Bon-Ton Stores posts July sales, comps increase

YORK, Pa. Bon-Ton Stores posted a comparable-store sales increase of 0.7% for the four weeks ended Aug. 2. Total sales increased 1.8% to $197.9 million, compared with $194.3 million for the prior-year period.

For the second quarter of fiscal 2008, comparable-store sales decreased 5.7%. Total sales for the 13 weeks ended Aug. 2 decreased 5% to $673.4 million, compared with $708.6 million for the prior-year period.

"We are pleased with our July sales performance, particularly in light of the continued challenging economic environment," said Tony Buccina, vice chairman and president of merchandising. "Business was particularly strong during the latter part of the month due to our semi-annual home and back-to-school promotions. However, the consumer continues to be event- and value-driven, which pressured gross margin performance. Best performing categories for July were soft home, accessories, children’s, shoes, men’s, special-size sportswear, intimate apparel, cosmetics and dresses. Our only disappointment was furniture."

"Our excess borrowing capacity under our credit facility at the end of the second quarter of fiscal 2008 was approximately $238 million, an increase compared with $229 million at the end of the second quarter of fiscal 2007," stated Keith Plowman, evp and cfo.