Bon-Ton Sales Up Slightly in 2012

The Bon-Ton Stores Inc.—which has a store that anchors South Mall—says its sales were up in the fourth quarter and for 2012 overall.

Fourth Quarter Highlights

• Comparable store sales increased 1.0% as compared with the same 13-week period last year.
• Gross margin rate increased 160 basis points to 36.2%, compared with 34.6% in the fourth quarter of fiscal 2011.
• Operating income increased $14.9 million to $95.3 million, compared with $80.5 million in the fourth quarter of fiscal 2011.
• Net income totaled $74.4 million, or $3.71 per diluted share, compared with net income of $78.2 million, or $4.00 per diluted share, for the fourth quarter of fiscal 2011. Fourth quarter of fiscal 2011 results include income of $0.93 per diluted share associated with the net gain on extinguishment of debt.

"We were pleased with our fourth quarter results and our accomplishments throughout 2012. We sequentially improved the business each quarter through a number of key initiatives, including a better balanced merchandise assortment, more disciplined inventory management, enhanced marketing efforts and upgrades to our eCommerce business," said Brendan Hoffman, President and Chief Executive Officer.

Fiscal 2012 Highlights

• Comparable stores sales increased 0.5% as compared with the same 52-week period last year.
• Gross margin rate was 35.8%, compared with 36.0% in the prior year.
• Operating income totaled $70.0 million, compared with $66.6 million in the prior year. Operating income for fiscal 2012 includes a $7.9 million charge for severance-related costs associated with targeted reductions to the Company’s cost structure and a gain of $3.1 million related to the Company’s sale of certain Rochester, NY locations.
• Net loss totaled $21.6 million, or $1.16 per diluted share, compared with a net loss of $12.1 million, or $0.67 per diluted share, for the prior year. Fiscal 2012 results include a charge of $7.1 million, or $0.38 per diluted share, for fees associated with the senior notes exchange, a charge of $7.9 million, or $0.43 per diluted share, for the severance-related costs and a net gain of $1.9 million, or $0.10 per diluted share, related to the Company’s sale of certain Rochester, NY locations and subsequent prepayment penalty on the extinguishment of related mortgage debt. Fiscal 2011 results included income of $0.48 per diluted share associated with a net gain on extinguishment of debt.

The Bon-Ton Stores, Inc., with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 271 department stores, which includes 11 furniture galleries, in 24 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates.