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.
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
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“I’m Russian and I love to use all these little tricks that I got from my grandma or my mom. We didn’t have a lot of money for creams or anything like that so we would use a garden as a beauty treatment regime. We’d put cucumber in the fridge and do a cucumber mask,” says model @irinashayk on one of her beauty hacks. WWD asked celebs what their go-to self-care rituals are. See what Naomie Harris, Freida Pinto and more said on WWD.com. #wwdeye #wwdbeauty (📷: @zefashioninsider)
Exclusive: @viktorandrolf are teaming up with @Zalando on a collection made from leftover clothing. The lineup, which lands at the retailer February 1, includes 17 pieces adorned with sliced up and repurposed overstock from the retailer’s private label collection. Pictured here is a look from the collection –– see more on WWD.com. #wwdfashion #wwdnews
@duewestnyc is the newest bar joining the collection of intimate neighborhood-focused spaces in the West Village. The cocktail menu, which includes bitters and syrups made in-house, offers a “Build Your Own Old-Fashioned” – like the one pictured here – where guests can choose from a list of spirits and unexpected sugars and bitters. #wwdeye
Spotted at last night’s National Board of Review gala in NYC: Angelina Jolie. Jolie – along with Meryl Streep, @lupitanyongo and more – continued the all-black dress code from Sunday’s Golden Globes. #wwdeye (📷: @lexieblacklock)