Bon-Ton sees net income fall

YORK, Pa. The Bon-Ton Stores today reported that net income for the fourth quarter ended Feb. 2 was $75.2 million, or $4.43 per diluted share, compared to net income of $88.4 million, or $5.20 per diluted share for the same period ended Feb. 3, 2007.

For the fiscal year ended Feb. 2, the company reported net income of $11.6 million, or 68 cents per diluted share, compared to net income of $46.9 million, or $2.78 per diluted share, reported in the 53-week period of fiscal 2006. Net income in fiscal 2007 was negatively impacted by an asset impairment charge of $4.1 million on a pre-tax basis, or 16 cents per diluted share. Net income in fiscal 2006 was positively impacted by a state tax adjustment of $4.1 million, or 24 cents per diluted share, and negatively impacted by a charge of $2.9 million on a pre-tax basis, or 12 cents per diluted share, to write-down the value of duplicate and impaired assets.

For the fourth quarter of fiscal 2007, Bon-Ton and Carson’s combined comparable-store sales decreased 3.6% compared to the fourth quarter of fiscal 2006. Total sales for the thirteen weeks ended Feb. 2 decreased 8.9% to $1.14 billion compared to $1.25 billion for the fourth quarter of fiscal 2006, which consisted of fourteen weeks.

Fiscal 2007 Bon-Ton comparable-store sales decreased 6.5%. For informational purposes only, fiscal 2007 Carson’s comparable-store sales decreased 1.6%. Total sales for the 52-week period of fiscal 2007 increased 0.1% to $3.4 billion compared to $3.36 billion for the prior year period, which consisted of 53 weeks.

Keith Plowman, evp and cfo, commented, “Fiscal 2007 was a difficult year; however, as previously stated in our January sales press release, our excess borrowing capacity under our credit facility at the end of fiscal 2007 was $351 million, an increase compared to fiscal 2006. Additionally, our total debt at the end of fiscal 2007 was $42 million below last year, reflecting cash flow generated in fiscal 2007 which was utilized to reduce our debt.” 

Plowman said the company expects the retail environment to continue to be difficult in fiscal 2008. The company expects fiscal 2008 diluted earnings per share to be in the range of 20 cents to 45 cents. Comparable-store sales of a negative 1% to a negative 2% are expected.