The red ink flowed for The Bon-Ton Stores Inc. and Stein Mart Inc. in the second quarter, but Stage Stores Inc. managed to hold up better with just a small decrease in profits.
At Bon-Ton, losses widened to $33.8 million, or $2.01 a share, as the company took a $12 million, or 72 cent a share, charge to write down the value of goodwill. The charge was prompted by a drop in the firm’s stock value and expectation the tough economy will impede a near-term recovery. The quarterly losses compared with losses of $15 million, or 91 cents, a year ago.
Revenues for the three months dipped 4.9 percent to $694.9 million from $730.9 million as comparable-store sales fell 5.7 percent.
“We continue to adjust our operating plan based on what we are seeing in the marketplace and are making every effort to capture sales opportunities while remaining intently focused on controlling inventory, expenses and capital expenditures,” said Bud Bergren, Bon-Ton’s president and chief executive officer, on a conference call with analysts.
Like other regional players, the York, Pa.-based Bon-Ton has been pressured by a lack of consumer spending and stiff competition from better-capitalized national players.
Markdowns to move goods at Stein Mart pushed the Jacksonville, Fla.-based retailer to quarterly losses of $8 million, or 19 cents a share. This compared with earnings of $2.2 million, or 5 cents, a year ago. Sales for the three months slipped 5.8 percent to $311.6 million from $330.7 million, as comps fell 9.7 percent.
“We took aggressive markdowns in the second quarter to drive consumer traffic and achieve our goal of keeping inventory levels in line with the sales trend,” said Linda Farthing, president and ceo. “These lowered inventory levels, which we expect to continue, should give us a cleaner platform to present fresh fashion going forward.”
Stage Stores’ second-quarter earnings dipped 2.2 percent to $9.7 million from $9.9 million a year ago. Earnings per share, however, rose to 25 cents from 23 cents due to fewer shares outstanding in the most recent quarter. Sales rose 3.8 percent to $372.7 million from $359.2 million as comps dipped 1.4 percent.
“As a result of our strong inventory controls, we ended the quarter with our retail inventories down 8.9 percent on a comparable-store basis,” said Jim Scarborough, chairman and ceo. “Despite the difficult macroeconomic environment, our financial condition remains strong. Our free cash flow for the first half of the year exceeded last year’s level, while opening 28 stores this year versus 14 stores last year.”
The second quarter for Bon-Ton, Stein Mart and Stage Stores ended Aug. 2.
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews