amortization by $10 million, to $140 million to $150 million.

Bon-Ton will report its results for the fourth quarter and fiscal 2014 ending Jan. 31 on March 12.

Bon-Ton also announced that Keith Plowman, chief financial officer and executive vice president, will retire in August. He then will serve as a consultant for 18 months. Plowman joined Bon-Ton in 1997 as controller and divisional vice president. He attained his current posts in 2006.

“I offer Keith our heartfelt thanks for his outstanding work at Bon-Ton,” said Tim Grumbacher, chairman of the board at Bon-Ton, which operates 272 stores. “Keith was instrumental in the planning, financing and execution of the company’s significant acquisitions in the prior decade when our store count grew four-fold in a three-year period. The progress made under Keith’s leadership is reflected in the great potential of our store base today.”