follow us

Bon-Ton loss widens, but operating metrics improve

York, Pa. – Weighed down by soaring interest costs and takeover debt as it builds a department store empire, The Bon-Ton Stores recorded a widening third-quarter loss of $10.9 million, compared with a year-ago deficit of $6.3 million.

Acting as a drag on the bottom line was interest expense of $27.9 million, up almost ten-fold from $2.8 million last year, as the retailer took on debt to build a growing franchise of regional department store nameplates. Long-term debt grew by more than $1.2 billion over the past nine months, to $1.3 billion from just $42.5 million at the end of January.

Layering on sales from the Carson 's stores it acquired from Saks Inc., The Bon-Ton sales almost tripled, rising by 181.5% to $804.1 million from $285.7 million during the same period a year ago. Bon-Ton comps declined by 4.8%.

Looking past its mounting debt and interest costs, the retailer improved key operating metrics, leveraging higher margins and lower costs into an operating profit of $20.7 million, recovering from a small year-before loss of $1.3 million.

Featured Video

  • Online Moves From Afterthought To Main Thought For Textiles Suppliers

    Camera Icon More Videos

Other Home Furnishings Sites

Casual Living
Gifts and Decorative Accessories
Home Accents Today
Kids Today
Furniture Today