The Bon-Ton Stores, Inc. (NASDAQ:BONT) today announced comparable store sales for the four weeks ended October 31, 2009 increased 3.1% compared with the prior year period. Total sales for the four weeks increased 2.5% to $224.0 million compared with $218.4 million for the prior year period.
For the third quarter of fiscal 2009 ended October 31, 2009, comparable store sales decreased 2.6% compared with the prior year period. Total sales decreased 2.9% to $703.9 million compared with $724.9 million for the prior year period.
Year-to-date comparable store sales decreased 6.9%. Year-to-date total sales decreased 6.7% to $1,957.7 million compared with $2,098.6 million for the same period last year.
Tony Buccina, Vice Chairman and President – Merchandising, commented, “We are very pleased with October sales, which exceeded both our expectations for the month and last year’s results. We are encouraged by the sustained improvement in our sales trend, which began in August. Moderate missy, petites and large-size sportswear led the sales performance, along with coats, accessories, soft home and children’s. Cold weather outerwear, accessories and boots performed extremely well as cooler temperatures drove traffic. Our weakest performing businesses were furniture and hard home. October ending inventories were down 9% on a comparable store basis and clearance inventories were down 20% from the prior year period. We believe we are well positioned for the holiday shopping season.”
Keith Plowman, Executive Vice President and Chief Financial Officer, stated, “We ended the month with excess borrowing capacity under our revolving credit facility of approximately $246 million, well above the required minimum availability of $75 million. October excess borrowing capacity was positively impacted by a change in the reporting process under our revolving credit facility. At our request, the borrowing base certificate reporting frequency has been changed to weekly during the period of October through December. This will permit borrowing availability to more accurately match the fluctuations in the Company’s inventory, as seasonal inventory builds in October and November and is subsequently converted to cash to reduce borrowings in late November and December.”
