Bon-Ton Stores Up 9% After Beating Earnings Estimates
Shares of Bon-Ton Stores (NASDAQ: BONT) are up 9% after the company beat earnings estimates this morning.
Net income totaled $78.2 million, or $4.00 per diluted share, compared with net income of $85.0 million, or $4.41 per diluted share, for the fourth quarter of fiscal 2010. Fourth quarter of fiscal 2011 results include income of $0.93 per diluted share associated with the gain on extinguishment of debt.
Brendan Hoffman, President and Chief Executive Officer, commented, “Our fourth quarter sales and margin performance were below our expectations primarily due to the adverse impact of milder weather in our markets on sales of cold-weather merchandise as well as softness in our moderate traditional businesses. We responded by aggressively taking markdowns, resulting in a reduced gross margin rate for the fourth quarter and fiscal 2011. These efforts reduced inventory levels and enabled us to transition into spring assortments. Despite the fiscal 2011 results, we reduced our debt by approximately $47 million.”
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