Retailer The Bon-Ton Stores downgraded its full-year guidance after announcing wider first quarter losses for the company.

In the three months to 3 May, Bon-Ton recorded a net loss of US$34.1m, or $2.03 per diluted share, compared to last year's equivalent losses of $29.3m and $1.78.

Sales fell 5.1% to $700.2m, with comparable store sales dipping 4.6%. Other income edged down slightly to $22.8m from $22.9m.

"Our financial results continue to be impacted by the macro-economic environment," said Bon-Ton president and CEO Bud Bergren.

"Despite the softer retail environment, I'm proud of how our management team executed in the first quarter."

The company downgraded its full-year forecasts, predicting full-year EBITDA of $224-232m and diluted EPS of $0.00-0.30, based on a projected same-store sales decline of 2.5-3.5%.

"Looking ahead to the remainder of 2008, we will manage our business under the assumption that the difficult macro-economic environment will continue," said Bergren.

"While we are prepared to implement the necessary measures to deal with the current environment, we remain confident that we have a solid strategic plan in place and we will benefit from our efforts as the macro environment improves."