Zacks_Analysts' Blog : Bon-Ton's June Sales Drop - Analyst Blog

Bon-Ton Stores Inc. (BONT) reported total sales of $240.8 million in June 2011, which declined 1.5% from $244.4 million in June 2010. The company’s comparable store sales also inched down 0.9% in the same period. The decline was primarily due to sluggish sales in the beginning of the month, partially offset by strong demand for warm weather clothing at the end of the month.

However, the performance of the company in June was better than the prior month. In May, Bon-Ton experienced a plunge of 2.9% in sales while comparable store sales were down 2.3%.

In the month of June, the categories that performed well were fine jewelry, home products, women’s sportswear, cosmetics and shoes. The company’s eCommerce category also witnessed solid growth, primarily driven by strong online sales.

However, furniture, junior and men’s wear registered weak sales, which in turn affected top-line results.

Bon-Ton’s year-to-date total revenue was down 1.9% year over year to $1,071.8 million while same-store sales plummeted 1.3%.

In the first quarter of 2011, the company’s total sales inched down 1.7% year over year to $649.9 million attributable to a 1.2% drop in same-store sales.

For fiscal 2011, the company expects same-store sales in the range of 1.0% to 2.5%.

Bon-Ton is expected to release its second quarter 2011 results on August 11, 2011. The Zacks Consensus Estimate for sales for the second quarter is $620 million. We expect the company to surpass the Zacks estimate in the second quarter.

The Zacks Consensus EPS estimates for the second quarter and fiscal 2011 are pegged at a loss of $1.60 and earnings of $1.06, respectively. The estimates have not budged in the last 30 days, implying that analysts do not see any near-term catalyst.

The stock has a Zacks #3 Rank, implying a short-term Hold rating. We also reiterate our long-term Neutral recommendation on Bon-Ton.

One of its competitors, Kohl’s Corporation (KSS) reported a 9.2% upside in total sales and 7.5% rise in same-store sales in June.