The Bon-Ton Stores, Inc. Announces June Sales
~ Successfully Completes Notes Exchange Offer ~
YORK, Pa.--(BUSINESS WIRE)-- The Bon-Ton Stores, Inc. (BONT) today announced comparable store sales in the five weeks ended June 30, 2012 decreased 0.8%. Total sales decreased 1.0% to $238.3 million in the current year compared with $240.8 million in the prior year period.
Year-to-date comparable store sales decreased 0.7%. Year-to-date total sales decreased 0.9% to $1,062.2 million compared with $1,071.8 million in the same period last year.
Brendan Hoffman, President and Chief Executive Officer, commented, June sales were uneven throughout the month. During the Fathers Day promotional period, customers responded favorably when we strengthened our marketing with emphasis on value, which also improved the ease of our customers shopping experience. We were disappointed, however, with sales at the end of the month, which we believe were negatively affected by the timing of the July 4th holiday and the severe storms in some of our markets. The men's business performed well during the Father's Day period, particularly furnishings, gifts and performance golf sportswear. Other categories that performed well were fine jewelry, cosmetics, hard home, ladies' accessories and shoes. Poor performing areas were ladies sportswear, furniture and children's. Our eCommerce business had an excellent month generating a double-digit sales increase. We are effectively reducing our seasonal inventory levels as we transition into back-to-school and fall merchandise assortments.
Keith Plowman, Executive Vice President and Chief Financial Officer, stated, Our excess borrowing capacity under our revolving credit facility was approximately $406 million at the end of June. Additionally, in a separate press release this morning, we announced the final results of the Exchange Offer and Consent Solicitation that expired at 12:00 midnight, New York City time, on July 3, 2012. We are extremely pleased to report we received tenders with consents from holders of approximately $330.0 million principal amount of 10 ¼% Senior Notes due 2014, representing approximately 71.1% of the outstanding principal. At settlement, which is anticipated to occur on July 9, 2012, approximately $330.0 million principal amount of new 10]% Second Lien Senior Secured Notes due 2017 will be issued.
The Bon-Ton Stores, Inc., with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 272 department stores, which includes 11 furniture galleries, in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergners, Boston Store, Carson Pirie Scott, Elder-Beerman, Herbergers and Younkers nameplates and, in the Detroit, Michigan area, under the Parisian nameplate. The department stores offer a broad assortment of national and private brand fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings. For further information, please visit the investor relations section of the Companys website at http://investors.bonton.com.
Certain information included in this press release contains statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which may be identified by words such as may, could, will, plan, expect, anticipate, estimate, project, intend or other similar expressions, involve important risks and uncertainties that could significantly affect results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the Company. Factors that could cause such differences include, but are not limited to, risks related to retail businesses generally; a significant and prolonged deterioration of general economic conditions which could negatively impact the Company, including the potential write-down of the current valuation of intangible assets and deferred taxes; changes in the terms of the Companys proprietary credit card program; potential increase in pension obligations; consumer spending patterns, debt levels, and the availability and cost of consumer credit; additional competition from existing and new competitors; inflation; deflation; changes in the costs of fuel and other energy and transportation costs; weather conditions that could negatively impact sales; uncertainties associated with expanding or remodeling existing stores; the ability to attract and retain qualified management; the dependence upon relationships with vendors and their factors; a data security breach or system failure; the ability to reduce or control SG&A expenses, including initiatives to reduce expenses and improve efficiency; operational disruptions; unsuccessful marketing initiatives; the failure to successfully implement our key strategies, including initiatives to improve our merchandising, marketing and operations; adverse outcomes in litigation; the incurrence of unplanned capital expenditures; the ability to obtain financing for working capital, capital expenditures and general corporate purpose; the impact of new regulatory requirements including the Credit Card Accountability Responsibility and Disclosure Act of 2009 and the Health Care Reform Act; the inability or limitations on the Companys ability to favorably adjust the valuation allowance on deferred tax assets; and the financial condition of mall operators. Additional factors that could cause the Companys actual results to differ from those contained in these forward-looking statements are discussed in greater detail under Item 1A of the Companys Form 10-K filed with the Securities and Exchange Commission.
The Bon-Ton Stores, Inc.
Mary Kerr, 717-751-3071
Investor & Public Relations
Source: The Bon-Ton Stores, Inc.Copyright Business Wire 2012