US: Weather impacts Bon-Ton Stores Q4 profit
By Richard Woodard | 8 March 2012
- Q4 profit down 8% to US$78.2m
- Sales down 2.7% to $983.2m
- Warm weather blamed for margin cut
Department store retailer The Bon-Ton Stores recorded a fall in fourth quarter profit after margins were hit by milder than expected weather.
Comparable store sales fell 2.6% in the three months to 28 January, and the gross margin was 34.6%, down from 37% the year before.
For the full year, sales were down 3.2% to $2.88bn and the company posted a net loss of $12.1m, versus a profit of $21.5m in fiscal 2010.
“Our fourth quarter sales and margin performance were below our expectations, primarily due to the adverse impact of milder weather in our markets on sales of cold-weather merchandise, as well as softness in our moderate traditional businesses,” said Bon-Ton president and CEO Brendan Hoffman.
“We responded by aggressively taking markdowns, resulting in a reduced gross margin rate for the fourth quarter and fiscal 2011.”
The company is projecting full-year EBITDA for fiscal 2012 of $180-200m and earnings per diluted share of $0.15-0.75.
Companies: Bon-Ton Stores
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