Bon-Ton posts $87.7M net loss

Boston Store parent The Bon-Ton Stores Inc. said it recorded a net loss of $87.7 million in its fiscal fourth quarter and sales decreased 9.4 percent.

The retailer said Wednesday that its fourth-quarter net loss was $5.22 per share, compared with a net income of $75.2 million, or $4.43 per share, in fiscal 2007. The net loss included charges of $7.39 per share for non-cash asset impairment charges to reduce the reported value of long-lived and intangible assets and to provide a valuation allowance for deferred tax assets.

For the fourth fiscal quarter ending Jan. 31, Bon-Ton (NASDAQ: BONT) said its comparable-store sales decreased 9.7 percent and total sales declined to $1.03 billion.

Bud Bergren, who is Bon-Ton’s Milwaukee-based president and CEO, said fiscal 2008 earnings and cash flow were “negatively impacted by the difficult economic environment and waning consumer confidence.”

“Consistent with the retail industry in general, the highly promotional climate and soft holiday season led to higher net markdowns and a decline in our gross margin rate as compared with the same period last year,” Bergren said.

Bergren said Bon-Ton executives believe consumer spending in 2009 will continue to be impacted by the weak economy, rising unemployment and low consumer confidence. The company’s management projects a decline in comparable-store sales and plans to reduce inventory receipts. The company also is reducing capital expenditures to $40 million.

Bon-Ton’s earnings before interest, income taxes and depreciation and amortization (EBITDA) decreased $58.2 million in the fourth quarter, to $116.7 million.

Keith Plowman, who is Bon-Ton’s executive vice president and chief financial officer, gave guidance for full-year fiscal 2009 EBITDA in a range of $140 million to $155 million and a loss per diluted share in a range of $3.40 to $4.30. The company’s estimated cash flow will allow further reduction in year-end debt levels, he said.

Bon-Ton Stores is based in York, Pa., and operates 280 department stores and furniture galleries under the Bon-Ton, Bergner’s, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger’s and Younkers nameplates. It also operates Parisian stores in the Detroit area.