The Bon-Ton Stores Inc., which has dual headquarters in Milwaukee and York, Pa., today reported a 29.5 percent drop in fiscal fourth quarter profit, partly driven by unseasonably warm weather.
The retailer reported fourth quarter net income of $50.6 million, or $2.42 per share, down from $71.7 million, or $3.56 per share, in the fourth quarter of 2014.
Operating income was $67 million in the quarter, down from $87.5 million in the same period a year ago.
Fourth quarter revenue was $927.9 million, down from $942.6 million in the fourth quarter of 2014. Comparable store sales were down 1.9 percent year-over-year.
The company’s losses steepened substantially in 2015. For the full year, Bon-Ton reported a net loss of $57.1 million, or $2.90 lost per share, compared with a net loss of $7 million, or 36 cents lost per share, in 2014.
Full-year operating income was $9.8 million, down from $56.5 million last year.
Revenue was $2.7 billion in 2015, down from $2.8 million in 2014. Comparable store sales decreased 1.3 percent in 2015 versus 2014.
Company leaders attributed some of the decline to an unseasonably warm winter, which led to 10 percent lower sales in cold weather gear. Like other retailers, Bon-Ton has also been working to adjust to customers’ changing shopping preferences, as more people shop online rather than in person.
Bon-Ton has been increasing its focus on the “omnichannel” experience, which involves targeting the customer online, in-store and on mobile devices. The company will also begin offering “Buy Online Pick-Up in Store” in the second quarter.
“Despite external headwinds and unseasonable weather that continued into the fourth quarter, we successfully managed elements within our control, reducing SG&A expense for the year and ending the period with inventories below prior year levels,” said Kathryn Bufano, president and chief executive officer of Bon-Ton. “We were pleased with our progress made on a number of strategic initiatives, including the introduction of key new brands and the expansion of localized merchandise content. Our omnichannel sales achieved double-digit growth and we increased our online capacity with our new, fully-automated West Jefferson e-commerce facility. Additionally, we successfully addressed our capital structure by increasing the borrowing capacity under our revolving credit facility and retiring two mortgage facilities in advance of their April 2016 maturity date.”
Bon-Ton Stores operates 267 department stores in 26 states under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers brands.
